Penn West Exploration Ltd. was founded in Alberta, Canada, close to 38 years ago. Along the way, the oil and gas drilling company changed its name to Penn West Petroleum and later to Penn West Energy Trust. Earlier this year, the company rebranded again to its current name- Obsidian Energy Ltd. The company has a strong presence in Western Canada, owning a majority of natural gas and oil wells in the region. Records show that Obsidian Energy Ltd. is among the bigwigs in the Toronto Stock Exchange with its worth estimated at $US 9.5 billion over a decade ago. Although the instability in the global oil market that was experienced three years ago greatly and negatively affected Obsidian’s annual revenue, the company was able to bounce back and is currently doing well. Records show that the company was able to settle all of its debts incurred during that period.
The Ups and Downs
Among the key factors that have seen Obsidian Energy Ltd succeed in the competitive global oil market is the strategic positioning of its wells. The study shows that Western Canada is rich in petroleum and natural gas products, particularly in Peace River, Pembina Cardium, and Alberta Viking. Going by statistics for the year 2017, the company’s oil fields have an average daily production rate of more than 30,000 barrels.
In 2008, formerly Penn West Energy Trust – Obsidian Energy Ltd was doing extremely well on the New York Stock Exchange. Dividends from its equities were going for up to 16% in annual rates. Its workforce, on the other hand, was of about 2350 people. It was between 2012 and 2014 that the company was hit by the reduced oil prices in the world, prompting it to reduce personnel to slightly less than 500 people. Obsidian Energy Ltd is now back on its feet and is expected to get back to its earlier financial position in coming years. Click Here for Related Information.
David L. French is the reigning president and CEO of Obsidian Energy Ltd. He is the man who effected the rebranding of the company after taking over in October last year. Top on his to-do list is to get the company’s production levels back to the 135,000 barrels per day it used to produce several years back.