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PENN WEST PETROLEUM LTD. (TSX – PWT; NYSE – PWE) (“Penn West“, “we“, “us” or “our“) is pleased to announce that it has entered into a definitive agreement for the sale of its properties in the Greater Mitsue area of Central Alberta for cash consideration of $192.5 million, subject to closing adjustments customary in transactions of this nature.  We intend to use the proceeds from this disposition to reduce our senior debt.  Upon the completion of the sale of our Mitsue properties, we will have raised approximately $605 million in total proceeds this year through our non-core asset disposition program.  In addition, since the end of Q2 2013, we will have divested an estimated 34,000 boe/d of non-core assets for proceeds of approximately $1.7 billion, which has allowed us to reduce our debt by approximately $1.4 billion, representing a reduction of more than 40%.

David Dyck, Senior Vice President and Chief Financial Officer of Penn West, commented, “This disposition marks another critical milestone in our ongoing strategic focus to reduce debt.  Despite the current weakness in commodity prices, we continue to demonstrate the ability to complete non-core asset dispositions at attractive deal metrics.  We believe that our non-core assets offer value to buyers who are better positioned to realize their potential.”

The following are some of the key metrics and implied transaction multiples for the Mitsue properties for first half 2015:


4,500 boe/d

Liquids Weighting


Operating Cost


Field Netback


Implied Production Multiple


Implied Net Operating Income Multiple


The effective date of the sale of our Mitsue properties will be July 1, 2015 and closing is expected to occur during the fourth quarter of 2015, subject to the receipt of all necessary regulatory approvals and the satisfaction of closing conditions customary in transactions of this nature.  RBC Capital Markets acted as our exclusive financial advisor on this disposition.

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 4.3 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.