It’s clear that Pen West Petroleum Ltd is now Obsidian Energy. After going through a crisis in 2013, a change of name is among the major decisions that the management of Penn West Petroleum has taken to see them bounce back and claim the reputation of being a Canadian oil giant. The management is promising new changes in the company’s structure to meet the demand of energy in Canada. After deciding on the new name, the management embarked on the process of reducing the net debt.
In 2013, the debt stood at $3 Billion, and recently, the company announced that the balance had dropped to $384 Million. Obsidian Energy is also focused on improving service delivery. This has seen them make adjustments in the barrel production and workforce. They have opted to go small in the beginning as the new measures are enforced before widening their market countrywide. In a few years to come, Obsidian Energy is planning to become a major oil giant in North America.
Since its founding in 1979, Penn West Petroleum has gone through different developmental phases. Before crude oil prices fell maximally in 2014, Penn West Petroleum was making its mark in the gas and oil sector. In fact, the company is recorded to have accrued $9.5 billion as at January 2008. The crisis saw the company go through a restructuring process. Among the adjustments included the downsizing of the workforce and a reduction in oil production volume. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff.
This move has seen Obsidian Energy’s revival in the Canadian energy sector. With the oil field of the company in Alberta, they are aiming at stepping up oil production in the next few years. This year’s overall oil production is estimated to be 31,000 bbl. Under the leadership of David French, the company’s CEO, Obsidian Energy is on course to reassert its dominance in the Canadian oil and gas industry.
The management of Obsidian Energy is very optimistic about the latest developments. The new face is determined to deliver quality energy provisions and service to the Canadian market. With the structures already in place, it’s just a matter of time before Obsidian energy reclaims its throne.
Visit This Page for additional information.