The history of Obsidian Energy Ltd can be traced back to 1980 after the amalgamation of a couple of small firms that had been formed to operate within the tough oil and gas sector of Western Canada. In the years that followed, the company witnessed significant growth by acquiring both producing and non-producing oil and gas properties.
The recently renamed midsized Canadian Oil and natural gas production firm is located in Calgary, Alberta along the Western Canadian Sedimentary Basin. The region is known for having the most significant petroleum reserves in the world. The company relies on production from three key areas namely Alberta Viking, the Peace River oil sands, and Pembina Cardium.
In the past, Obsidian Energy was known as Penn West Exploration Ltd, Penn West Petroleum, as well as Penn West Energy Trust. The management announced the change of its name to Obsidian Energy Ltd in June 2017, effective immediately. According to the chief executive officer, Dave French, the firm settled on the name because the volcanic glass occurs naturally and allows sharpening and honing.
Following the change of name, the company’s stock symbol both on the New York Stock Exchange and Toronto Stock Exchange will be replaced with ‘OBE.’ 92 percent of the shareholders voted in favor of the name change. However, the management did not expect the shareholders to make any adjustments due to these changes.
Obsidian Energy Ltd plans to seek modest growth for the next three years. Its spending budgets are strictly tied to the oil and gas prices. Obsidian is committed to implementing enhanced oil recovery techniques at all times in all the core areas of operations. It relies on Water Flood as the primary technique because it allows the extraction of hydrocarbons – something that wouldn’t have been possible if the conventional central methods of production were used.
The company is also evaluating other useful production techniques such as steam injection methods (like cyclic steam stimulation and steam assisted gravity drainage) and carbon dioxide miscible flooding. The application of improved recovery methods of production permits the firm to increase reserves as well as output from the prime, conventional and gas properties that make up a considerable part of its asset base. Refer to This Site.