Obsidian Energy Ltd started operating in 1979 under its first name Penn West Energy Trust. Over the years, the business had changed its name a few times, and as of June 2017, it started calling itself Obsidian Energy. The corporation is a Canadian oil and natural gas business which is based in Calgary, Alberta. The Obsidian Energy Ltd is under the leadership of Mr. David Frech, acting as President and Chief executive officer.
With a staff of three hundred people, Obsidian Energy Ltd is a mid-sized company. It sources the natural gas and oil from three locations in Alberta such as the Alberta Viking, Pembina Cardium, and the Oil Sands of Peace River. The primary site, however, is Western Canadian Sedimentary Basin, as this region is known to have some of the most significant petroleum reserves in the world. The production of the corporation reached close to 31 000 BBL equivalent a day in 2017.
Over the decades, Obsidian Energy Ltd. has had its fair share of achievements as a business. The company used to be one of sixty strongest firms according to the list of Toronto Stock Exchange. Then, from 2005 up till 2011, Obsidian Energy Ltd. was announced to b a Canadian royalty trust business or CANROY for short. The year of 2008 was exceptionally prosperous for Obsidian Energy Ltd. The company because it achieved a peak capitalization and accomplished a revenue of more than $9 billion.
CANROY is a cluster of business which are in the trust as long as they distribute their income among shareholders. CANROY businesses do not have to pay federal taxes because of that but in 2011 that changed. Obsidian Energy Ltd chose to step away from the Canadian royalty trust and become a conventional corporation. Some other companies that were in the Canadian royalty trust include Vermilion Energy, Zargon Energy, Freehold Royalty, NAL Oil and Gas, and a dozen other corporations. Click Here For Related Article.
Obsidian Energy Ltd did a restructuring of the business in significant proportion in 2014 after the crude oil prices started decreasing drastically. The company was forced to sell a large part of their assets to reduce the debt and stay above the water.