OBSIDIAN ENERGY; AN OIL COMPANY RE-EMERGES STRONGER

Obsidian energy, formerly Penn West Petroleum Ltd is an intermediate Canadian company dealing in the production of oil and natural gas based in Calgary, Alberta. The location of the company is well known for large petroleum deposits. The shareholders of the company overwhelmingly approved a change of its name in June 2017, adopting the name Obsidian Energy. The firm found the name appropriate, primarily because it is a naturally occurring volcanic glass.

The change of name got accompanied by other significant changes which have redefined several aspects of the business of the company. The move has redefined the company, and it is now ready to take an exciting new path.

 

Obsidian Energy not only cares for its profits but also for the community and the environment. The company is committed to caring for its environment and takes into account the impact of its operations on the environment. The company is committed to the observance of the set regulations on environmental conservation. They undertake various measures to achieve this, including efficient stakeholder communication and reclamation practices.

 

The company is also committed to safety and health which it takes to be integral in its activities. Enough health and safety measures are targeting both the employees, families and the entire company. It is also committed to continuous improvement of its safety standards and programs.

Obsidian Energy recognizes the need for having an emergency response plan. There are comprehensive emergency response plans for all the operations of the company which have been developed in consultation with major stakeholders such as the communities in which the company operates. Check Out This Article.

 

Corporate governance is a crucial aspect of any progressive company. Obsidian Energy appreciates the impact of good corporate governance practices and works diligently to ensure the interests of all stakeholders got promoted. There are enough mechanisms to ensure that the company maintains good corporate governance.

 

Obsidian Energy Ltd is now producing roughly 30,000 BOE per day. Obsidian has returned to profitability in 2017 with a generous cash flow to back up those profits. Not only did Obsidian post a profit in the first quarter, but funds flow from operations was C$.11/share. Annualized, that would mean the fund’s flow is C$.44/share.

 

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

For Obsidian Energy Smaller Is Better

On June 26th of this year, Penn West Petroleum Ltd. became Obsidian Energy. The name change is part of a restructuring necessitated by a dramatic decrease in crude oil prices in 2014. Over the course of the last two years, Penn West had been selling assets as part of a debt reduction strategy.

 

Now a smaller company, Obsidian falls somewhere between Canada’s largest and smallest oil producers. In May production projections placed Obsidian’s’ daily output for this year at close to 30,000 barrels of oil equivalent (BOE). Obsidian currently employs 407 people.

 

Headquartered in Calgary, Alberta Obsidian has been in operation for 38 years. The Western Canadian Sedimentary Basin (WCSB) is the site of Obsidian’s oil and natural gas fields. This year the WCSB should yield around 31,000 BOE daily. The Pembina Cardium, the Peace River oil sands, and the Alberta Viking are the main areas for natural gas and oil production within the WCSB.

 

Obsidian controls the Esther area of the Alberta Viking. That area contains light crude oil and natural gas. The Esther area nets 1,976 barrels of oil equivalent daily. A good cost of production to retail value ratio and the use of shorter cycle wells are what makes Obsidian’s efforts in the Alberta Viking profitable.

 

In Cardium, Obsidian Energy employs a water flood platform to harvest 18,430 BOE daily. As the term suggests, water flooding utilizes the force of water to bring oil to the surface. This method increases production and results in a more stable rate of production.

 

Obsidian has partnered with the China Investment Corporation to form the Peace River Operated Partnership (PROP). Currently, PROP takes 4,928 BOE out the Peace River oil sands every day. Oil that comes from sand is normally thicker, making the use of heat necessary to bring it to the surface.

 

The viscosity of the Peace River oil is thin enough that cold-flow production can be used. Not having to use heat means the oil can be produced at a lower cost. That lower production cost and the area’s potential to produce oil for years bode well for future profitability.

 

Find Related Information On This Page.