The Obsidian Energy Company remained Penn West Exploration Limited until 26 June this year when it changed its name after lengthy consultation and approval by the shareholders. It is a mid-sized company with Canadian roots which exclusively deals with the production of oil and natural gas, and its located in Calgary, Alberta. Its situation was informed by the presence of oil and gas-rich fields. Obsidian’s oil production comes from three key areas in Alberta: the Alberta Viking, the Pembina Cardium and the Peace River Oil Sands.
As anticipated, this company reached its maximum market capitalization in 2008 when it gradually started declining from an estimate of $9.5 billion. Since then, the company underwent pressing difficulties in operation and financing of its activities when the oil prices dropped by a large margin. Due to this, it opted to restructure by selling most of its assets within the following two years.
To survive the company was compelled to apply several measures including the sale of assets, laying off some workers and cutting a significant level of production. The debt was reduced by such a considerable percentage from $3 billion to $ 384 million just through the sale of assets. It was a significant relief to the company thanks to their decisiveness. On the other hand, around 1100 workers were laid off with the firm retaining only 300 of them. Meanwhile, production got cut from 13500 barrels to 28000 barrels of oil, a day equivalent.
It is now a much manageable company, and since a new president and Chief Executive Officer, David L. French was given the mantle of leadership of the company, everything seems to be moving in the right direction. Obsidian is now in a better position and with the recommended number of assets as well as promising balance sheet.
Obsidian Energy is a very responsible company concerning community health, environmental conservation, and corporate governance. As for community health, it has a culture of communicating openly to its immediate community, acting promptly on issues of concern relating to their operations. As a matter of commitment, they have an email and a toll-free number through which they can get reached in cases of non-emergence questions regarding their services.
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Obsidian Energy is involved in the business of producing oil and gas with an asset base that produces about 30,000 boe per day. The company’s management, together with its asset base, provides the right medium for delivering positive results. Its core values revolve around discipline and passion, and accountability to its shareholders. It is a company that believes in community engagement and always strives to form partnerships with the communities within which they operate.
The firm was initially known as Penn West Petroleum Ltd but later rebranded to become Obsidian Energy in 2017. The company engages the local communities through their Community Matters program and aim at conducting responsible and respectful operations within such communities. It encourages its employees and contractors to engage openly with the local communities to address pertinent concerns that might arise as a result of their activities of producing oil and gas. It also strives to minimize the impact its activities have on the environment. It has set up environmental programs that aim to meet or exceed environmental rules and regulations, embrace communication among stakeholders including the adoption of proper site abandonment and reclamation practices. (Find Related Information Here.)
Safety is of key importance to the company’s activities. It has a wide range of safety programs aimed at cushioning and protecting its employees and the local community in general. These programs act as mitigating measures against environmental degradation and also for serious accidents. The company continues to adapt stringent safety standards, training, programs, awareness and employee and contractor safety. Obsidian Energy has the ability to respond to any emergency situation promptly and safely.
It maintains a comprehensive Emergency Response Programs in all its activities. These ERPs have been developed in collaboration with the local or volunteer emergency organizations and major stakeholders in the communities. This consultative approach is aimed at ensuring that the company’s procedures and responsibilities are clear in case of emergencies. These regulations and procedures are reviewed on a regular basis with the technical information and current stakeholders. These activities are shared to the local communities through awareness initiatives and response training programs with first responder groups and stakeholders.
Obsidian Energy is a power producing firm that creates finished quality oil and gas to users. It has a well-coordinated range of investment in the industry. In a typical day, it provides almost 30,000 barrels in a day. With all these assets, they combine and make the most out of it for profits.
The personnel working there are passionate about what they do having the discipline required for the extraction of quality energy that is needed by the population while protecting the environment. The management is also steering the company to the direction that is necessary for accountability with the stakeholders and in the surrounding community.
The Obsidian Energy was formerly known as Penn West Petroleum Limited, but the name was changed after approval by the leadership. The organization had undergone some modifications that required rebranding. The company is situated in Alberta in the Western Canadian Sedimentary Basin that has the most extensive stock of petroleum. Obsidian Energy produces the valuable produce in mines located at Pembina Cardium, Peace River Oil sands, and Alberta Viking.
In the year 2008, the company paid high dividends at an annual rate of 15% to 16% which were taken back to the company as investments. The shareholders of the company are people who understand whenever the company is facing problems, and that is why they voted in favor of the changing the name of the organization by 92%. In the next three years, Obsidian envisions a growth having a fixed price in the price of oil and gas.
According to Dave French, the name Obsidian Energy was chosen because of its meaning, naturally occurring volcanic rocks that can be modified; and so can the company. The assets sales have managed to keep the business running, and it is hopeful that more gains will be attained in the next financial year.
Dave French is also looking forward to getting more investors on board to take the firm to a new level and increase the marketing of the finished product. As a result, there will be more profits and steer the company forward would not be a hard task for the management.
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