CALGARY, ALBERTA–(Marketwire – Nov. 5, 2009) – PENN WEST ENERGY TRUST (TSX:PWT.UN) (NYSE:PWE) is pleased to announce its results for the third quarter ended September 30, 2009
Corporate Strategy
- Penn West continued to focus on positioning the company to move from a trust to a corporate model prior to the end of 2011. In the future we will primarily use a combination of organic growth and dividends to provide a return on capital that will position us with the other senior independent North American oil and gas producers. Prior to the conversion to an exploration and production corporation, we will continue our focus on the advancement of our large scale resource plays within our existing suite of assets. As our results to date are promising, we will allocate a greater portion of our 2010 capital budget to drilling horizontal multi-stage frac wells within our oil resource plays. Our aim is to apply this technology to increase production and reserves from these large resources with a particular near-term emphasis on those plays that focus on crude oil, such as Waskada, Dodsland, Pembina and Leitchville. This will greatly expand our inventory of locations with a focus on reducing risk, while providing the type of scale necessary to move the company forward.
Operations
- Third quarter production averaged 178,124 (1) boe per day and was weighted 59 percent to oil and natural gas liquids.
- Production for the first nine months of 2009 averaged 179,600 boe per day which is at the higher end of our guidance of approximately 175,000 to 180,000 boe per day. During the first nine months of 2009, Penn West had net dispositions of approximately 3,000 boe per day.
- Crude oil and NGL production averaged 104,583 barrels per day and natural gas production averaged approximately 441 mmcf per day in the third quarter of 2009.
- Development capital expenditures were $171 million in the third quarter of 2009 or $142 million net of $29 million of net asset dispositions. In the quarter, we drilled a total of 36 net wells, including 29 horizontal multi-stage frac wells, with a success rate of 100 percent.
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