Obsidian Energy went by different names such as Penn West Petroleum, Penn West Exploration as well as Penn West Energy trust, in its previous incarnations. At one time it had reached a market capitalization of nearly $9 billion, making it on the list of top 60 companies listed on S&P/TSX. Most of Obsidians oil and gas fields are in Alberta, on what is known as the Canadian Sedimentary Basin. This area is recognized to be one of the most petroleum-rich areas in the world. This year the company is expected to produce a little over 30,000 BBL/day.
By giving the company a new name, it also symbolizes a new set of values that will drive the company moving forward. These philosophies include implementing the latest technologies, more accountability, transparency with shareholders and a disciplined approach to the commercial and technical decision-making process. Shareholders will be happy to know that Obsidian has a sensible hedging strategy, good balance sheet, and assets that will keep the company strong during lower oil prices. Apart from these changes, Obsidian Energy made changes to the way they operate with the consent of their shareholders.
These include electing eight new directors and putting Ernst & Young LLP in charge of auditing for the following year. The eight new members will hold their positions until successors are appointed. Other matters that were put up for vote include executive compensation, approval for the name change, and approval for share capital reduction for accounting reasons.
The CEO of Obsidian Energy is David French who has many years of experience in the petroleum field. He joined the company in 2016 and prior to that worked as CEO of Bankers Petroleum LTD and proved his leadership skills by improving the growth of that company. Prior to working for Bankers Petroleum, he worked in various high positions in companies such as Apache Corporation and McKinsey & Co. Mr. French will continue Obsidian’s commitment to extracting petroleum products in a safe an responsible way. This includes employees, the environment and the communities in which the companies operate in.