Strategy and Overview
The objective of Penn West Energy Trust is to be one of Canada’s top-performing energy trusts as measured by production and reserves per unit and the stability of distributions to unitholders.
Penn West’s operational strategy is to stabilize production through active management that focuses on the efficient reinvestment of a proportion of cash flow into opportunities for internal development and external acquisitions. This strategy includes maintaining a substantial capital program.
To implement its strategy, Penn West has an experienced and proven management team with a long track record of success. For biographies of key management personnel, click here.
Penn West’s core areas, provide a wide range of conventional and optimization opportunities such as:
- Production and facility optimization and enhancements to improve capital efficiencies;
- Low-risk exploitation and development drilling;
- Enhanced or tertiary oil recovery programs;
- Oil sands development; and,
- In conjunction with third parties, participation in exploration drilling.
As at December 31, 2007 |
Exit production |
Proved+Probable Gross Reserves (mmboe) |
Undeveloped Land Net Acres (000's) |
||
Natural Gas (mmcf/day) |
Oil & NGL (bbls/day) |
Total (boe/day) |
|||
 |
|||||
Northern |
106 |
1,820 |
19,509 |
54.1 |
1,008 |
Central |
137 |
36,709 |
59,435 |
250.7 |
1,253 |
Plains |
89 |
35,195 |
50,048 |
177.2 |
964 |
Total |
332 |
73,724 |
128,992 |
482.0 |
3,225 |
|
|||||
43% of daily production |
57% of daily production |
||||
For more information on Penn West’s production, click here.
EOR growth opportunities
A major opportunity to create added value for unitholders over the long term is Penn West’s program for enhanced oil recovery through carbon dioxide ("CO2") miscible flooding at the massive Pembina Cardium and Swan Hills light oil pools. Penn West has developed the required technical expertise through its four years of operating experience at Joffre, the only commercial CO2 miscible flood in Alberta .
In 2004 Penn West built and is currently operating a grassroots CO2 miscible flood pilot project in the Pembina Cardium pool, aimed at demonstrating the commercial applicability to this multi-billion-barrel oil pool. For more information on this program, click here.
Oil Sands opportunities
Penn West believes its grass roots development in the Peace River Oil Sands area has significant upside potential. With a large undeveloped land base of over 300,000 net acres, Penn West believes that secondary and tertiary production methods may be used to increase future recovery factors. For more information on the Peace River Oil Sands, click here.
Undeveloped lands
Penn West is exploiting its exceptionally large base of undeveloped lands (3.2 million net acres at the end of 2007) by farming out drilling opportunities to exploration companies. Penn West will retain an interest in these lands, creating strong potential to generate incremental production and cash flow to enhance future distributions to unitholders. For more information on our land strategy, click here.
Acquisitions policy
In pursuing potential corporate or property acquisitions, Penn West is committed to practicing financial discipline, conducting transactions that are genuinely accretive to reserves, production, cash flow and distributions per unit. Penn West has a 15-year track record of performing financially beneficial and operationally complementary acquisitions.
Financial discipline
Penn West mitigates business and commodity risks and enhances the stability of distributions to its unitholders through an active commodity and electricity hedging program, by maintaining a balanced portfolio of assets producing a range of commodities, and by practicing financial discipline, including maintaining prudent levels of debt. To view a summary of Penn West's financial highlights, click here.
