Annual General Meeting Calgary, Alberta June 8, 2010
Setting the Course for the Future Restoring financial strength Empowering corporate responsibility Building the right team Focusing on prospects, innovation, and potential 3
Setting the Course for the Future Financial Strength Strong Balance Sheet - June 2008 - 4.8 total debt - 77% short term - June 2010 - 2.5 total debt - 36% short term Debt diversification - 64% of debt in long term notes Credit…
Setting the Course for the Future Credit Capacity 1.75 billion Total Debt undrawn** Bank Debt 0.5 billion Private Debt 500 1.6 Convertible billion million Debentures*** drawn* 273 million * Pro Forma debt at March 31,…
Setting the Course for the Future Corporate Responsibility CAPP Stewardship Platinum level since 2002 Strong and respectful working relationship with First Nations and Mtis in western Canada Leader in CO2 capture and storage in…
Setting the Course for the Future Management Team Revitalized management team over the past three years: Murray Nunns Mark Fitzgerald President and Chief Operating Officer Senior Vice President, Production David Middleton Thane…
Setting the Course for the Future Conversion Capital budget of 700 to 800 million necessary to maintain current production levels Focus funds to increase pace of development in key play areas anticipate 150 to 200 million for…
Focus on Prospects Calgary, Alberta June 8, 2010
producer of light & medium oil in western Canada 10
Horizontal Technology U.S. vs. Canadian Field Development Permian Basin Pembina Cardium Odessa, Texas Drayton Valley, Alberta 5 acre well spacing 80 acre well spacing 13
Infrastructure Advantage 14
Strategic Portfolio Management Wildboy North Central Carbonates Peace River Oil Sands Eastern Alberta Cardium Dodsland Waskada Penn West land position 15
Prospect Inventory Cumulative 1% Resource Incremental OOIP / OGIP Production Recovery Light Oil 8.5 B bbls 14% 85 million bbls Gas 18 Tcf 2% 180 Bcf Oil Sands 2.75 B bbls 0% 27.5 million bbls Discovered Petroleum Initially in…
Unlocking Oil in Place Cardium West Central Alberta 17
West Central AB - Cardium Program Summary 880 sections (net) Pembina Buck 2,400 wells (net) Lake West Ferrybank Pembina Willesden 25,000 boe/d current production Green Leafland 10 billion bbls OOIP Strachan 30 kms 20…
Light Oil Resource Plays 2010 50 net wells net 880 sections well 2,000 + inventory Cardium Penn West land position 20
Light Oil Resource Plays 2010 60 net wells net 125 sections well 1,000 inventory Cardium Waskada Penn West land position 21
Light Oil Resource Plays 2010 70 net wells net 280 sections well 1,000 inventory Cardium Dodsland Waskada Penn West land position 22
Light Oil Resource Plays 2010 25 net wells Devonian net Carbonates 300 sections well 200 + inventory Cardium Dodsland Waskada Penn West land position 23
Gas Resource Plays Wildboy Eastern Alberta Penn West land position 24
Unlocking Oil in Place Peace River Central Alberta 25
Peace River Oil Partnership Program Summary 237,000 acres T86 10 kms Nampa 5 miles 70 stratigraphic wells Cadotte Seal Harmon North T84 Valley 84 hz wells Harmon Harmon Valley Valley West South T82 2,700 boe/d current…
Peace River Oil Partnership Key Points Penn West contributes: 106,650 acres (45% of 237,000 acres) 1,215 boe/d (45% of 2,700 boe/d) 56 million go forward investment (10% of PWTs 55% interest) Partner contributes: 312 million…
Peace River Oil Partnership Strategic Rationale Establish key technical and financial relationship Increase pace of development (primary and thermal) Operate Peace River as a stand alone project reflecting its uniqueness in Penn…
Growth Yield 29
Total Shareholder Return Fairness To All Stakeholders 30
Penn West Total Return vs. Indices 2009 2010 (18 months) Penn West 100% S&P/TSX Capped Energy Trust S&P/TSX Capped Energy 80% S&P/TSX 60 S&P/TSX Composite 60% 40% 20% 0% -20% -40% Jan Feb Mar Apr May Jun Jul Aug Sep…
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