Penn West Petroleum Ltd. (NYSE: PWE) said April 18 it has closed the sale of Slave Point area properties in Northern Alberta to an undisclosed buyer for C$148 million (US$114.7 million) in cash.
The company also closed about C$50 million of its previously announced noncore asset sales of C$80 million. It has also entered into a definitive agreement to sell the balance of such noncore assets for cash consideration of C$30 million, subject to closing adjustments. The sale is expected to close in the second quarter, the release said.
"Although Slave Point has long been one of our core assets, given the current outlook for commodity prices, we had no development activity planned for at least the balance of this year," said David Dyck, senior vice president and CFO, in a statement.
Proceeds from the sale of Slave Point and other noncore assets will help to strengthen the Calgary, Alberta-based company's balance sheet. It will also improve its financial flexibility and overall corporate metrics, Dyck added.
"While we believe that Slave Point offers upside, the extension of our Viking play and recent Cardium performance provide us with ample development and growth opportunities and the most attractive rates of return in our portfolio," he said.
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