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Obsidian Energy Taking The Oil Industry On Another Level

Obsidian Energy Ltd., an oil and natural gas was founded in 1979 with its headquarters in Calgary, Alberta, Canada which was previously known as Penn West Petroleum Ltd. From 2005 to 2011, the company was a Canadian Royalty Trust and reached a peak market capitalization in January with a north worth of about $ 9.5 billion. Obsidian Energy Ltd. faced a challenge with financial status in 2014 when crude oil pieces fell immensely. As a result, the firm had to sell the majority of its assets for the following two years to cut off on debts.

 

The firm’s location favors its business as it is found along Western Canadian Sedimentary basin which is among the world’s most extensive petroleum reserves. Their production is supplied from three primary areas in Alberta which include the Peace River Oil Sands, the Pembina Cardium and the Alberta Viking. In 2017, records show the average total production is 31,000 bbl. per day.

 

Penn West Petroleum Ltd. changed its name to Obsidian Energy on 26th June 2017. After surviving three years of an accounting scandal, commodity price crash and debt crisis it decided to change its name. David French who then took over as the CEO stated that shareholders were asked to approve of changing because it was a new company thus a unique name that does not resemble the old Penn West. See This Article for related information on the company.

 

This change was a transformation for Obsidian Energy, and it would run under three principles which include the relentless pursuit of progress and innovation, disciplined technical and commercial decision-making to build and protect enterprise value and accountable and transparent efforts with shareholders, the communities, and partners.

 

David French added that Obsidian Energy consists of right assets and an incredible hedging strategy that allows the firm to set measures for better performance in lower price environments. Some of the other resolutions that were approved by shareholders were an appointment of the auditor, election of directors, non-binding advisory vote on the corporation’s approach to executive compensation, approval of the reduction of share capital of accounting purposes and approval of an amendment to restricted share unit plan. Obsidian is positive about taking the oil industry to another level with its new transformations that will benefit the Canadian market.

 

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

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