Penn West Petroleum Ltd. (TSX - PWT; NYSE - PWE) has entered into a definitive agreement for the sale of its non-operated 9.5% working interest in the Weyburn Unit in Saskatchewan, Canada, for cash consideration of $205 million.
Penn West intends to use the proceeds from this disposition to reduce its senior debt. Upon the completion of the sale of our Weyburn Unit working interest, the company will have raised $810 million in total proceeds this year through its non-core asset disposition program.
The effective date of the sale of Penn West’s Weyburn Unit working interest will be July 1, and closing is expected to occur during the fourth quarter of 2015.
RBC Capital Markets acted as Penn West’s exclusive financial advisor on this disposition.