Penn West Value Proposition Maximize return to shareholders through efficient development and production of established light oil resource Reliable Production Performance Improving Capital Efficiency Strengthening Balance…
Penn West Corporate Profile Oil Resource Leverage & Income Resource Assets Listing NYSE: PWE TSX: PWT Land Position Market Capitalization (1) 5.2 billion Shares Outstanding (2) 479 million Liquidity (shares/day) 3.0 million Cordova…
Penn West Resource Asset Growth 65% of Current Penn West Production 100,000 Seal JV -1,000 boe/d Cordova JV -2,800 boe/d Sifton +900 boe/d Spartan +2,500 boe/d SW SK -2,100 boe/d Shaunovan/Dodsland Swap -2,800…
Capital Strategy Highlights Resource Growth & Infrastructure Build Out Secondary EOR Primary Recovery Technology / Resources Technology Resource Capture & 300MM Land Growth Facility & Infrastructure 375MM Infrastructure…
Capital & Production Strategy 2013 Base capital spending 900 million with conditional incremental capital 300 million Production forecast 135 145 mboe/d Improve production reliability Target corporate capital efficiency 35k…
Capital Efficiency Step change into 2013 (CE = Capital / Production additions at exit) Allocation for capital efficiency 2013 operational efficiency savings Reorganization of operating groups 60,000 Industry average…
2013 Capital Budget Capital Allocation by Play (900MM and +300MM Cases) Spearfish Slave Point Optimization +300 North Central Conditions for increased spending 2013 E&D Capital EOR Commodity prices (725mm) South Realized…
Improving Business Performance Integrated Execution Slave Point Production Performance 2013 Q1 - 4.8MM R&M focus on shortening execution cycle 2012 H1 - 6.7MM Revamping of field processes Proactive pipeline replacement…
Penn West Oil Marketing Strategy Actively Hedge Hedge WTI Hedge differentials (Edmonton/WTI and WTI/LLS) Control Barrels to Refiners Direct market to refiners Selective use of rail Establish strategic, long term, multi-stream supply…
R15 R10 R5W5 Penn West Well location Conoco Encana Drilled well Producing well Exploration Enerplus Shell 15 kms T55 Duvernay Willesden Green Sinopec Daylight Talisman 10 miles Vermilion Evolving Major Resource Play Strategic…
Business Performance Resource / Base Capital Efficiency & Production Performance Cordova 5.7 million acres Slave Point Largest concentration of light oil in Western Canada Peace River Swan Hills Cardium Duvernay Viking…
Reserves / Resources 676 mmboe of P+P(1) reserves at December 31, 2012 Replaced 180% production in 2012 Average light oil resource net back at 90 WTI 60/boe Substantial potential reserves upside 2012 2P Reserves Reserves Booking…
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