Obsidian Energy is one of the few lucky companies in the economy we have today. The Canadian oil and gas giant formerly known as Penn West Petroleum Ltd suffered a major blow that saw it crumbling down on the ground. In July 2014, Obsidian announced that billions of dollars were unaccounted for thus forcing the company to recall its financial reports from 2012 to the first quarter of 2014 and order a new audit.
From 2014, things have not been smooth for the company; from one lawsuit to another, Penn West Petroleum Ltd was forced to know its way around court rooms. In addition to the lawsuits, the company owed to the tune of 3 billion US dollars to its shareholders. While the path has not been smooth, the company has been able to soldier on well with some hopes of regaining back on its feet. Going by the current debt of 384 million US dollars as at 31st of March 2017, there is hope for the company. Go Here To Learn More.
For Penn West Petroleum Ltd to be able to reach this point, it has taken a lot of intervention. For instance, the company has been forced to sell most of its assets in order to recover part of their debt. As a result of this, Penn West Petroleum Ltd by default had to cut down on its oil productions from 135,000 bbl. as at 2013 to 28,000 barrels per day. The organization employees had to be retrenched with the company reducing its employee’s population from 1,415 to 407 employees in a period of three years. Today, Obsidian has several subsidiaries including Canetic Resources Trust, Endev Resources Partnership, and Sifton Energy Inc. Currently, the company has approximately 300 employees on staff.
Though it has taken the company a lot of work, gladly the work is almost done. The last steps of the rebuilding process were completed on 26th June 2017 when the board with a majority vote passed to change the name Penn West Petroleum Ltd to Obsidian Energy. During the shareholders meeting it was not only the name that was agreed on, the shareholders also agreed to change the company’s share symbol in the stock market. The now reformed Obsidian Energy promises its investors a relentless passion for work, accountability both to their shareholders and the community and finally work disciple. It’s only a matter of time and the company regains it covetous spot in the economy.