How Obsidian Energy Recovered From Low Oil Prices

Obsidian Energy Ltd. is an intermediate sized business in the oil and gas industry. They are based in Calgary, Alberta and employ around 300 people. The area in which they drill for oil is known as the Western Canadian Sedimentary Basin which houses one of the largest oil reserves on the globe. They have a well-balanced portfolio of wells which produce about 30,000 barrels of oil each day.

 

Obsidian Energy used to be known as Penn West Petroleum, but the name was changed on June 26, 2017. Penn West Petroleum had some difficulties during the time that the value of a barrel of oil plummeted in 2015 and 2016. The executives of Obsidian Energy completely overhauled the company, getting rid of underproductive assets and right-sizing the company when it came to how many people they employ. The also brought in a new chief executive officer, David L. French.

Once the major overhaul of the company was completed the new company did not reflect what Penn West Petroleum had been. Due to this, the executives had shareholders hold a vote seeking their approval to change the name of the company to Obsidian Energy. The stockholders approved, and the name was changed. In a statement, the company said that they were pleased with the change of a name and a chance at a new beginning. View Additional Info Here.

 

Obsidian Energy is based on three core principles. The first is that they will build and protect the value of the company by focusing on making disciplined commercial and technical decisions. Second, they would aggressively pursue innovation and progress. Last, they would transparent with their shareholders and accountable for their decisions.

 

At Obsidian they take their responsibility to the community, the environment, and their employees seriously. The health and safety of their employees are assured through the initiatives and training they continuously undergo. They have a Community Matters initiative that makes sure all stakeholders interests are honestly addressed. Finally, they minimize the impact their business operations have on the environment. For example, the conserve resources wherever they can and when a site is abandoned they follow all relevant reclamation practices.

See Also: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy