Penn West Petroleum has signed an agreement to sell a number of its non-core assets in Canada for $355million to a private company.
The assets in south central Alberta are currently producing around 7,500BOE (Barrels of Oil Equivalent) per day.
Penn West said it expects the deal to close by December.
President of Penn West, Dave Roberts, said: “Following closing of this sale, Penn West will have completed over $1 billion in asset sales within the first year of our long-term plan.
“Further, as a result of these combined divestments, a favourable commodity price environment early in the year and strong operational improvements, we will have reduced our debt position by over $1.2 billion during that same period – a positive step forward in our improvement story.
“In November 2013, the Company announced a plan to reduce its debt through the disposition of non-core producing and non-producing assets in the range of $1.5 to $2billion.
“We are now directing our disposition efforts to non-producing assets as we continue to increase the focus on our core areas and improve our financial flexibility through a considerably stronger balance sheet.”
By Niamh Burns