Obsidian Energy is a Canadian-based public firm that deals in the production of oil and natural gas. It’s headquartered in Calgary, Alberta. It was formerly called Penn West Exploration. The company name was changed to Obsidian Energy on 26th June 2017.
Obsidian has oil and gas wells throughout western Canada specifically in Alberta along with Western Canadian Sedimentary Basin, an area that is characterized by its large petroleum reserves. The largest wells are located in the Alberta Viking, the Pembina Cardium, and the Peace River Oil Sands.
It is undeniably one of the largest companies that feature on the Toronto Stock Exchange. This is manifested by the fact that between 2005 and 2011, it achieved top market capitalization of approximately US $9.5 billion.
Just like every successful company, Obsidian Energy has faced several challenges for instance, in July 2014 the company’s Chief Financial Officer revealed accounting irregularities that had led to the misclassification of nearly $300 million. The company consequently faced several lawsuits from different investors in Canada and one in the United States of America. As a result, Obsidian Energy contracted the services of independent auditors to review its books and solve the accounting issues. Additionally, due to the decline of oil prices, the company was forced to reduce its workforce from 2,350 in 2013 to 300 workers in 2017and suspend paying dividends to its shareholders. It also had to reduce the compensation that it had set aside for its board of directors.
However, despite the fact that the company’s journey to success has been faced by these challenges, Obsidian continues to deliver strong production volumes and through the second quarter of 2017, robust funds have been seen to flow from their operations. In fact, the company expects to produce an estimate of 31,000 bbl per day in 2017. Learn More Here.
According to a statement by David French, the company’s President and Chief Executive Officer, the company will have a solid start since the company’s financials are balanced and very much stable thus putting them in a good position to manage the environment as currently constituted. He goes on to explain that they will continue to extend their investable projects for the development of Alberta and the intermediate world’s environment.
Learn More: https://en.wikipedia.org/wiki/Obsidian_Energy