Conventional Development and Optimization
Lower commodity prices demand a producer focus on drilling opportunities offering the greatest incremental production at the lowest capital cost, as well as on improving operating efficiencies to reduce costs per unit of production. This is Penn West's main focus in 2009. Thanks to the Company's diversified asset base across western Canada, producing virtually every hydrocarbon type, Penn West has a large rolling inventory of opportunities viable at today's prices, and can achieve measurable results within months of initiating activities.
Penn West's asset base includes numerous large hydrocarbon pools, approximately 7 million acres of developed and undeveloped lands, and a vast array of infrastructure - gathering systems, compressors, processing plants, oil batteries and field operating teams. The final ingredient is improving technology, including the latest 3-D seismic that allows accurate targetting of smaller reservoir "sweet spots".