The name Penn West will soon be no more.
Penn West, which used to producer over 200,000 barrels of oil equivalent per day (boepd) but now is in the 30,000 boepd range, is proposing a name change after several years of transformation and shrinkage. The newproposed name is Obsidian Energy Ltd., according to a May 26 press release.
The oil downturn hit the company hard, and it has spent several years working through its difficulties.
鈥淎s we look around today, our company is very different from just a few short years ago," said David French, president and chief executive officer. 鈥淥ver the past several months, we spoke a lot about concluding the story of our restructuring, which touched everything from our balance sheet, key development areas, people and operating practices. We rebuilt the company from the assets up and refocused from the top down.
鈥淲e no longer resemble the old 鈥楶enn West.鈥� This year marks a new beginning for us, and we are excited to turn the page on a new chapter. In recognition of this, we will ask our shareholders to vote in favour of a proposed name change at our upcoming annual and special meeting 鈥� a name and set of principles that will guide us as we move forward. Our new company is one based on discipline, relentless passion for the work we do, and accountability to our shareholders, our partners and the communities in which we operate.鈥�
He went on, 鈥淲e propose the name 'Obsidian Energy', after a naturally occurring volcanic glass with a similar sheen to crude oil. Obsidian is created through a geological process transforming into a substance of strength, dependability, and longevity. We'll be proud to take the name and what it means for us.聽
鈥淎s a company, we are positioned with the right assets, people, and organizational structure to succeed in the current commodity price environment. We look forward to providing a more detailed review of our portfolio at our analyst day in the coming weeks and to our upcoming annual and special meeting.鈥�
The company鈥檚 numerous rounds of selling off assets resulted in selling assets in southeast Saskatchewan and southwest Manitoba, it closing its Estevan field office several years ago as well as its Waskada, Man. field office. Its former field office in Estevan, the largest field office of its type in the Energy City, is now a car dealership. According to Penn West, the company used to employ over 2,000 people across 25 office floors and 15 field offices. Now 鈥渟treamlined,鈥� the company has 2.5 floors of office space and four field offices.
Whereas before they had a broad suite of assets across four provinces, now the company is focused on key development areas in Alberta. Its website states, 鈥淏ased in聽Calgary, Penn West operates a significant portfolio of opportunities with a dominant oil position in the Cardium, Alberta聽Viking聽and聽Peace River聽areas of聽Alberta.鈥�
The company shed significant debt over these years, often selling assets to address its heavy debt levels.聽
