The Canadian based oil and natural producer, Obsidian Energy, Ltd., formally Penn West, has remained brilliant and resilient through smart business practices and changing with the times. In western Canada, there lies the West Sedimentary Basin which is approximately 540,000 square miles, one of the world’s largest petroleum reserves, including Alberta, where Obsidian Energy has its wells. The drop-in oil prices from 2014 caused many energy corporations to reinvent themselves. Obsidian has wisely based their new business model, both now and for the future, around discipline, relentless passion, and accountability.
They have invested in some new land, with new wells and all have been productive and profitable even right through this past cold holiday season. Today’s Companies have to look and plan everything about pricing and moving their product line well ahead, looking from four to even six quarters into the future. Petroleum products are transacted on a variety of markets worldwide, so all currencies must be converted and considered to make any investments or returns both visible and actionable. They waste nothing, they account for everything and conduct business in the smartest, most responsible way possible. They are a mid-sized company, producing over 30,000 BOE (Barrels of Oil or Equivalent) per day on average.
The new company, Obsidian, is so named after the naturally occurring glass formed from volcanic activity when molten rock cools quickly. It represents something newly formed from what was. It’s very strong, extremely useful, beneficial, with many applications in the past as hunting and carving tools well as today in the medical field because of its superior sharpness. Obsidian is presently listed on the Toronto Stock Exchange, the TSE, as the symbol OBE.
Obsidian Energy plans to further develop their water-flooding business, as more than half of those assets are not yet near maturity. Water flooding is a secondary recovery practice involving injecting water into an existing well to displace residual oil. Past, present and future investors and shareholders are looking forward to a great percentage of growth during the next four to five years from the company’s present new prospects, practices, and direction. Refer to This Article for related information.