Obsidian energy is a midsized company that deals with the production of oil and natural resources. It was formerly known as Penn West Exploration Limited before it was renamed obsidian energy limited following a resolution by shareholders to effect the change with a support of 92 percent on 26th 2017. The name originates from a naturally occurring volcanic glass. It will come with symbol change, which will be replaced by ‘OBE’ on the stock exchange markets.
The company’s headquarters is located in Albert, Calgary, which is in one of the largest petroleum reserves in the world. It has undergone significant restructuring following operational and financial changes over the past few years such as accounting irregularities. Besides, Obsidian Energy, according to its chief executive officer, is to be guided by three principles;
- Disciplined commercial and technical decision making to protect the enterprise value
- Transparent and accountable efforts with partners, shareholders and the community in which they operate
- Steady pursuit of progress and innovation
Obsidian Energy’s oil and natural production company currently have about 300 employees led by David L. French who is the company’s chief executive officer since October. The daily production is about 28, 000 barrels of oil from the previous 135,000. The company has narrowed its production areas from about 30 to four with the aim of increasing its profitability. Obsidian Energy has also managed to reduce its net debt from $3 billion in 2013 to 384 million this year. Obsidian Energy undertook several measures such as selling off assets to manage this debt reduction resulting at the end of the lawsuits and scandals that had characterized the company. It announced $8.5 million reimbursement with the Securities and Exchange Commission in the US. Obsidian Energy also suspended the payment of dividend to the shareholders and also cut down the compensation for the board of directors. Obsidian Energy is expected to perform better if the third quarter results and 2018 budget is anything to be put into consideration. The chief executive officer, David French, promised a bright future of the company during an interview with the Toronto stock exchange noting that the future of Obsidian is bright.
Check Out This Page to learn more about the company.
Formerly known as Penn West Petroleum Limited, the company redefined by formally changing to Obsidian Energy Limited in 2017.Obsidian Energy is an oil and gas producer with a tremendous portfolio of quality assets. Obsidian’s Oil and gas fields are situated in Alberta, an area globally known for its large petroleum reserves. The product is extracted from Pembina Cardium, Peace River oil sands, and Alberta Viking.
The company has a higher commitment towards ensuring minimum impacts of its operations to the environment. Obsidian Energy has a program which focuses on going past environmental regulations adhering to necessary site reclamation and abandonment Obsidian Energy’s sole mission towards the environment is to carry out its activities peacefully and responsibly emphasizing to the employees to address concerns from the area with diligence.
The company has the commitment to uphold the safety of its employees and contractors. This is made possible by instilling safety principles including safety policies and procedures, compliance with those policies and procedures and many others. Towards its commitment to safety, Obsidian Energy has an emergency response plan to counter any emergency related to its operations. The emergency plan also undertakes community awareness to enlighten the community how to respond in case of an emergency. Click Here For Related Article.
In the Alberta Viking, Obsidian Energy possesses a leading and ownership of the whole Esther area. The area has a combination of light-oil and gas plus shorter cycle wells to complement activities in Cardium. The Cardium is the pioneer of the foundation with high light oil production. Waterfloods increase the production and recovery rates in the Cardium. Peace River is a joint between Obsidian and China Investment Corporation. The venture has massive production of the precious commodity.
Mr. David L. French is the president and Chief Executive Officer of Obsidian Energy. He had previously served as the president of the Bankers Petroleum Association with its operations in Europe. Mr. French had led the tasks and growth of the business during the time he had served. Also, on the list of his management team includes David Hendry who is the Chief Financial Officer and many others.
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.
More On: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy