U.S. hedge fund reports owning more than a 5% stake in Obsidian Energy

Must Read

Buick Creek water station closed for maintenance

FORT ST. JOHN, B.C - The Peace River Regional District is advising the public that the Buick...

CPP breaking its rules with third-party donations in U.S: environment group

TORONTO — An environmental group says the Canada Pension Plan is dodging rules that say its money cannot be...

New Distillery could open in Fort St. John

FORT ST. JOHN, B.C - A new business has applied for a Manufacturing License with a Lounge...

CALGARY — Activist investor FrontFour Capital says it will attempt to influence decisions at Calgary-based Obsidian Energy Ltd. (TSX:OBE) after accumulating more than 27 million shares.

The Greenwich, Conn.-based hedge fund says in a declaration filed with the U.S. Securities and Exchange Commission that it has a 5.5 per cent stake in the oil and gas company formerly known as Penn West Petroleum. The filing is required if any entity owns more than five per cent of a publicly traded company.

The filing says that the shares were purchased because they are undervalued and therefore represent an attractive investment opportunity.

- Advertisement -

FrontFour says it has been in touch with company directors to discuss its strategy and board composition and says it intends to continue the communication, without being specific.

FrontFour’s principal owner is listed as Zachary George, the son of former Obsidian chairman Rick George, who died in August.

Obsidian shares gained six per cent or 10 cents Tuesday to close at $1.70.

The Canadian Press

- Advertisement -

Community Interviews with Moose FM


Subscribe to our newsletter

Get the latest news delivered to your mailbox every morning.

More Articles Like This