Penn West to Sell Weyburn Stake
Penn West announced Thursday that it intends to sell its non-operated 9.5 percent working interest in the Weyburn field, located in southeast Saskatchewan, Canada, for $205 million.
As a result of the divestiture of the company’s Weyburn working interest and the Mitsue properties, previously announced on September 15, Penn West adjusted its annual production guidance range to between 84,000 and 88,000 barrels of oil equivalent per day from 86,000 to 90,000 boepd. The company stated that its capital budget for the year remains unchanged at $500 million.
David Dyck, senior vice president and chief financial officer of Penn West, commented in a company statement:
"This disposition further demonstrates the continued success of our non-core asset disposition program. With this transaction, we have surpassed our $650 million non-core asset disposition target. We believe that our dispositions this year evidence the quality of our non-core asset base, our ongoing commitment to reduce our debt, and our ability to successfully execute meaningful transactions in a challenging commodity price environment. We will continue to pursue additional non-core asset divestitures in order to further reduce our leverage and we will continue to focus on our core operations."