Obsidian Energy is a mid-sized company based in Calgary, Alberta. It deals with gas and oil production. Before, the company was known as Penn West Petroleum Ltd. It changed the name in June 2017 after it underwent major changes that changed every aspect of business in the organization. These changes were as a result of the drastic drop in oil prices experienced in 2014. The change made the company experience difficulties, both financially and operationally. The company had a very big debt and to cover the debt they sold a lot of assets which led to a restructuring of the company. The resolution to change Penn West to Obsidian was voted in favor by 92% of the shareholders.
Dave French, the company’s CEO, explained that they choose the name Obsidian as it is a glass that occurs naturally and, can be sharpened and honed. Apart from selling the company’s assets, the company also reduced its production areas from over thirty to four primary areas. It also reduced the number of employees from 1,400 to 300. The changes redefined the company and they have come out more capable of learning and stronger. Obsidian Energy is smaller when compared to Penn West. It has a forecast production of 28,000 barrels per day while that of Penn West’s was 135,000 barrels per day. It is set with enough assets, a well-planned strategy and a healthy balance sheet that will help it set performance standards even in the environment of low prices. See This Page for additional information.
Along with the approval of the name change, other changes that took place include: appointing a new auditor, approving the reduction of share capital for accounting purposes, electing new directors, approving the restricted share plan unit and passing the advisory resolution to approve company’s approach to executive compensation. In the past three years, Obsidian has used assets of worth $2.3 billion to improve it’s the operational and financial performance. This has greatly helped it eliminate the high number of challenges that were stopping the company from performing efficiently. As the company heads down to this new path, it is guided by the passion of what they do, discipline and accountability to the community they operate in, its shareholders and partners.