The international oil and gas prices have caused significant challenges to many international companies operating on a significantly large scale. The oil price challenges were coupled up by serious macroeconomic issues that have afflicted the developed world for the better part of the time since the financial crisis of 2008 ensuring slow economic recovery. While many companies have opted to move out of business, Obsidian Energy has decided to soldier on banking on improved operational efficiency and the recently completed corporate restructuring that has since seasoned the financial outlook of the company.
Obsidian Energy has since shed off much debt that did not look good in light of the prevailing international prices. The management praised the restructuring as one that saw the company have an opportunity to refocus on itself top down as it sought to rebuild and strategically position itself in the market.
The Toronto Stock Exchange listed company has set its focus on modest growth and investments informed by the oil price trends. Its concentration is in oil exploration in Alberta, Saskatchewan and British Columbia regions of Canada. Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff. In 2015, Obsidian Energy made a significant announcement regarding its proven reserves worth two hundred million barrels of oil equivalents.
The significant challenges that hit the industry hard did not spare Obsidian Energy and after the restructuring the CEO Dave French proposed a name change from Penn West Petroleum to the current. Worth noting is that the name Obsidian is a volcanic glass that occurs naturally and has properties that allows it to be sharpened and honed while maintaining its strength and durability. On the occasion, Dave French was upbeat that the company is well positioned with the right mix of human resources, organizational capability and strategic assets needed to sustain growth even as the oil market prices do not look that good.
Obsidian Energy will in the meantime concentrate on developing most of its fields in Alberta. On the strategic front, Obsidian Energy aims to move forward with a high level operational discipline, enhanced accountability to all stakeholder more so shareholders and lots of passion for the work the company does.
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