Obsidian Energy (OBE) is one of Toronto Canada’s primary stocks. The company focuses on oil and natural gas drilling in Canada. Their drilling fields are in the Western Canadian Sedimentary Basin and Alberta. Along the entire Western Canadian Sedimentary Basin which includes the south eastern Yukon territory, areas in the Northwestern territory; Liard Basin; Horn River; the area from Horn River through Montney, Alberta; Duvernay, Alberta; and the Alberta Deep Basin. This area is believed to have the world’s largest petroleum reserves.
Obsidian Energy is headquartered in Calgary, Alberta. Their offices are very near their drilling fields. The primary drilling locations are in Alberta Viking, Cardium and Peace River. Alberta Viking drilling yields both oil and natural gas from shorter cycle wells. The Alberta Viking wells yield 1,766 BOE. Cardium is slightly southwest of central Alberta. It is a longer cycle waterflood platform yielding light oil at a rate of 18,876 BOE. Peace River is located in Central Eastern Alberta. It is a joint venture between Obsidian Energy and China Investment Corporation. Peace River’s cold flow production drilling yields 4,283 barrels of oil equivalent daily (BOE).
To get from Penn West Petroleum Ltd to Obsidian Energy, the company had to undergo some drastic changes. The company streamlined production and reduced it from 135,000 BOEPD in 2013 to 28,000 BOEPD in 2018. They also reduced their employee count from 1415 to 407 and lowered their net debt from $3 billion to $384 million. On June 26, 2017, the company name was officially changed to Obsidian Energy.
Obsidian Energy began is new business approach with 3 principles. 1) It would employ each move as disciplined commercial decision-making conceived to promote the building and protecting of the company’s value. 2) The primary goal of every step would be the relentless pursuit of innovation and ultimate progress. 3) The company would always seek to be accountable, using transparent efforts, allowing shareholders, partners and the communities in which they operate to be aware of their activities. All these changes including Obsidian’s preparedness for competing in a lower price environment will extend the life of the company as noted by David French, Obsidian’s President and Chief Executive Officer. See This Page to learn more.