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".
Forward-Looking Statements
Certain statements contained in this press release constitute
forward-looking statements or information (collectively
"forward-looking statements") within the meaning of the "safe
harbour" provisions of applicable securities legislation.
Forward-looking statements are typically identified by words such
as "anticipate", "continue", "estimate", "expect", "forecast",
"budget", "may", "will", "project", "could", "plan", "intend",
"should", "believe", "outlook", "objective", "aim", "potential",
"target" and similar words suggesting future events or future
performance. In particular, this document contains forward-looking
statements pertaining to, without limitation, that the sale of all
of Penn West's Saskatchewan assets
is expected to close on or before June 24,
2016, the expectation to be fully in compliance with all of
our financial covenants at the end of second quarter and for the
remainder of 2016, and that the sales of approximately $113 million of some of Penn West's Alberta assets are expected to close on or
about June 27, 2016.
Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations and
assumptions will prove to be correct. Readers are cautioned
not to place undue reliance on forward-looking statements included
in this document, as there can be no assurance that the plans,
intentions or expectations upon which the forward-looking
statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility
that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause our
actual performance and financial results in future periods to
differ materially from any estimates or projections of future
performance or results expressed or implied by such forward-looking
statements. Important factors that could cause actual results
and events to differ from those described in the forward looking
statements can be found in our public filings (including our Annual
Information Form) available in Canada at www.sedar.com and in the United States at www.sec.gov. Readers
are cautioned that this list of risk factors should not be
construed as exhaustive.
The forward-looking statements contained in this document speak
only as of the date of this document. Except as expressly
required by applicable securities laws, we do not undertake any
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. The forward-looking statements contained in this
document are expressly qualified by this cautionary statement.
SOURCE Penn West