CALGARY, June 21, 2016 /CNW/ – PENN WEST PETROLEUM LTD. (TSX – PWT; NYSE – PWE.BC) (“Penn West”, “we”, “us” or “our”) is pleased to announce that a notice has been issued under the Competition Act by the Commissioner of Competition granting clearance to Penn West and Teine Energy Ltd. to complete the previously announced sale of all of Penn West’s Saskatchewan assets, including its Dodsland Viking area, for cash consideration of $975 million, subject to normal closing adjustments. This Competition Act clearance is the only regulatory approval needed to complete the sale.
Penn West also announces that the closing of the sale of its Saskatchewan assets is expected to occur on or about June 24, 2016. The completion of the sale remains subject to customary closing conditions. As a result, we expect to be fully in compliance with all of our financial covenants at the end of the second quarter and the remainder of 2016.
In addition, in connection with the previously announced Alberta asset dispositions for total proceeds of approximately $140 million, Penn West is pleased to announce that approximately $27 million of these asset dispositions have been completed, with the sales of the remaining approximately $113 million of assets expected to close on or about June 27, 2016, subject to customary closing conditions.
The total cash consideration from asset dispositions to date in 2016 is approximately $1.3 billion, reducing our pro forma Net Debt to approximately $600 million from $2.1 billion at year-end 2015.
About Penn West
Penn West is a conventional oil and natural gas producer in Canada. Our goal is to be the company that redefines oil and gas excellence in western Canada. Based in Calgary, Penn West operates a significant portfolio of opportunities with a dominant oil position in the Cardium, Viking and Peace River areas of Alberta. 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.BC”.