Obsidian Energy was previously the Penn West Exploration, but it changed its name after surviving financial and accounting saga. It is a medium-sized energy producer located in Calgary, Alberta. Primarily, Obsidian Energy is an Oil and Natural Gas Producer. Before facing a financial crisis, Obsidian was one of the best energy producers in the Western Canada. Its market reached to hit the summit back in 2008 by garnering a total of US $9.5 Billion.
It gained the Canadian Royalty Trust between 2005 and 2011. However, things shifted toward the worst when the company experienced economic instability that rendered it just a medium-sized energy company.
The Financial Difficulties
In 2014, Obsidian Energy underwent heated financial difficulties following the significant drop in oil prices in all parts of the world. Though it was a friction that engulfed most companies, it seems like it had its worst fury against the Obsidian Energy. To survive the ordeal, the management of the company suggested and remained adamant that it is restructured. Therefore, the company had more than 50% of its assets sold off so that it could gain financial stability to carry out various vital duties.
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From Penn West Petroleum to Obsidian Energy
After going through the financial difficulties caused by the drastic fall in the oil prices, the belittled Penn Western opt to change its name to Obsidian so that it could have a new debut into the oil industry. Being that there was a substantial difference between the current company and the initial Penn West, David French, the CEO of Calgary Oil saw it wise to have Penn West given another name. In July 2014, the Penn West reported that it had had its millions of dollars mishandled hence forcing it to restate its financial reports of 2012, 2013 and also the last quarter of 2014.
After changing its name, Obsidian Energy is now operating as a medium Oil and natural gas producer in the Western Canada. The drop in the oil prices had a negative consequence forcing the company to reduce the size of its market. Also, being that it had limited assets and capital, it could not restore its initial large-scale operation.
See Also: https://beta.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/penn-west-shareholders-approve-name-change-to-obsidian-energy/article35463586/?ref=http://www.theglobeandmail.com&