Penn West Exploration Announces the Completion of Previously Announced Non-Core Asset Divestments
Dec 19, 2012
CALGARY, Dec. 19, 2012 /CNW/ - PENN WEST PETROLEUM LTD. (TSX - PWT) (NYSE - PWE) ("PENN WEST") is pleased to announce that it has closed its previously announced divestment of non-core assets.
In June of 2012, Penn West announced its intention to divest of $1.0 to $1.5 billion of non-core assets. Effective today, the last of a number of asset dispositions related to this plan closed for total gross proceeds of approximately $1.3 billion. In addition to these dispositions, we also recently closed a series of minor dispositions. Total proceeds from all sales of approximately $1.35 billion were used to repay outstanding indebtedness on the company's credit facility.
Total production and reserves associated with the combined divestments was approximately 13,000 boe per day and 69 million boe of proved plus probable reserves, respectively. On average, both production and reserves were weighted approximately 95% toward oil and liquids. Divested assets were located primarily in Southeast Saskatchewan and represented mature, base assets in Penn West's asset portfolio. CIBC World Markets acted as an advisor to Penn West on the divestment of the royalty interest in the Weyburn unit in southeast Saskatchewan.
Average transaction metrics were approximately $103,000 per flowing barrel and approximately $19 per boe of proved plus probable of reserves. Penn West expects to record a gain on the sale of the assets in the range of $250 to $300 million.
Our full year 2012 average production guidance released with our third quarter results is between 161,000 to 163,000 boe per day, prior to these divestments. Penn West expects its 2012 annual average production to remain in this same guidance range after the effect of these additional divestments.
Penn West plans to release its 2013 capital budget in mid-January, 2013.
Penn West is one of the largest conventional oil and natural gas producers in Canada. Penn West operates a significant portfolio of opportunities with a dominant position in light oil in Canada. Based in Calgary, Alberta, Penn West operates throughout western Canada on a land base encompassing approximately six million acres.
Penn West shares are listed on the Toronto Stock Exchange under the symbol PWT and on the New York Stock Exchange under the symbol PWE.
SOURCE: Penn West Exploration
For further information:
PENN WEST EXPLORATION
Murray Nunns, President & Chief Executive Officer
Clayton Paradis, Manager, Investor Relations