Obsidian Energy is a Canadian firm that used to go by Penn West Petroleum. They had some difficulties over the past few years, especially due to the lower value of a barrel of oil. They unfortunately had to lay a number of people off, like many companies in the industry did, but the result was a company that is now the right size to do business in the future.
As Obsidian Energy is a publicly held mid-sized company they had to get the approval of shareholders to change their name. 92% of shareholders voted for the name change and so in June 2017 the new name was put into effect. The chief executive officer of this company, Dave French, said that the reason why his team chose this name was that Obsidian is a type of glass that can be both honed and sharpened which is what he wants to achieve with the company.
Before the change in name Dave French had to get the company to the right size beyond doing layoffs. He achieved this by greatly decreasing the number of production areas his company was active in. They had been in 30 different areas but some of them had marginal amounts of oil that didn’t really make them very productive. The company now has four productive areas where they obtain oil and natural gas.
Today, Obsidian Energy produces around 28,000 barrels of oil each workday. They are based in Calgary; Alberta and it is in that Canadian province that they work oil fields. They have claims in the Western Canadian Sedimentary Basin. This basin has been proven to be one of the globe’s biggest petroleum reserves which is why Obsidian concentrates on it. In addition to drilling for oil, they also process oil sands to extract the oil from it. Find More Information Here.
The front page of Obsidian Energy’s website says that the company has started a new chapter. The company has been transformed and they are entering a new era where the company will be stronger and more efficient. They expect to achieve measured growth in the future by following their new business strategies.