Development

Penn West's Board of Directors has approved a capital budget of $625 million for 2015, with approximately 90 percent of investment directed toward volume adding activities. The development program also includes integrated enhanced oil recovery (“EOR”) investments across our core areas. As in past years, the expectation is that development capital will be allocated approximately 25% - 30% of total year spending in quarters one, three and four with the small remainder allocated during the spring break-up period in the second quarter.

The 2015 budget was forecast on the following assumptions:

2015 Capital Budget Assumptions
Canadian Light Sweet - Crude Oil assumption (C$/bbl) $65.00
AECO Natural Gas assumption (C$/mcf) $3.25
C$/US$ Foreign Exchange assumption $1.15
Production (boe/d) 90,000 - 100,000
Capital Budget (MM) $625
Funds Flow (MM) $500 - $550