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.