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2011 ASSET DIVESTITURE
Bid Date: November 3, 2011 |
Penn West Exploration has initiated a process for the divestiture of certain non-operated oil and gas assets in Western Canada and has retained Scotia Waterous Inc. as its exclusive financial advisor to assist in this process.
The divestiture consists of three oil weighted properties located in Alberta and Manitoba as outlined in the map below.
DIVESTITURE SUMMARY
AREA HIGHLIGHTS
Kaybob Area:
- Production (1H 2011)
- ~2,100 boe/day (73% liquids)
- Average 38% W.I. on 113,280 gross acres
- Key producing units:
- Kaybob South BHL Gas Units No. 2 & 3
- Kaybob South Triassic Units 1 & 2
- Kaybob BHL Oil Unit No.1
- Opportunities
- Pool optimization
- Application of horizontal, multi-stage fracs
- Potential in the Montney, Duvernay and Nordegg
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Virden Manitoba:
- Production (1H 2011)
- ~1,000 boe/day (100% oil)
- Average 38% W.I. on 37,162 gross acres
- Key producing units:
- North Virden Scallion Unit No. 1
- Virden Roselea Units No. 1, 2 & 3
- Routledge Unit No. 1
- Daly Units No. 1 & 3
- Key producing formation
- Opportunities
- Horizontal infill drilling
- Three Forks and Bakken potential
- Fee land
- 99.27% W.I. in 57,533 gross acres of Fee land
- Leases to be issued
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Westerose Area:
- Production (1H 2011)
- ~1,300 boe/day (83% liquids)
- W.I. of 19 to 44% in 3 units
- Key producing units:
- Homeglen – Rimbey D3 Unit
- Westerose South Dick Lake Leduc Unit
- Westerose Leduc D3 Royalty Unit
- Opportunities
- Minimal drilling activity in recent years leaving several infi ll and attic oil locations, as defined by 3-D seismic
- Potential for enhanced oil recovery (CO2 flood)
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PROCESS
The timetable for the process is expected to be as follows:
| Milestone |
Date |
| Information Memorandum |
Week of September 26, 2011 |
| VDR opens |
Week of September 26, 2011 |
| Effective Date |
October 1, 2011 |
| Non-binding Proposals Due |
November 3, 2011 |
A detailed Information Memorandum will be available by visiting Scotia Waterous' website at www.scotiawaterous.com in late September. The Information Memorandum provides further detail on the process and the assets, including property descriptions, development opportunities, and summary reserve information from the consultants' NI 51-101 reports.
Confidential information will be available to parties that have executed a Confidentiality Agreement. Interested Parties should execute and deliver two copies of the Confidentiality Agreement to Scotia Waterous. Confidential information will be available in the on-line Virtual Data Room and the Physical Data Room.
To receive the Confidentiality Agreement, please contact one of the individuals listed below or visit www.scotiawaterous.com.
CONTACTS
Any questions related to the PennWest 2011 Asset Divestiture can be directed to a Scotia Waterous representative listed below:
| Scotia Waterous |
Mike Jackson
Managing Director
(403) 298-4096 |
Jeff Bowron *
Director
(403) 261-2377 |
David Baboneau
Associate Director
(403) 213-7348 |
Ryan Yates
Associate Director
(403) 261-2379 |
| * Identifies Key Contact Person |
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Scotia Waterous Inc.
Suite 1800, Scotia Centre
700 – 2nd Street SW
Calgary, Alberta T2P 2W1
Main : (403) 265-8077
Fax : (403) 269-8355
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