As part of its restructuring strategy, Penn West Petroleum changed its name to Obsidian Energy. This announcement come as the company was planning on how to enhance its market share. The company’s business has been severely hit by three years of low commodity prices.
David French said that the name change would have to be approved by the company’s shareholders before it becomes effective. According to the new chief executive officer, the new oil and gas company no longer resembles the previous one. It has drastically revolutionized its operations and management. He added that this year marked a new beginning for Obsidian. Recently, David was mandated with the duty of spear heading the changes.
Penn West’s problems began in 2014 when an audit discovered that millions of dollars in expenses had been classified wrongly. This discovery saw the company redo its financial reports dating back to 2012 and as recent as the first quarter of 2014. Following the scandal, several investors sued the company. The lawsuits were settled in 2016. During the same period, the company was forced to sell its assets to clear debts amounting to over $3 billion. The sale has seen the debt owed by the oil and gas company fall to over $384 million by the end of March 2017. Refer to This Site for Additional Information on the company.
The company’s size has drastically reduced. Its oil production has fallen from over 135,000 barrels of oil per day to just over 28,000 barrels. Its employee base has also reduced. In the beginning of 2014, the company had 1,415 employees, this reduced to 407 at the beginning of this year. From these statistics, it is clear that the current company is not the old Penn West Petroleum. However, the management of the new company, Obsidian Energy has vowed to enhance its productivity and profitability margins.
About Obsidian Energy
Obsidian Energy Ltd is a mid-sized Canadian oil and natural gas production company. The corporation is based in Calgary, Alberta. The company is listed in the New York Stock Exchange and Toronto Stock Exchange (TSE) as OBE. It is the 60th largest company on TSE. Notably, Obsidian Energy’s predecessor was founded in 1979 in Calgary to explore oil fields in West Canadian Sedimentary basin.