Penn West Petroleum was once considered as a critical player in the oil and petroleum industry of Canada. They are consistently being placed in the top performing companies in the country, and most of the investors are pouring in their money in favor of Penn West Petroleum. Their stock prices are high, and people found it prestigious whenever they are being hired by the company. However, all of it changed when the costs of global oil and petroleum supplies started to crash. Some nations generated an oversupply which triggered the sudden crash in prices, and companies like Penn West Petroleum was significantly affected. They had to cut the number of employees working for the company and retained only 300 from the thousands.
Today, Penn West Petroleum went through a restructuring and rebranding plan, which changed their name to Obsidian Energy. The oil and petroleum company suffered from the oil and petroleum price crash, but they also faced several accounting scandals and debt crisis which contributed to their downfall. Now under new management, with David French serving as the new CEO, Obsidian Energy is confident that they can go back on track. Obsidian Energy had to meet with their shareholders to hold an election about the name change, and most agreed that Penn West Petroleum should now be referred to as Obsidian Energy because the company has drastically changed, without any traces of its old self.
David French stated that the restructuring and the rebranding of Obsidian Energy saved the company from total bankruptcy, and now that they are opening a brand-new chapter in the history of the company, Obsidian will focus more on the exploration of new areas for the extraction of oil and petroleum. They also announced that the accounting scandals that they have faced in the past had been settled. View Additional Info Here.
Obsidian Energy has vast oil and petroleum wells in the northern part of Canada. They operate in a sedimentary region which is considered as the location containing the highest petroleum reserves. Obsidian Energyvmanages to extract more than 30,000 barrels of oil per day, and the management of Obsidian Energy is hoping that the sales will be enough for them to rise again from the ashes.
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).