Penn West presents at EnerCom’s The Oil & Gas Conference®
During Penn West’s breakout session, management was asked the following questions:
- Do the costs generally come down to LOE?
- With your cleaned up balance sheets, what properties do you have on water flood? Are you looking at other EOR?
- Do you still have your Provost field?
- Do you have the Duvernay? Did you get any interest when it was for sale?
- Are you using any polymer floods?
- Where are you getting the water from for flooding?
- Is there a time frame when you expect sustained $60 WTI pricing?
- Was the hedging at $50 prices self-capping the price by the industry? What is the Western Canadian price differential?
- Where will you spend incremental dollars above your plan?
- Are you going to offer dividends?
- Is investment in Calgary oil still an OK investment?
You can listen to Penn West’s presentation by clicking here.
For the company’s second quarter results, click here.
Penn West (ticker: PWE) is a conventional oil and natural gas producer in Canada. Based in Calgary, Penn West operates a portfolio with notable positions in the Cardium, Alberta Viking, and Peace River areas of Alberta. As of December 31, 2015, Penn West had total proved reserves of 208 MMBOE.
Penn West’s production in Q2 2016 was 63,568 BOE per day. In the second quarter, the company executed a number of asset divestitures, including the sale of its core Slave Point and Saskatchewan properties. These divestitures, combined with signed agreements for an incremental $75 million in sales proceeds subsequent to the quarter, reduced Penn West’s pro-forma net debt to approximately $491 million from $2.1 billion at year-end 2015.
The company plans to dispose of non-core assets with associated production of approximately 20,000 BOE per day to generate between $100 million and $200 million in proceeds in the second half of 2016.
The company remains committed to its core assets in the Cardium, Alberta Viking, and Peace River areas. Penn West increased its capital expenditure program by approximately $40 million to restart development in the Cardium and Alberta Viking areas. Penn West plans to drill 5 wells in the Cardium, 11 wells in the Alberta Viking, and 19 gross wells in the Peace River area. The second-half drilling program is expected to add approximately 3,000 BOE per day to the company’s 2016 existing production, setting Penn West up for continued growth into 2017.
