Obsidian Energy: Recovering from the Ashes

Penn West Petroleum had to restructure their organization, and the newly elected officials of the company have decided to change the name of the business to Obsidian Energy. The new name of the company was formally introduced last June 26, 2017, and the newly elected officials lead by David L. French stated that they will be working hard to become one of the top companies in Canada once again. The medium sized oil and petroleum manufacturing company is currently headquartered in Calgary, Alberta. It was not always like this for Obsidian Energy, because in the past, they managed to break records and was recognized as one of the most profitable companies in the country.

 

During the times when the company was still referred to as Penn West Petroleum, they managed to get through the top performing companies in the Toronto Stock Exchange. There was even a time when they posted a record value of $9.5 billion, and investors kept on pouring in their money so that the oil and petroleum manufacturing company can acquire new wells for exploration. However, the overproduction of oil and petroleum in 2014 led to the company’s demise. They started to experience the ill-effects of their product’s price crash, and the first people to become affected are their workers. Penn West Petroleum had to cut the number of their employees from 2,500 to only 300. That way, they stated that they can still save a lot of money.

 

Now that they have undergone drastic changes, Obsidian Energy is hoping that they will be able to repay all of their debts and become a performing company once again. Obsidian Energy managed to leave a lot of oil and petroleum wells in Western Canada. Under the orders of David L. French, the remaining employees of the Obsidian started to map their wells, trying to uncover where the remaining resources are. After exerting too much effort in locating the resources, Obsidian Energy successfully found an active deposit under their ownership. David L. French immediately ordered the extraction of oil from the well, and the new discovery provided a 31,000 barrel of oil and petroleum gathered per day.

 

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