Penn West lowers FY15 production view to 84K-88K BOE/d from 86K-90K BOE/d Penn West lowered its annual production guidance range as a result of the divestiture of its Weyburn Unit working interest and Mitsue properties to 84K-88K BOE/d from 86K-90K BOE/d. The company's capital budget for the year remains unchanged at $500M. Still expects operating costs for the year $19.25/boe-$19.75/boe with G&A for the year $2.80/boe-$3.05/boe.
Penn West announces sale of non-operated 9.5% working interest in Weyburn unit Penn West announced that it has entered into a definitive agreement for the sale of its non-operated 9.5% working interest in the Weyburn Unit in Southeast Saskatchewan for cash consideration of $205M, 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 Weyburn Unit working interest, we will have raised approximately $810M in total proceeds this year through our non-core asset disposition program. The following are some of the key metrics and implied transaction multiples for the Weyburn Unit working interest for first half 2015: Production of 2,500 bbl/d, Liquids Weighting of 100%, Operating cost of $11.50/bbl, nomralized operating cost of $25.00/bbl, and normalized field netback of $17.50/bbl.