Obsidian Energy Limited is a Canadian fossil fuel and energy company. They produce crude and shale oil as well as natural gas from facilities all over Canada. Their world headquarters is located in the city of Calgary in Alberta province. Prior to being called Obsidian Energy Limited the company was known as Penn West Exploration Ltd. While the company had some trouble with the unprecedented collapse in oil prices in the middle of 2014 they have managed to bounce back and are poised to jump on the next wave of increasing energy prices.
Obsidian has long been a giant in the Canadian energy markets. The company was a Canadian Royalty Trust for six years starting in 2005. During this period the company reached a high market cap of almost 10 billion USD in the first quarter of 2008. After a couple of hard years starting in 2014 with the collapse of petroleum prices the company engaged in large scale restructuring which brought them out of a great deal of debt over a 2-year period.
The gas and petroleum fields that are operated by Obsidian are in close proximity to the WCSB or Western Canadian Sedimentary Basin. This area in Alberta has some of the largest proven oil reserves on the planet. There are three major production zones that Obsidian operates in- the Peace River Zone, Alberta Viking and the Pembina Cardium. When all three sites are up and running they generally produce more than 30,000 barrels every day.
All three sites are run year-round and have experienced very few delays. The vast majority of the petroleum is not light crude as in the Middle East- in fact the larger portion of the sites are made up of shale oil. This oil is mixed with rock and more expensive to take out of the ground. Generally, when barrels of oil are around or above 60 dollars a barrel it is financially viable to take the shale oil out of the ground through mining and an industrial extraction process. Go To This Page for related information on the company.
Obsidian Energy is looking forward to the growth and long-term viability of the Canadian energy market.