OBSIDIAN ENERGY LTD: AN OIL AND GAS PRODUCING COMPANY

OBSIDIAN ENERGY LTD: AN OIL AND GAS PRODUCING COMPANY

Obsidian Energy Ltd is a medium-sized oil and gas producing company in Calgary Alberta along the sedimentary basin of western Canada. The company was earlier the Penn west exploration, Penn west energy Trust, and Penn West petroleum until June 26th, 2017. It was among the sixty largest companies on the stock exchange of Toronto and became a Canadian Royalty Trust from 2005 to 2011 attaining its market capitalization of US $9.5 billion approximately. The core sources of production zones comprise the Alberta Viking, Peace River oil sands, and the Pembina Cardium.

Changing the name to Obsidian Energy was approved by the stakeholders of Penn West. The CEO, Dave French, revealed that the reason behind choosing the name was because obsidian was a volcanic gas, naturally occurring and could be easily ‘sharpened and honed.’ For belonging to Canadian royalty trusts, the company’s dividends were not taxed at a consistent dividend rate and as a return on its capital but not on investments hence an advantage even to the United States. The government ultimately collapsed obliging the trusts to pay similar taxes as the corporations. The dividends were in the long run cut since all trusts converted to businesses. The currently obsidian in January 2011 switched to a conventional company from the Canadian royalty trusts.

 

The Obsidian Energy Ltd has a balanced holding of quality assets that produce roughly 30000 boes daily. The organization and its assets promote an entrepreneurial spirit needed in the business industry for exceptional entrepreneurial outcomes. The company carries out its mandate with passion, discipline and full accountability to its partners, stakeholders and the community around it. All this has been a positive turn around by the company and as result, the company is now enjoying a great period of success.

 

Obsidian Energy Ltd, through its community matters program, aims at positively impacting the communities in which it lives and functions. It carries out its daily operations responsibly, respectfully and openly interacting with its area residents in addressing their concerns, mitigating oil and gas operational impacts with a goal of minimizing the effects on the environment through their environmental programs.

 

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