On June 26, 2017, the Penn West oil and gas company voted to change the name of the company to Obsidian Energy, so as to reflect the overall restructuring of the company that has taken place in the last few years. The company is trying to rebrand itself and go forward in a new direction, so the name change isn’t surprising. They have gone through a significant amount of upheaval due to a large drop in the price of crude oil back in 2014. However, they have, in their own words, “reemerged stronger, leaner, and more capable than ever”.
Obsidian Energy is based in Alberta, Canada, and controls three main sources of oil and gas; the Pembina Cardium, the Peace River Oil Sands, and the Alberta Viking. All of these are located in the Western Canadian Sedimentary Basin, an area which is extremely rich in oil and natural gas reserves. It is said to supply a large portion of the North American market, though production in this area has changed drastically. In the past, traditional crude oil exploration was the norm here, but the companies in the area are now shifting their business strategy to focus more on natural gas and oil sands. As most of the reserves of oil and gas are to be found in Alberta, it is no wonder that Obsidian Energy has based itself there.Get Additional Information Here.
The new business strategy is based on quality over quantity. While they have downsized their crude oil production (from about 135,000 barrels per day to around 28,000), they have also reduced the number of their employees from about 1400 down to about 300. At the same time, they have shifted their focus to just four main areas of production, instead of the 30+ areas they were managing in the past. The overall picture is that of a company trying to reduce its overhead costs while maintaining a high level of quality and production, all the while focusing on quality rather than quantity.
Company President and CIO David French stated in a press release that 2017 would be a “new beginning” for the Obsidian Energy.