Penn West plans to repay notes, pay down its bank debt via asset sale

By Wendy Van Sickle

Columbus, Ohio, June 24 – Penn West Petroleum Ltd. plans to offer net cash proceeds from a C$975 million asset sale to its lenders and noteholders at par on a pro rata basis, according to a press release.

The company announced on Friday the closing of the sale of its Saskatchewan assets.

“We expect to be in full compliance with all of our financial covenants at the end of the second quarter and anticipate the removal of the going concern note from our financial statements in the near future. As the benefits of our improved capital structure become more visible to investors over the coming months, we believe the market will close the valuation gap in our stock price,” David Dyck, senior vice president and chief financial officer of Penn West, said in the release.

The company said it will continue to execute on the second phase of its asset disposition program over the coming months.

Penn West is a Calgary, Alta.-based energy company.

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