Obsidian Energy is a mid-sized Canadian oil production company that is found in Calgary, Alberta. Obsidian Energy Ltd., initially known as Penn West Petroleum, has undergone significant restructuring and has transformed thus emerging stronger, leaner and ready with enough potential for substantial growth towards a brighter future with its president and CEO is David French.
At the Annual General Meeting of shareholders, several of the company’s executives admitted to being accountable for financial irregularities experienced, and this was deemed as a major blow to the stability of Obsidian Energy.
The Penn West Petroleum Ltd. decided to change its name after it suffered a serious debt crisis in the past three years. This scandal led to lawsuits from its investors which were settled last year although it foresaw the company selling many of its assets for it to be able to repay some of its debts to the various investors.
An overwhelming majority of its shareholders, about 90% voted in consent to the change in name to Obsidian Energy, and its major plans are to go after modest growth shortly. As the CEO declares, Obsidian is a naturally occurring glass that can easily be sharpened hence they decided that this name was the best as it related to their course. It is a young company that is set and ready to develop into a brighter future.
In 2014, July, Penn West declared that most of its resources had improperly classified thus this contributed majorly to the declaration of the company’s insolvency, but this has been changed over time and resources allocated majorly to the production of oil. It currently produces only 28,000 barrels of oil and has only about 407 employees thus it has reduced its scale of production.
All said and done; it is now crystal clear that the irregularities that the Penn West Cp. Ltd. experienced made the Obsidian’s production levels to drop significantly but after the change of its name to Obsidian Energy Ltd., all is set to be well with major advancement aims for 2018 under its new CEO and President, David French. It is set to gain back its market value. Go Here To Learn More.