Obsidian Energy is an intermediate-sized oil and gas producer formerly named Penn West Petroleum, Ltd. The company voted to change its name on June 26, 2017. Along with the name change came company restructuring. One major change was the reduction of its daily production. Today, Obsidian Energy produces 30,000 barrels of oil equivalent (BOE) daily.
Before the name change, they were producing up to 135,000 BOE daily in 2013. The company also employed 1415 people in its workforce. After the restructuring that number was reduced to 407. The company was further burdened with over $3 billion of debt. They have worked diligently to reduce the debt load and it is currently down to $384 million and still lowering. Refer to This Article for more information.
Today, Obsidian Energy‘s assets are more strategically placed. The company has three main sites in Canada. The Alberta Viking site is a wholly owned field that yields light oil and gas from short cycle wells, which contrasts with their Cardium drilling. The Alberta Viking production amounts to 1,766 BOE daily. The Cardium drilling uses waterfloods to increase reservoir pressure thus increasing the light-oil production. The production at Cardium equals 18,876 BOE daily. Peace River is a joint venture between Energy and China Investment Corporation and Obsidian Energy. Peace River is a large resource with years of production still to come. The daily crude oil production for Obsidian at Peace River is 4,823 BOE.
Obsidian Energy redefined their company to encourage share holder confidence. By becoming a lean and discipline operation, they have become more financially stable and are still a very profitable business. During their drilling, Obsidian Energy strives to preserve the environment. It is committed to minimizing the impact their operations have on the environment. By using established environmental programs, Obsidian tries to meet or exceed all environmental regulations and resource conservation. Encompassing every area of business, when a site is being abandoned Obsidian is always sure to use proper site abandonment and reclamation practices.