Obsidian Energy Transforms the Canadian Petroleum Industry

Obsidian Energy Ltd, a middle-sized Canadian oil and natural gas manufacturing firm is located in Calgary, Alberta. It was among the sixty leading companies in Toronto Stock Exchange. Between 2005 to 2011, the Canadian Royal Trust attained top market capitalization of about US $9.5 billion. The economic instabilities caused by the drop in crude oil prices in 2014, affected Obsidian Energy Ltd causing restructuring. With its fields based in in Alberta the global most significant petroleum reserves, Obsidian Energy production happens in the Peace River Oil Sands, Alberta Viking and Pembina Cardium.

 

Transformation Process

The company was previously known as Penn West Petroleum Ltd and reformed to Obsidian Energy Ltd on 26th June 2017. Before its transformation, the firm experienced significant modifications which necessitated redefining of company missions and visions. The changes resulted in a stronger and more focused Obsidian Energy Ltd. Company logo will too be amended to match the new company name. These alterations must also happen on the New York Stock Exchange and Toronto Stock Exchange The process should be accomplished within the next three to five business days.

 

The governance and management of Obsidian Energy Ltd, are happy to have successfully accomplished the transformation process successfully. Obsidian focuses to commence fresh operations based on three principles. Their aim is on technical and commercial discipline in decision making to develop and safeguard company values. They also focus on the persistent pursuit of development and invention and accountable and reasonable efforts with shareholders and stakeholders.

 

Market Positioning

 

Obsidian Energy Ltd has a competitive edge in the market. It is strategically positioned, equipped with sufficient assets, has enough cash flow and a perfect exit strategy. The firm president and CEO David French confirmed that Obsidian Energy Ltd is dictating its market performance. The Penn West Successor is now embracing expansion trajectory and gaining back its competitive advantage. Click Here for more information.

 

Projected Financial performance

 

According to operation reports obtained in 2017 November, Obsidian Energy Ltd is projected to produce 31,000 to 32,000 barrels by 2018. The financial forecast shows an expenditure of $ 14 per barrel and $ 2.50 for G&A by 2018. Expected netbacks by the end of 2018 should not less than $18.70.

 

Related: https://finance.google.com/finance?q=NYSE:OBE

The Restructuring of Obsidian Energy Led to Growth

Previously, Obsidian Energy went under different names including Penn West Exploration Ltd. Penn West Petroleum and Penn West Energy Trust. It is an intermediate-sized company that is involved in the production of oil and natural gas. The company is headquartered in Calgary, Alberta. At one time, Obsidian Energy was among the S&P/TSX 60 sixty largest companies on the Toronto Stock Exchange. It was also a Canadian Royalty Trust (CANROY) in 2005-2011 and reached its highest market capitalization in 2008 with a net worth of about $9.5 billion.

 

 

In 2014, after the crude oil crunch, the company underwent a major restructuring. The company’s oil and gas fields are located in Alberta along the Western Canadian Basin. This region is one of the world’s largest oil reserves. The company makes use of three key locations in the region to produce gas. These locations include the Peace River oil sands, the Pembina Cardium, and the Alberta Viking. It has a total production equivalent of about 30,000 boe per day.

 

 

The company was renamed because it planned on pursuing a path of modest growth in the years to come by tightly tying the price of oil and gas on the spending budgets. These resolutions were voted by a majority of the shareholders who preferred Obsidian Energy to undergo rebranding. They chose the name Obsidian because it is a naturally occurring volcanic glass that can easily be sharpened and honed. The name was symbolic to the situation of the company at that moment in time.

 

 

In view of its stable asset base, Obsidian Energy was able to reduce its net debt and at the same time focusing on four key production areas. The restructuring of the company enabled it to have a strong grip on its financial management systems and employment of cost effective measures which brought it back to profitability. Currently, the company is enjoying a steady growth and has adapted stringent measures to improve its revenue base. It has well organized management structure that is capable of transforming the company into one of the leading oil and gas producing company of all times.

 

Visit: https://beta.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/penn-west-shareholders-approve-name-change-to-obsidian-energy/article35463586/?ref=http://www.theglobeandmail.com&

Obsidian Energy: An In Depth Look At Obsidian Energy

Obsidian Energy is an oil and gas company based out of Canada. The company is listed on the Toronto Stock Exchange. At one time the company was called Penn West Energy. David L. French is currently the President and CEO of Obsidian Energy.

 

David French has been interviewed on numerous occasions by the Toronto Stock Exchange. Mr. French has stated that he is pleased with the amount of growth Obsidian Energy is experiencing and he feels the organization will continue to grow and prosper especially within the 2018 fiscal year.

 

Mr. French has been with the company for almost two years. In addition, he has previously been employed by Bankers Petroleum Company where he served as CEO. David French currently holds an Bachelor Degree in Mechanical Engineering from Rice University.

 

Obsidian has a strong commitment to nearby residents to keep them informed about any changes that may impact the environment. Changes impacting the environment are associated with gas and oil operations initiated by Obsidian.

 

Obsidian Energy has a variety of environmental programs that involve communication, resource conservation as well as site abandonment practices. This information is made available to the public.

 

The company has safety principals in place that guarantee the safety and well being of all Obsidian employees, family, friends as well as the public environment. All policies and safety procedures will at all times will comply with legislative requirements as well as compliance issues.

 

Obsidian Energy also enforces an Emergency Response Plan which involves employing safety measures while drilling for oil or gas within a specific geographic zone. Any and all companies as well as residents will receive advance notification of any scheduled drilling operations according to specific zones. Zones are numbered and recorded, they are kept in a permanent file.

 

Updated manuals are available for gas and oil pipelines in accordance with the National Energy Board Guidelines. Guidelines are updated on a yearly basis and can be viewed by obtaining permission to review relevant links. Read This Page to learn more.

 

Please see www.obsidianenergy.com. Safety data sheets can be viewed by logging on to the company web site.

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

Revamped Obsidian Energy Is Leaner But Stronger

Western Canada’s key petroleum producer Penn West formally changed its name to Obsidian Energy in June 2017. As the CEO, Dave French pointed out; they chose the name as an indication of its commitment to the pursuit of excellence and accountability in its services to customers, investors, and the community. However, the name change is only part of a major transformation process in the company.

 

Lesson from crisis

Penn West had thrived in the evolving sector for years since it began operations. The number of shareholders had risen to nearly 200 million, and its daily production stood at 135,000 barrels. Unfortunately, it experienced a financial crisis and accountability issues which almost caused an untimely death to the mid-size petroleum products producer. Instead of giving up, the stakeholders noted their lessons and began to redefine the firm’s operations and limits.

 

Game-changing resolutions

Between 2014 and 2016, the company took time handling its external issues. It reduced debts from $3 billion at the beginning of the period to $384 million in 2016. It also cleared the investors’ lawsuits that resulted from its integrity issues. At the beginning of 2017, the management began in-house reorganization. It culminated the process by game-changing resolutions which it shared with the shareholders. Refer to This Page.

 

Creation of Obsidian Energy

The proposal had five resolutions that would redefine the firm’s, management, share capital, executive compensation, accountability and scope of operations. Changing the name of the company from Penn West Petroleum Ltd to Obsidian Energy was also one of the resolutions. The management considered the change necessary as an indication of the organization’s paradigm shift. In June 2017, the shareholders voted in favor of all the recommendations.

 

Leaner but stronger

Obsidian critical focus is providing quality to its clients, shareholders, and investors. To achieve this, they narrowed the scope of their production from 30 areas to four. Consequently, daily production reduced by nearly 80% to 28,000 barrels. The number of employees and share capital was also cut down significantly. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff. According to, Obsidian Energy’s CEO, the company has reemerged leaner but stronger and more capable of handling the dynamics of the industry.

 

See: http://www.marketwatch.com/investing/stock/obe