Penn West sells non-core oil exploration assets

Penn West Petroleum announced it sold $175 million in non-core Alberta assets, which contain non-core Viking and Mannville units. Canada-based Penn West Petroleum announced it sold $175 million in non-core Alberta assets, which contain non-core Viking and Mannville units, The Canadian Press reported. Penn West said the deal will help enhance the company's ability to concentrate on areas that are considered core light oil areas this year.

"In 2013, Penn West drilled 238 (209 net) operated wells including 59 (54.3 net) wells in the fourth quarter, predominantly focused on light oil and with a success rate of approximately 99 percent," Penn West said in a statement.

During fourth quarter production last year, Penn West said average output was 124,000 barrels of oil equivalent per day while average production for 2013 overall was higher with 135,100 boe per day.

"Expected proceeds from this transaction are approximately $175 million, subject to customary closing conditions, and result in transaction metrics of approximately $26,000 per flowing barrel and an accretive 2014 net operating income ('NOI') multiple," the Penn West release said.

Penn West said the transaction for the $175 million agreement will be completed near March 14 and said it will focus on transactions that will help lower the amount of non-core holdings as part of its long-term strategy.

More information on Penn West production operations can be found on PennEnergy's research area.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Latest PennEnergy Jobs

PennEnergy Oil & Gas Jobs