CALGARY, Nov. 9, 2015 /CNW/ - PENN WEST PETROLEUM LTD. (TSX - PWT; NYSE
- PWE) ("Penn West", "we", "us" or "our") is pleased to announce that it has closed the sale of its
non-operated 9.5% working interest in the Weyburn Unit in Southeast
Saskatchewan for cash consideration of approximately $205 million.
Additionally, as announced in our third quarter results, we closed the
sale of our properties in the Greater Mitsue area of Central Alberta on
October 30, 2015, for total proceeds of $193 million, subject to
closing adjustments. We intend to use the proceeds from both
dispositions to reduce our senior debt.
With approximately $810 million in divestitures announced this year, we
have surpassed our $650 million non-core asset disposition target,
despite a challenging commodity price environment. These transactions
continue to demonstrate our ability to complete non-core asset
dispositions at attractive deal metrics. We will continue our
divestiture process on additional non-core assets.
About Penn West
Penn West is one of the largest conventional oil and natural gas
producers in Canada. Our goal is to be the company that redefines oil
& gas excellence in western Canada. Based in Calgary, Alberta, Penn
West operates a significant portfolio of opportunities with a dominant
position in light oil in Canada on a land base encompassing
approximately 4 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". All dollar amounts herein are in Canadian dollars.
Certain statements contained in this document constitute forward-looking
statements or information (collectively "forward-looking statements")
within the meaning of the "safe harbour" provisions of applicable
securities legislation. In particular, this document contains a
forward-looking statement pertaining to our intention to use the
proceeds from the dispositions to reduce our senior debt, that the
transactions continue to demonstrate our ability to complete non-core
asset dispositions at attractive deal metrics and that we will continue
our divestiture process on additional non-core assets.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations and
assumptions will prove to be correct. Readers are cautioned not to
place undue reliance on forward-looking statements included in this
document, as there can be no assurance that the plans, intentions or
expectations upon which the forward-looking statements are based will
occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties that contribute
to the possibility that the predictions, forecasts, projections and
other forward-looking statements will not occur, which may cause our
actual performance and financial results in future periods to differ
materially from any estimates or projections of future performance or
results expressed or implied by such forward-looking statements.
Important factors that could cause actual results and events to differ
from those described in the forward-looking statements can be found in
our public filings (including our Annual Information Form) available in
Canada at www.sedar.com and in the United States at www.sec.gov. Readers are cautioned that this list of risk factors should not be
construed as exhaustive.
The forward-looking statements contained in this document speak only as
of the date of this document. Except as expressly required by
applicable securities laws, we do not undertake any obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. The
forward-looking statements contained in this document are expressly
qualified by this cautionary statement.
SOURCE Penn West
For further information:
Penn West Plaza
Suite 200, 207 - 9th Avenue SW
Calgary, Alberta T2P 1K3
Toll Free: 1-866-693-2707
Toll Free: 1-888-770-2633