Obsidian Energy: Building Petroleum Wells in Western Canada

Canada occupies a huge territory, which is more than 9 million square kilometers, and it is considered as the second largest country on Earth by area. Because of the vast landmass that it occupies, oil and petroleum companies in Canada are rushing through its barren lands and trying to locate deposits of oil and petroleum. The western part of the country is rich in oil and petroleum deposits, and many companies are operating in these areas. Obsidian Energy is a Canadian oil and petroleum company that is headquartered in Calgary, Alberta. The company has been operating for several years, undergoing several brand name changes. They were previously known as Penn West Petroleum, and they have a huge number of oil and petroleum wells on the western side of the country.

 

In the past, Penn West Petroleum partnered with several drilling and exploration companies, and one of the areas that they surveyed before was the large mass of land in Western Canada. Penn West Petroleum invested in the project to find oil in the barren Canadian region, and after weeks of exploration, they succeed and located the oil and petroleum deposits. Penn West Petroleum immediately constructed their oil and petroleum wells, and extracted the resource underground. This discovery made Penn West Petroleum as one of the most valuable oil and petroleum companies in Canada, and they even made it to the top 60 companies, based on the Toronto Stock Exchange. Penn West Petroleum is able to produce 31,000 barrels of oil per day, and the business was doing great for them. However, oil prices went down in 2014, and this left a huge impact on Penn West Petroleum.

 

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From being a $9.5 billion worth company, Penn West Petroleum started to devaluate. They had to forcefully lay-off thousands of their employees, and their stock market value plummeted. The company also had to go under a restructure and rebranding process, changing their brand name from Penn West Petroleum to Obsidian Energy and reshuffling their company organization, making David L. French the current president and CEO. David L. French admits that Obsidian Energy is facing a number of challenges currently, but he believes that the company can get through it.

 

See: https://en.wikipedia.org/wiki/Obsidian_Energy

Canadian Oil And Gas Company Obsidian Energy

Located in Calgary, Canada, natural gas and oil production company Obsidian Energy was previously known as Penn West Petroleum before it underwent a name change in June of this year. The mid-size energy company is led by President and CEO David L. French, and has around 300 employees. Its oil and gas fields are located in Alberta, which is a city that has one of the world’s largest petroleum reserves. The business is one that has been in operation for over 30 years but has gone through a few name and board member changes.

 

The company is traded on both the Toronto and the New York Stock Exchange as OBE, and is considered to be one of the Toronto area’s biggest companies. Through their Community Matters program, the leaders of the business work to make a positive impact on the communities they serve by encouraging their employees and contractors to have an open dialogue with the residents to address any concerns they may have about the service or possible dangers that may occur.

 

Obsidian Energy also looks into ways to try to minimize the effects the company’s operations have on the environment, and they have safety programs that are aimed at protecting the company and its employees, as well as the public. In an interview that CEO David L. French had with the Toronto Stock Exchange, he expressed that he is proud of the excitement and the enthusiasm within his company. He also said that the business has been through an extraordinary transformation, and that Obsidian continues to be a good opportunity for investors.

 

Obsidian Energy is looking to expand in many ways, and is currently seeking out more opportunities to do so. They offer all employees a competitive salary, along with a great benefit package, and they are committed to providing their customers with continuous good service that includes adequate communication and immediate action when it comes to energy-related concerns or issues. Customers can contact them by using their toll-free number, as well as their email address, if they have questions about issues that are of a non-emergency nature.

 

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The Re-branding Of Obsidian Energy

This is a company that produces both natural gas and oil and it is located in Calgary, Alberta. Previously it was known as Penn West Exploration Ltd. The current identity, Obsidian energy name was given by the stakeholders of Penn West Exploration Ltd who voted 92% for the sake of resolution. The name was given since Obsidian is a volcanic glass that occurred naturally and also was easy to sharpen and hone it as explained by the CEO of the company Dave French. According to Toronto stock exchange, it ranked top 60 companies in the market.

 

Obsidian investment report

It paid higher dividends to its shareholders which brought an increase in annual rate ranging from 15% and 16% at the beginning of the year 2008. On that, it gave a relative frequency for equities which were shortlisted in the New York Stock Exchange. Since the collateral security is viewed as a palatable resource, the dividends given to the stakeholders are not taxed at normal dividend rate, but it is handled as return on investment instead of return on capital and this is an added advantage to the United States and it is applied to all loyalty trusts.

 

Financial Accounting problems

In the year 2014, the company employed a financial officer who in his financial analysis, came up with a report showing how the company’s financial accounts were being mishandled and this lead to a misclassification of almost $300 in expenses. Obsidian Energy had reduced its workforce to almost half from the year 2012 to June 2014. It realized a profit of $143 in the second quarter of the year 2014 which was a representation of 29% per share capital. The company reported that results showed that there were accounting irregularities summing up to $381million in the year 2013 and 2012. After getting support from auditors who they contracted, they revealed that $70million used in operating was reclassified as capital expenditure on stuff like plant and equipment.

 

Economic problems

From the year 2013, Obsidian Energy started to face a reduction in the number of employees from 2,350 to a minimum number of 1,000 employees. Due to the reduction in the price of oil, the company decided to reduce 400 full-time workers and contractors basically from the main branch which is a representative of 35% of all workers in that company.

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