Obsidian Energy is a Canadian oil and natural gas company with its headquarters in Calgary, Alberta on the Western Canadian Sedimentary Basin. This Basin is known as one of the world’s largest producer of petroleum services. Alberta has three major surrounding areas: The Pembina Cardium, Peace River Oil Sands, and Alberta Viking. All production from these areas were estimated to a little over 31,000 bbl per day. June 26th of 2017, Penn West Exploration LTD. (formerly Penn West Energy Trust) changed its name to Obsidian Energy. This decision was made by 92 shareholder votes after the CEO, Dave French, proposed the meaning of the name Obsidian that is a naturally occurring volcanic glass that can have its shape manipulated.
The Toronto Stock Exchange named Obsidian Energy as the 60th largest company. Between the years of 2005-2011, the company reached the maximum within the market capitalization with earnings of about $9.5 billion in January of 2008.
Because of operational and financial difficulties from the oil prices dropping at a rapid pace in 2014, the company decided to make some reconstruction changes by selling majority of their assets over the course of two years following to recover from the debt.
For the next three years, Obsidian has planned for a modest growth by keeping the spending budgets closely aligned with the price of oil and gas.
In the beginning, when the company was named Penn West, the company was met with several accounting scandals and high debt levels. Because of these problems, there was a class-action lawsuit taken out by the investors that were settled in 2014. Get Additional Information Here.
When the assets were sold, the debt for the company was reduced to $384 million in 2014 from the close to #3 billion they had accrued by the end of 2013. The company decided to not just focus on four production areas, but close to 30 instead. Besides the assets being sold, the company also reduced its employees from the 1,400 to 300 and cut oil production from 135,000 to 28,000 barrels.
See Also: https://www.obsidianenergy.com/