Obsidian Energy Moves Past The Oil Price Crisis

Obsidian Energy is a Canadian oil producer that operates around the Calgary area. The company is a mid-sized producer that produces both oil and natural gas. Obsidian Energy was originally named Penn West Petroleum before changing its name in June of 2017.

Obsidian Energy operates wells in a number of areas. The company has wells in the Alberta Viking Area, Peace River, and Pembina Cardium. The company was known for paying out high dividends between 2008 and 2015 with average yields at about fifteen percent. The company faced the difficulties that plagued other oil producers with the 2015 oil price drop.

The company was able to do a number of things to move through these difficult times. It went through the process of shuttering a number of oil wells without suddenly firing employees. It was able to reduce its staff from over twenty-three hundred employees to less than a thousand. These cuts were largely from contractors and those involved with opening new wells. The company went onto reduce its staff by four hundred additional employees with most of the layoffs coming from its corporate office. This represented a thirty-five percent reduction in staff. These cuts allowed Obsidian Energy to avoid excessive debt during a time when many oil producers were going out of business. The company also reduced compensation to its board of directors during this time.  Visit This Page for more information.

Obsidian Energy has done a number of things to regain its business following a slow increase in oil prices. It has been able to open a small number of wells without over extending itself during a time when oil prices are still low. The company has been able to restructure its debts in 2014. This process involved going back and adjusting its predictions on future investments in light of its reduced overhead and lower oil prices. Obsidian believes that its new name and expanded production will allow for it to continue being a leader in Canadian oil. Obsidian Energy has resumed paying dividends after suspending them for a quarter during the oil price crisis.

Source: http://boereport.com/2017/06/26/penn-west-changes-name-to-obsidian-energy-ltd-and-announces-voting-results-from-the-2017-annual-and-special-meeting-of-shareholders/

 

Obsidian Energy Disposes Legacy Assets, Increases BOE Numbers

Canadian fossil fuel extraction firm Obsidian Energy enters 2018 with strong production numbers.

 

In January, the company reported that they were producing in excess of 32,000 barrels of petroleum per day and reported beating their extraction target of 31,000 per month for 2017. Obsidian Energy met and exceeded their 2017 goal, averaging 31,700 per month despite setbacks caused by severe Canadian weather.

 

The company expressed enthusiasm over last year’s 3rd quarter production with the Cardium project, the Alberta Viking site, with 2 out of the 12 Peace River wells under construction and the other 10 on production. Obsidian reports that Deep Basin drilling is delivering overall liquid rates at over twice the curve expectations for the wells’ types.

 

Additionally, Obsidian has made use of foreign currency exchange rates, hedging most of its foreign exchange exposure on their WTI hedges for 2018. Obsidian currently manages the AECO and Ventura, both CAD hedges.

 

In other disclosures, Obsidian Energy announced the disposition of several of the firm’s legacy assets.

 

President and CEO of Obsidian David French stated that the transaction moves the company forwards by regaining the Obsidian’s focus on assets that are currently providing economic benefit to their operation.

 

The deal, which took several months to close, builds on the company’s outstanding 2017 extraction numbers.

 

French adds that the disposition gives the Obsidian stronger financial flexibility and reduces its cost structure. Furthermore, speaking on behalf of Obsidian’s management, he expressed that the transaction continues to advance their transparent commitment to maximizing the firm’s value to the advantage of its shareholders.

 

The disposition resulted in a $25 million reduction in Obsidian’s discounted decommissioned liabilities. Additionally, 2018 netbacks are improved by nearly $1.50/boe, increasing the company’s liquids weighting to 65 percent as a result of the legacy transaction.

 

About Obsidian Energy

 

Founded in Calgary, Alberta, Canada in 1979, Obsidian Energy provides oil and natural gas extraction in the Western Canadian Sedimentary Basin.

 

The company currently employees approximately 300 and is managed by President, CEO David L. French. Find More Information Here.

 

Obsidian Energy is traded on the Toronto Stock exchange as TSX: OBE and in the United States on the New York Stock Exchange as NYSE: OBE.

Obsidian Energy Honing In On New Horizons

Obsidian Energy is a mid-sized Canadian oil and gas producer and has been in business since 1979. They’re main oil fields in operation, are located in the Alberta area, with they’re three main production sites being the Pembina Cardium, the Peace River oil sands, and the Alberta Viking. Obsidian’s gas and oil fields are located along one of the world’s largest petroleum reserves, the Western Canadian Sedimentary Basin.

 

Obsidian Energy was formerly known as Penn West Petroleum, beginning a whole new chapter in their operations. Penn West Petroleum officially changed their name to Obsidian Energy on June 26, 2017, with 92 percent total votes from shareholders being in favor of the name change.

The name, Obsidian Energy, is derived from a naturally occurring volcanic glass called, Obsidian. This material can be sharpened and carved into tools for many practical uses. Historically, Obsidian was carved and used as fine tools for surgical use, or for architectural design found in many Egyptian, and Mayan artifacts. Obsidian was often used as a surgical tool because of its strength, and often tools made of obsidian had a finer, cutting-edge many times sharper than high quality steel. This organic glass being a cutting-edge and innovative material, seemed to be a fitting name as the company considers their direction ahead. In a quote from Chief Executive Officer, David French, he says:

“.. We will guide the Obsidian Energy on three principles: disciplined technical and commercial decision-making to build and protect enterprise value, and relentless pursuit of progress and innovation,”

 

Obsidian boasts a hearty portfolio of high quality assets that produce roughly 30,000 barrels per day. For the year of 2017, Obsidian actually exceeded the projected production amount, which shows positivity for share prices. Obsidian’s AB Viking program continues to evolve development strategies to enhance economics and maximize efficiency — in which case causing the program to continue to exceed expectations. Read This Article for more information.

More on: http://calgaryherald.com/business/energy/restructured-penn-west-proposes-name-change-to-obsidian-energy

Obsidian Energy Adds a New Member to its Board of Directors

Obsidian Energy LTD has confirmed the appointment of Mr. Edward Kernaghan, a financial and capital market expert, to its Board of Directors. While confirming the appointment, George Brookman expressed that the management is excited to have Kernaghan on the Board. Currently the acting chairman of the Board, Brookman added that the new arrival not only brings with him a broad industry experience but also a tangible ownership stake in the company. He further explained that Kernaghan’s appointment is part of the company’s strategy aimed at building a competent human resource base required to drive the firm forward.

 

Mr. Kernaghan has equally commented on his appointment to Obsidian Energy’s Board of Directors. The renowned capital markets and financial expert expressed his excitement following the appointment adding that he’s ready to be part of the team that will drive the company forward.

 

Mr. Edward Kernaghan graduated with a BSc Honors degree from Queens University before earning his MSc in Theoretical Physics from the University of Toronto. He has worked in the financial services sector for more than 15 years. Kernaghan served in various top management positions prior to his appointment. Currently a managing partner at Kernaghan & Partners, he is a co-founder and has served as the executive vice president of Kernaghan Securities. Apart from being the president of Kernwood Limited, he sits on the boards of various TSX companies.

 

Obsidian Energy’s Board of Directors approves the 2018 Budget

 

While announcing 2017’s third quarter financial and operational results, David French confirmed that the board of directors has approved a budget of $135 million for the 2018 financial year. The president & CEO also expressed his pride in the company’s management team citing quality results during their busiest drilling campaign.

 

Based in Calgary, Alberta; Obsidian Energy, an Oil and Gas producer is reportedly pleased with its deep basin exploration. Its first foray is reported to have yielded beyond expectation and the firm now expects more in 2018. With the company announcing strong results in the third quarter, attention has now shifted to 2018. Its CEO has hinted that the company’s 2018 plan is both solid and scalable and that the year looks very promising as far as growth and development of the Obsidian is concerned.

 

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Choosing Products Through Obsidian Energy

Many people who buy fuel are finding that there are few companies they can go to that sell high-quality products at affordable prices. The reason for this is due to the higher costs of fuels nowadays, which makes it difficult and time-consuming to try to find a good company to sell these types of items. If you feel it is time to go with a better company, it is time for you to check out Obsidian Energy. Obsidian Energy has been in the business of gas and fuel products for well over a decade, and they work directly with suppliers so that they are able to get fuel items at lower prices so that they can also keep their prices as low as possible.

 

The company was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY).

 

By choosing Obsidian Energy, you’re choosing a company that puts the work and dedication behind them to get the job done. This is essential for when you want to keep costs to a minimum and know that there are a lot of different options available to you. By choosing Obsidian Energy, you are getting your fuel for a cheaper price without giving up on its quality. This simply means that you are still getting a high-quality product without needing to spend a small fortune on what you need for yourself.

 

Because of the work that Obsidian Energy has put into its company, it is no wonder that a lot of people have chosen them for their fuel and energy needs. You can feel good knowing that the company you’re choosing has your back and is offering a great product at an even better price. There is nothing quite like working with a reputable company and getting great prices on the fuel that you need for your own business or corporation. You can contact Obsidian Energy either by phone or email and find out more about what they are able to offer to you. Once you choose this for yourself, it is just a matter of getting the products that you need and spending the money that you want without it becoming too much of a burden. View More Information Here.

 

See Also: https://globalnews.ca/news/3481168/penn-west-proposes-name-change-to-obsidian-energy/