Penn West Sells Working Interest In Weyburn Unit; UpDates Production Guidance

(RTTNews) - Penn West Petroleum Ltd. (PWT.TO, PWE) announced it has entered into a definitive agreement for the sale of its non-operated 9.5% working interest in the Weyburn Unit in Southeast Saskatchewan for cash consideration of C$205 million. The company intends to use the proceeds to reduce senior debt. Upon the completion of the sale, the company will have raised approximately C$810 million in total proceeds in the current year through non-core asset disposition program.

David Dyck, SVP and CFO, said, "With this transaction, we have surpassed our C$650 million non-core asset disposition target."

Penn West also announced that, as a result of the divestiture of both its Weyburn Unit working interest and Mitsue properties, the company has updated annual production guidance range to 84,000 - 88,000 boe/d from 86,000 - 90,000 boe/d. Capital budget for the year remains unchanged at C$500 million.