Obsidian Energy is a Canadian mid-sized oil and natural gas producer. The firm was, prior to June 2017, known as Penn West Petroleum. In his signature New Year video update to the firm’s shareholders, Obsidian Energy President and CEO, affirmed the firm’s commitment to maximising value to its shareholders and to stick to its stated values of discipline, relentlessness and accountability.
The year 2017, was indeed a transformational period for the firm as it not only went through a major rebrand, but also managed to shake off the challenges that had bedraggled it to record a drop in costs and relative growth in portfolio asset performance.
The main reasons touted for this according to Obsidian Energy CEO, is a well laid out strategy meant to position the firm on the platform of a stable growth in the dynamic oil and gas industry.This strategy focuses squarely on Obsidian Energy’s core positioning in these three major portfolios in the Cardium region, Peace River region and Alberta Viking region.
The core operational strategy in the Cardium region is centred on building the Cardium water flood platform. Water flooding, commonly known as water injection, is essentially a technique where water is injected into an oil field to apply pressure and hence increase oil production. This is one of Obsidian Energy’s core strategy meant to ramp up oil output.
The Aberta Viking region on the other hand has been set up for improving the infrastructural advantage; by increasing its oil and gas infrastructure ownership in the area. Find Related Information Here.
The Peace River region alternately offers the opportunity to boost heavy oil production by Obsidian Energy. The firm reports that this is done through an operated partnership with China Investment Cooperation. Here, cold flow technique, which is used to recover heavy oil, is relied upon to continue boosting the oil production.
The firm’s CEO remains upbeat on Obsidian Energy’s prospects into the year ahead.