Renewal Of Penn West Petroleum Ltd In Producing Obsidian Energy
The currently known Obsidian Energy Limited company is mid-sized as it concentrates on the manufacture of Canadian oil and natural gases. The location of the firm is in Calgary which has a supportive environment that promotes to work being conducted. The business has grasped from the market peak profits that enable contribute to development. The fall of crude oil prices had an enormous impact on the company since in 2014 massive financial difficulties were experienced. Production is con-centered in three main areas; Pembina Cardium, Peace River Oil Sands and Alberta Viking, since the deposits are commonly extracted in these places. Daily outputs are projected to enable achievement of goals such as a consistent supply of the products to the market.
Causes of the Transition
The change of name from Penn West Petroleum Ltd was accomplished through approval by the shareholders of the company as they are considered to play essential roles in the business since they are dormant owners. Shareholders should not act on the changes due to the effects and recognition by the company due to the transition of the company hence complex works. Three principles to guide the company have been evolved that will promote development the company. Obsidian is reliable since appropriate assets are assembled to ease working, the balance sheets are also simplified so that all individuals interested to make evaluations can understand the financial position of the company. Lower price environments have not been left out since the company offers affordable prices thus the development of the industry.
Click This Link for more information about Obsidian Energy.
Effects of Transforming to Obsidian Energy Limited
The past three years have been hazardous to the firm since it faced crises that almost led to its dissolution; thus, the option to reconstruct is under high monitoring to enable the company thrives through the market. The drastic changes are considered to open up a new chapter for the company since stability is the goal. Since Obsidian is natural due to the eruption of volcanic glass and can be shaped in the prescribed form, the company decided to rename the company as a sign of renewed natural energy. Sale of the company’s assets reduced the net debts as the number of employees decreased. Obsidian has several subsidiaries including, Endev Resources Partnership, Sifton Energy Inc, and Canetic Resources Trust. Currently, the company has approximately 300 employees on staff.