Top Highlights From Obsidian Energy

spcblog, 23 March 2018, No comments
Categories: business, Canada, Energy, Gas, Green Energy, Oil, Power

Obsidian Energy specializes in the production of gas and oil. It has invested in high-tech assets and technology that has a capacity of 30,000 boe every day. Obsidian energy argues that investing in the high-tech assets and technology was vital to help the company deliver top-notch results. Moreover, Obsidian is driven by the fact that the industry is rapidly evolving. Hence there is a dire need to gather all the necessary assets needed to keep up with the changing times. Obsidian operates on three core disciplines which are resolute accountability, relentless passion for work, and discipline to all its partners, shareholders, and communities where they operate.

 

Obsidian Energy, formerly Penn West Petroleum Ltd., on 26th June 2017 changed its former name. The reason for the change was due to the many changes that happened in the company. The numerous changes affected the operations of the business in various dimensions, and that was the core reason for the change of name. The new Obsidian Energy intends to pursue modest expansion for the next three years. The growth will be achieved by working on tight budgets based on the prices of gas and oil. In relation to the change of name resolution, the shareholders voted in favor of the motion with a percentage vote of 92%. See This Article to learn more.

 

David French, the Chief Executive Officer, explained that the firm chose the name Obsidian because it refers to a natural volcanic glass which can be honed and sharpened. For the past four years, the company had survived huge debts and had an accounting scandal that ended with a legal suit from its investors. However, the company was able to cut the debt tremendously by March 31st of this year. The current debt stands at a net of $384- million in comparison with the end of 2013 debt which was $3billion.Obsidian Energy is focusing on setting the company on foot by focusing on its four core production areas.

 

Also, Obsidian Energy plans to cut their labor expenses as a strategy to reducing the overall debt. So far, it has reduced its staff from 1400 to 300 within the same time frame. Still, the company has reduced the production levels from 135,000 barrels of oil to 28,000 barrels. Obsidian Energy’s oil fields are located in Alberta, along the Western Canadian Sedimentary Basin. This region is one of the world’s largest petroleum reserves.

 

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

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