Penn West Profile Listing NYSE: PWE TSX: PWT Market Capitalization(1) 12 Billion Shares outstanding (YE) 458 million Liquidity (shares/day) 3 million Production (Q4 2010) 166,000 boe/d Light oil & NGLs 88,000 boe/d (53%) Heavy oil…
producer of light & medium oil in western Canada
% Proved Oil Reserves 5 % Horizontally Booked 73 1P 1P to to 2P % 2P Ratio Ratio Oil Gas BOE Proved 337 mmbbls 865 bcf 481 mmboe Proved and Probable 454 mmbbls 1,235 bcf 661 mmboe
Our Business Credit Capacity Total Debt (YE 2010) 3 year Bank Facility at 2.25 billion - Amount drawn 750 million - Covenant based 750 million 1.8 billion in Private Notes** drawn* - Average remaining term of 7 years - Average…
North American Resource Plays Cordova Horn River Peace River Montney Carbonates Duvernay CANADA Cardium Colorado Shaunavon Waskada Bakken Utica Niobrara U. S. A. Marcellus Monterey Granite Wash Woodford…
Western Canada Emerging Resource Plays in Conventional Tight Reservoirs 100 Billion barrels of conventional OIP recognized in Western Canadian Sedimentary Basin. Approximately 20% recovered to date with significant contribution…
Western Canada Emerging Resource Plays in Conventional Tight Reservoirs In the early development stage on tight oil resource plays Work to date has yielded production and reserves growth with strong returns on investment…
Emerging Resource Plays Infill Drilling on Big Resource 1 Tight Oil Target: 1020 billion bbls OOIP Early Development 2 Oil/Gas Resource Plays Target: 510 billion bbls OOIP Exploration 3 Source Rock 10
Horizontal Frac Technology 8 Vertical wells = 12 million Capital 1 Horizontal (20 Fracs) = 3 million Capital Complete Re-Evaluation of Basin Prospectivity 11 11
Penn West Large Resource Plays Cordova Penn West has the most leverage to emerging resource Carbonates plays in western Canada Peace River Cardium Colorado Penn West land position Waskada 12
Active Rig Count Alberta Gas Reference Rig Count Price (/GJ) 650 7.00 600 * 6.00 550 500 5.00 450 400 4.00 350 300 3.00 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 * Rig count growing with focus on oil resource plays…
Drilling Activity Penn West operating: 31 drilling rigs as of March 15, 2011 Breakdown by play type: Cardium light oil* 8 rigs Carbonates light oil* 5 rigs Waskada light oil* 5 rigs Peace River oil project* 5 rigs Cordova shale…
Our Business Current Well Inventory 10,000+ well inventory 2,500 (90% focus on resource plays) 2,000 Oil Gas 1,500 Drilling Locations 1,000 500 0 do da es OP a ys do m ov iu a at…
2011 Capital Program Approximately 800 million of 2011 capital budget to maintain production at 2010 level 300 400 million targeted for incremental production growth of 5 6 percent Incremental funds flow above forecast (80 WTI/4…
Resource Plays Focus Areas 2011 Capital Program Focus Resource EUR Target IRR* Capital Cost 3 month Play (boe /well) (full cycle) (DCE&T /well) Exit Rate Cardium 200,000 45% + 3.0mm 165 boe/d Waskada 90,000 60% + 1.3mm 95…
Our Business Unlocking Energy Cardium West Central Alberta
Cardium Resource in Place Resource Window Penn West Resource Play type: Tight sand Vertical depth: 1,800m Hz length: 1,400m Cardium Avg Frac: 20 stages20T thickness 20m Targeted OIP: 5 B bbls 21
2010 Operational Update Key Takeaways 35 Hz wells drilled in 2010 32 wells YTD in 2011 90 day exit rate 165 boe/d/well Increased focus on Willesden Green, Alder Flats, & West Pembina (90 day exit rates of 220 boe/d/well)…
Cardium 2011 Full Scale Development R10W5 Acreage East Pembina 500,000 net acres 15% Budget Current Inventory 2,500+ locations T47 Capital West Pembina 300 - 325mm 35% Budget Alder Flats 15% Budget Target Economics (project)…
Cardium Pad Drilling Benefits - Reduced costs - Greener footprint Efficiencies (Pembina Pilot) - Lease construction cost down from 600,000 to 250,000 - Drill times down from 18 days to 12 days - Rig move cost down from…
Our Business Unlocking Energy Waskada Southwest Manitoba
Waskada Resource in Place Resource Window Penn West Resource Play type: Tight Sand Vertical depth: 900m Amaranth Hz length: 800m thickness 25 30m Avg Frac: 20 stages5T Targeted OIP: 1 B bbls 26
2010 Operational Update Waskada 75 wells drilled in 2010 45 wells YTD in 2011 90 day exit rate 95 boe/d/well Production growth from 500 boe/d to 7,000 boe/d over past 18 months Increased use of pad drilling to reduce costs…
Waskada 2011 Development R25 R23W1 Melita Acreage 75,000 net acres Pen T3 nW Current Inventory est 1,500 locations Sal es L in Capital e 140 - 175mm Waskada Target Economics (project) Waskada F&D 15 -…
Our Business Unlocking Energy Colorado Plains Area
Colorado Group Development FIRST WHITE Resource SPECKLED SHALE Gas Penn West Resource Window UPPER MEDICINE HAT Gas (Viking Play) thickness UPPER COLORADO Play type: Tight sand COLORADO GROUP SHALE 200 300m Vertical…
2010 Operational Update Colorado (Viking) 94 Hz wells drilled in 2010 36 wells YTD in 2011 90 day exit rates: 55 boe/d/well, Greater Dodsland oil 85 boe/d/well, Altario gassy oil Opened new development areas at Kerrobert and…
Colorado 2011 Development R25 R20 R15W4 Acreage 10 kms 750,000 net acres 5 miles Kerrobert Current Inventory 25% Budget T35 1,000 oil locations Kerrobert 1,500 gas locations Capital En B ridg Dodsland e 80 - 100mm Coleville…
Our Business Unlocking Energy Carbonates Central Alberta
Carbonates Trend Resource Reef Penn West Resource Active Edge Platform Play type: Carbonate Reefs Platform Active Edge Vertical depth: 2,300m Drill Density 4 12 wells 0 4 wells 4 8 wells Hz length: 1,400m (per section) Avg…
2010 Operational Update Carbonates 18 Hz wells drilled in 2010 16 wells YTD in 2011 90 day exit rate 190 boe/d/well Developing pad technology and completion technology to reduce capital costs Working through assessment stage…
Carbonates 2011 Appraisal to Development Sawn Lake T90 Red Acreage Otter Earth Otter/Sawn Lake 200,000 net acres 60% Budget Current Inventory Peace River Slave 500 locations PROP Capital n ve 125 - 150mm Rai ge l…
Our Business Unlocking Energy Peace River Oil Project Central Alberta
Peace River Oil Partnership Appraisal R19W5 R15 Pl ai ns Acreage Partnership 170,000 net acres Interest 55% TCPL T85 2010 2011 Capital 100mm gross (5mm net) Peace River 2010 - 2011 Activity r ve 12 Hz wells a ce Ri Pe 50+…
Our Business Unlocking Energy Cordova Shale Gas Northeast British Columbia
Cordova Embayment 2011 Appraisal 94-P-13 Cordova 5 kms Embayment 5 miles Acreage (net) Slave Point Shale gas 175,000 acres Platform Horn Capital Appraisal River Area 160mm gross Basin 40mm net Wildboy Sales Line Targeted Wells 2011…
The Future Full Bore Ahead
Re-exploring Western Canada Penn West Uniquely Positioned Maximum play exposure with strong land position in western Canadas resource plays Focused on light oil resource plays in near term Strong development portfolio will enable…
Royalty Incentive Western Canada British Columbia 1 2% royalty rate Alberta 5% royalty rate, 60,000 90,000 boe or for 24 42 months Horizontal drilling programs between 2,500 4,000m Dual leg horizontal drilling programs, 48…
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