Obsidian Energy Ltd is a Canadian oil and natural gas company located in Calgary, Alberta. It was founded in 1979 initially bearing the name Penn West Exploration limited or Penn West Energy Trust.
Being a located in one of the largest oil reserves in the world, Obsidian Energy has three production areas namely; Pembina Cardium, Alberta Viking, and Peace River Oil Sands. It has about 300 employees.
In the early 2000’s Toronto Stock Exchange ranked it the 60th largest company. Though it had risen to a peak market capitalization in 2008 was about $9.5 billion, it underwent a downfall when crude oil prices dropped in a big way in 2014. This affected the company both financially and also in terms of operations, making the company to sell most of its assets.
Obsidian Energy has been in the process of making a major transformation for more effectiveness in their operations. This started after the company’s shareholders approved of the changing of the company’s name from Penn West Energy to the current Obsidian Energy. This happened in June 2017.
The company has put in place three guiding principles which encompass around discipline, decision-making, responsibility, innovation, commitment to the mission, accountability transparency, and healthy working relations. The company has also ensured that they have the right assets in place, streamlined account records and the right strategy, which will enable the company moves forward. These have been steered by the Obsidian Energy CEO and president, David French, who took office in October 2016. Get Additional Information Here.
All this is happening after the company realized in July 2014 that there were financial irregularities in between 2012 and early 2014. the financial records for the 3 years had to be restated as a result. Obsidian had accumulated a lot of debts by this time and selling some assets and reducing the number of employees was the only way to help reduce the debt which was around $3 billion.
In 2013 the company had over 1400 employees and more than production areas. It has reduced its debt significantly, remaining with only $384 million. Now that the company is on its feet again, though only focusing on four main production areas, there seems to be much hope.