Whoever said what doesn’t kill you makes you stronger said so rightly. At some point Penn west went down; accounting scandals, law suits, debt crisis… Most people thought we had seen the last of it and there was no way it would bounce back. However, in 2017 they changed their name to Obsidian Energy, from Penn West Petroleum Ltd. They announced this change in June 26th, 2017 and also changed their stock symbol to OBE. This was the last step to the transformational changes they had been undergoing, as a company, in an effort to transform the company.
Their effort to change the company’s fortune for the best has paid off. It now has a whole new image. According to the report they gave, the changes they had gone through is what inspired the name change. The report said that since this new company did not resemble Penn West in any way, the name too had to be changed.
Obsidian Energy now has:
- A newly appointed auditor
- Elected a new set of directors
- Restricted share unit plan
- Reduced Share Capital. This was done for accounting Purposes
According to the CEO, David French, these changes have seen Obsidian Energy bounce back to life and promises great results for the future. He says that as a result of the changes the company went through, by the close of the year the company was registering 500 barrels of oil despite the cold weathers. They have also been able to bring their costs down and bring great results while living within their means. This not only promises great results but also positions the company for great things this year. Read This Article for additional information.
It is right to say that the words they use to describe Obsidian Energy; disciplined, relentless and accountable are the very words that define them. Obsidian have weathered the storm. Since their proposition to transform the company, they have done exactly as they planned and promised to. And as a result, they have achieved over and above what they had projected during the proposition of the changes. This leaves only one thing to certainty; 2018 will definitely be a year of increase for Obsidian Energy.
Currently, the company was at the apex of its success and was even among the sixty most prominent firms in the Toronto stock Exchange and was also a Canadian Royalty Trust (CANROY).
View Source: https://en.wikipedia.org/wiki/Obsidian_Energy