Financial & Capital Portfolio Management Scenarios WTI Price Financial Capital Protect Balance Sheet 65 Anticipate Maintaining Dividend for Short Term No Production Growth Maintain Balance Sheet Production Growth 85 Portfolio…
Financial Flexibility Capitalization Geographical Breakdown Credit Syndicate of Credit Syndicate 3.0 billion Asia 20 banks 10% 4 year revolver U.S. (1) Canada Private Notes 24% 58% 1.9 billion private notes 8% 6.0 year…
2011 Reserves Highlights (1) Proved : 498 mmboe (1) Proved plus Probable : 719 mmboe 5% Liquids account for over 70% of 2P; 74% of 1P 29% Replaced over 230% of 2011 production 56% and achieved overall 2P reserve growth (2) 10%…
Risk Management Penn West Oil Pipeline Transportation Strategy Penn West is targeting 50% direct transport Edmonton commitment and marketing Chicago Major Export Pipelines Cushing Keystone Keystone XL Wrangler /…
North American Peers Production 100,000 500,000 boe/d Liquids Exposure Gas Oil & NGL 100% Oil & NGL Production (%) 80% 60% 40% 20% 0% Source: Company reports 11
Current Drilling Inventory Drilling Inventory 10,000+ well inventory 8,000 Light oil inventory Potential Drilling Locations Carbonates produces average rates 6,000 of return of 25% - 65% Cardium 4,000 Viking 2,000…
Portfolio Management Capital Program & Business Evolution Assessment Appraisal Development 2012 Activity 85% Development 2012 2009 13
Penn West Production Primary Major Play Horizontal Contribution 2009 Forward boe/d 40,000 35,000 20% of Penn West 30,000 Production 25,000 Carbonates 20,000 Cardium 15,000 10,000 Viking Spearfish 5,000 Other 0…
Netback Increasing Profitability through Oil Development 100 New Oil 5% wellbores 20% of production 20% volume 75 35% cash flow Netback (/boe) 50 45% of production 25 35% of production 0 New Oil Old Oil Natural…
2012 Capital Program & Guidance Due to commodity price uncertainty & volatile differentials near-term capital investment will be slowed Expect net capital spending of approximately 1.2 1.25B Anticipated average annual production…
Tight Oil Development Penn West Light Oil Leverage Penn West has the most leverage to large Carbonates scale oil development using horizontal multistage technology in North America Cardium Viking Spearfish Penn West land…
R20 R1W5 170 miles Penn West land PW Forecast 2012 well PW 2011 well Carbonates Tight PW 2010 well Industry well Sawn Oil Development Lake Drilling Program Slave Point T90 Red Earth Otter Peace River Slave 235…
R10W5 T95 Penn West land PW Forecast 2012 well PW 2011 well Slave Point PW 2010 well Industry well Focused Development Existing & Planned Core Pipeline Senex Sawn T90 Otter Penn West Battery 5,000 Production Q2…
Slave Point Production Type Curve boe/d boe/d 300 Single Penn West average - single 600 Dual Penn West average - dual (Data set - 10 wells) (Data set - 1 well) P10 Industry & Penn West average 200 (Data set - 15 wells) 400 P50…
Resource Appraisal Cordova Shale Gas Joint Venture Peace River Oil Partnership EOR Penn West land position Exploration 22
Cordova Gas Project Resource Appraisal Cordova Shale Gas Major natural gas Joint Venture project aligned with Asian market through JV with Mitsubishi Corp Prince Rupert Kitimat Penn West land position British Columbia…
Cordova 94-P-13 Embayment Cordova Gas Project Appraisal Resource Appraisal Area Sales Line Wildboy Nova 94-P-8 Slave Point Platform 5 kms Horn 5 miles River Basin Penn West land PW 2011-12 Forecast Appraisal…
Peace River Oil Partnership Resource Appraisal Low Cost Appraisal of Peace River Large Oil Resource Oil Partnership for Production Growth in 5 year+ Timeframe Kitimat Penn West land position British Columbia 25
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