Penn West Energy announced it has entered into an agreement with a wholly-owned subsidiary of the China Investment Corporation to form a JV that will develop Penn West Energy’s bitumen assets located in the Peace River area of northern Alberta, Canada. China Investment has also agreed to purchase trust units of Penn West Energy on a private placement basis.
Penn West Energy Trust reported that at their Peace River heavy oil project production of 163,700 boe per day in the second quarter of 2010 decreased slightly from the 164,587 boe per day produced in the first quarter of 2010. The decline was mainly due to above average precipitation experienced throughout the second quarter, restricting their ability to tie-in production from recently completed drilling activity.
Penn West Energy Trust announced the first quarter production averaged 164,587 boe per day and was weighted 59 percent to oil and 41 percent to natural gas. The decrease from the fourth quarter of 2009 was due to the impact of the property transactions in late 2009 and in the first quarter of 2010. Net income was $77 million ($0.18 per unit-basic) in the first quarter of 2010 compared to a net loss of $12 million ($0.03 per unit-basic) in the fourth quarter of 2009 and a net loss of $98 million ($0.25 per unit-basic) in the first quarter of 2009.
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