Leaner, more streamlined, more focused and more determined than ever to succeed in the ever-changing world of energy exploration, Obsidian Energy has risen like the proverbial Phoenix from a radical restructuring. Now it is determined to carve out a profitable future.
Formerly Penn West Exploration Ltd., the company has transformed from top to bottom as it seeks to move on from operational difficulties that rocked the oil industry after crude priced plunged significantly in 2014.
CEO David French said the new name of the company was chosen carefully, and as a reflection of Obsidian’s new corporate culture and strategy. Obsidian is hard, glassy kind of volcanic glass long prize as material to build superior weaponry by indigenous people. It’s a substance that can be honed to a razor-sharp edge. Sharp and tough characterizes the new Obsidian Energy.
Even after a major downsizing, French says Obsidian is the largest stake colder in the Pembina Cardium, and even bigger than the No. 2 and No. 3 holders combined. The company is headquartered in Calgary, Alberta. In addition to the Pembina Cardium, it operates on the Peace River Oil Sands and the Alberta Viking basin.
French calls his company holdings in the Pembina Cardium “special” because it is a “high margin, low decline business that gives us a tremendous engine for cash.”
Over the next four to five years, Obsidian management will focus on development of its Cardium assets. Part of the reason is the excellent cash flow the site can generate, making it possible for the entire company to grow in a self-funded way. Cash generated by the Cardium will also be used to develop Obsidian’s Peace River and Alberta Viking projects. Find Additional Information Here.
In addition to the confidence Mr. French has in Obsidian’s material assets, he also praises the people on his team as perhaps the company’s most valuable resource. He says the Obsidian Energy staff is “relentless and driven” to produce energy in a way that is intensively cost effective, with an eye constantly on lean operation with attractive margins.
“We’re a company that is very serious about what we do,” French said.