Obsidian Energy Trust refers to a Canadian oil and natural gas production organization situated in Calgary, Alberta. Obsidian Energy Ltd for a long time was among the top 60 firms on the Toronto Stock Exchange and between 2005 and 201, it earned a Canadian Royalty Trust (CANROY). By January 2008, the company reached its peak market capitalization amounting to $ 9.5 billion.
The oil and gas fields for the company are situated in Alberta, one of the biggest petroleum reserves on the globe and production is in three main areas including Alberta Viking, Pembina Cardium, and Peace River oil sands. In 2017, it is projected that total production for the Obsidian will be roughly 31,000 barrels per day.
On June 26, 2017, shareholders approved to change the company’s name from Penn West Petroleum to Obsidian Energy Ltd. During its annual general convention, approximately 92% of the shareholders voted in favor of the name change. In addition to the name modification, the new stock symbol was replaced with ‘OBE’ on the Toronto Stock Exchange and the New York Stock Exchange. David French, the President, and CEO of Obsidian explained that the name ‘obsidian’ refers to a naturally occurring volcanic glass which can be sharpened or honed.
Following a significant decline in crude oil prices in 2014, Obsidian Energy has done significant restructuring in an attempt to restore the firm’s position on the Stock Exchange markets. According to the CEO, David French, the company was changing more than just its name to undertake an affordable growth strategy where spending budgets will be closely tied to the commodity prices. For this reason, the production was dropped from 135,000 barrels per day to estimated 30,000 barrels per day. Moreover, the personnel were also reduced from 1400 at the end of 2013 to 400 at the end of 2016. Read More Information Here.
Presently, Obsidian is on the right track with right assets, healthy balance sheets and an entrepreneurial culture that will enable it to thrive in the evolving energy sector even amidst lower prices. Besides, the organization is based on discipline, unwavering accountability to its stakeholders and persistent passion for the work it does.
More on: http://boereport.com/2017/06/26/penn-west-changes-name-to-obsidian-energy-ltd-and-announces-voting-results-from-the-2017-annual-and-special-meeting-of-shareholders/