Activist investor pushing for sale of Obsidian Energy: source

New York

ACTIVIST investor FrontFour Capital Group is urging Obsidian Energy Ltd to explore a sale, arguing that the company could fetch twice as much as its current share price, according to a person familiar with the matter.

The decision to push for a sale comes four years after FrontFour started to build its position in the embattled Calgary-based oil and gas producer, which was formerly known as Penn West Petroleum Ltd. It is now FrontFour's third-largest investment, according to data compiled by Bloomberg.