Penn West sells Saskatchewan assets to Teine Energy

CALGARY, Alberta -- Penn West Petroleum has entered into a definitive agreement for the sale of all of its Saskatchewan assets, including its Dodsland Viking area, for a cash consideration of C$975 million.

The Saskatchewan assets are split approximately evenly between medium and heavy oil properties in the West and the Dodsland light-oil properties in the East. The purchaser is Teine Energy Ltd., a Viking producer backed by the Canada Pension Plan Investment Board.

This transaction, together with additional Alberta asset dispositions for proceeds of approximately C$140 million, is expected to close in the second quarter. 

"While the Dodsland Viking was an important contributor to Penn West's growth profile in recent years, this transaction will allow us to replace these largely mature assets by funding the more prospective and numerous growth opportunities in our Cardium and Alberta Viking positions; areas where we are more focused and more competitive," Dave Roberts, president and CEO of Penn West, said.