Prior to June 2017, Obsidian Energy is known as the Penn West Petroleum Company. They are consistently included in the list of the top 60 performing Canadian companies by the Toronto Stock Exchange, and the annual revenue posted by the company is around $9.5 billion. They have been extracting oil and petroleum in the vast sedimentary region of northern Canada, which is recognized as the region with the largest deposit of oil and petroleum worldwide. They have multiple oil and petroleum wells in the region, and they have been conducting extraction procedures every single day, with the extracted oil and petroleum being sold to the global market. However, due to the constant drop in oil and petroleum prices starting in 2014 because of oversupply, the fate of Penn West Petroleum changed. Read This Article for related information.
The company experienced the worst blow to their revenue, and it started to go down. From earning more than $9.5 annually, Penn West Petroleum saw that these figures went down, and they have to cut their expenses to save them from total bankruptcy. The number of employees working for the company was significantly cut down to only 300 and the company had to go under a rebranding and restricting process to save what is left. David L. French was named as the new CEO of the company, and Penn West Petroleum rebranded into Obsidian Energy.
The new heads of Obsidian Energy started to think what they can do to save the company from total bankruptcy. They gathered the data about their remaining oil fields found in the northern part of the country, and extracted what’s left. Obsidian Energy managed to get about 31,000 barrels of oil per day from the remaining oil and petroleum wells under their ownership, and they used these remaining resources to keep their heads out of the water. Obsidian Energy soon started to sell the reserve that they extracted, and the executives found out that they are regaining their profit, even if it is only a fraction of what they are making years before. Today, Obsidian Energy is focusing on tapping other markets that would give them additional revenue.