Penn West Exploration Ltd. Re-brands to Obsidian Energy Ltd. to Restore Its Lost Glory

Obsidian Energy Ltd. is an intermediate-sized Canadian company that specializes in the production of oil and natural gas. This company was until 26 June 2017, labeled as Penn West Exploration Ltd. and it is located in Calgary, Alberta. For sometimes, it was ranked among the sixty largest companies at the Toronto Stock Exchange, and as such it falls into the category of S&P/TSX 60. Obsidian Energy remained a Canadian royalty trust (CANROY) between 2005 and 2011 reaching peak market capitalization at the beginning of 2008 with nearly US $9.5 billion.

 

After changing its name, Obsidian Energy has put plans in place to pursue modest growth in the next three years by tightly tying its budget to the oil and gas prices. The process of changing the name of this company was subjected to a vote where 92 percent of the shareholders voted in favor of the name Obsidian Energy. According to Dave French, the Company CEO, the name Obsidian was chosen for this company because obsidian, a naturally existing volcanic glass, can possibly be sharpened and honed.

 

The company was hit by financial hitches in 2014 when the price of crude oil hit a record low. Consequently, the company was severely restructured and the majority of its assets sold to reduce the debt. The oil and gas fields of Obsidian Energy are found in Alberta, and more specifically within the Western Canadian Sedimentary Basin, a region known to be among the largest petroleum reserves in the world. The fields are located in three key areas including Alberta Viking, Peace River oil sands, and Pembina Cardium.

 

In 2017, the total production Obsidian Energy Ltd is estimated to be averaging at 31,000 bbl per day. In early 2008, it paid dividends that yielded an annual rate of 15-16%. Additionally, the company paid out monthly, which is not common with the equities the New York Stock Exchange-listed equities. Because Trust’s assets are always considered to be depletable resource, the dividend payments are taxed as a return of capital and not return on investment. This gives an additional tax advantage to the U.S., and it is the same for all the other royalty trusts.

 

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Obsidian Energy, Ahe Acme Of Oil And Gas Production

Obsidian Energy is a Canadian based company that rebranded from Penn West petroleum on 26th of June 2017. As a result of the changing, the Calgary – Alberta based, mid-sized oil and the natural gas company underwent major restructuring which actually paid off a great deal.

 

The company has its field based in Alberta, which is known for having some of the largest oil reserves in Canada. Some of the areas that the company acquires its oil and gas from include the Peace River Oil Sands, the Pembina Cardium, and the Alberta Viking areas. To date, the oil company has created about 300 jobs and if they keep up with the hard work, the number is highly likely to increase in the near future.

 

In order to ensure that everything is running as smoothly as possible, obsidian has got a team of motivated members in its management. Some of the notable members of the management team include the CFO David Hendry, the CEO and President as well as Vice President Tony Berthelot among others. And with their extensive experience, the management team have managed to make obsidian energy what it is today – a success story.

 

Apart from focusing on the provision of high quality, low-cost fuel to its esteemed clients, obsidian energy has also tasked itself with keeping the environment clean and safe. Through their effective community matters program, they have managed to infiltrate the community through their highly trained employees and discuss on matters affecting the environment.

 

And together, they come up with solutions on how to better the environment. Obsidian Energy also work around the clock to ensure that they are abiding by the environmental regulation policies which include proper site abandonment and reclaiming. They also have a direct email that members of the community can feel free to use if they want to get in touch.

 

And thanks to its high-quality assets and a highly trained, disciplined and focused team, it has managed to get well over 30,000 BOE per day. With this kind of output and clear accountability to its shareholders, Obsidian Energy is sure to have a bright future in the oil and gas business.

 

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