Penn West to sell Slave Point acreage in Alberta for C$148 million


CALGARY, Alberta -- Penn West Petroleum has entered into a definitive agreement for the sale of its properties in the Slave Point area of Northern Alberta for a cash consideration of C$148 million. 

So far this year, Penn West has closed or entered into either definitive agreements or letters of intent to sell some of its non-core assets for an aggregate cash consideration of approximately C$80 million which, together with the proceeds from the sale of Slave Point, brings the total expected cash consideration from asset dispositions this year to approximately C$230 million.  These non-core asset sales are expected to close by the end of the second quarter. Penn West's asset disposition program has now raised over C$1 billion in cash proceeds since the beginning of 2015. 

"Although Slave Point has long been one of our core assets, given the current outlook for commodity prices, we had no development activity planned for at least the balance of this year. The proceeds from the sale of Slave Point and some of our non-core assets will help to strengthen our balance sheet and improve our financial flexibility and our overall corporate metrics," said David Dyck, senior V.P. and CFO of Penn West. "While we believe that Slave Point offers upside, the extension of our Viking play and recent Cardium performance provide us with ample development and growth opportunities and the most attractive rates of return in our portfolio."

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