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After that you need to wait for it to do it's work... but you can leave the area and come back later. Some lamps/torches to mark the way may be a good idea.
Then return home and put it in a forge, using some fuel to make it usable.
I strongly suggest you then invest in making blue (advanced) extractors with it. It may seem counter intuitive to waste two obsidian on them but... not only will they work faster, they will also double your output and repay themselves (from 6 to 12, you have a net gain of 4 factoring the 2 obsidian cost).
If you still can't find the obsidian, here is a quick video I made a while back to help people out :
http://steamcommunity.com/sharedfiles/filedetails/?id=783377372