Deal Insight
Penn West Exploration sells all its Saskatchewan assets to Teine Energy for US$767 million
Report summary
Penn West is selling all of its Saskatchewan assets, including its Dodsland Viking properties, for cash consideration of US$767m. This price represents a small discount to the value that Wood Mackenzie places on these assets. The assets currently produce approximately 13,610 boe/d (87% liquids). The purchaser is Teine Energy Ltd., a pure play Viking producer backed by the Canada Pension Plan Investment Board. In a separate transaction, Penn West concurrently announced the sale of non-core assets for US$110m. Significant capital constraints prohibited Penn West from rapidly developing its Saskatchewan assets. We believe that an established and well capitalised Viking producer like Teine is a strong candidate to develop these assets sooner. It is likely that they will realize significant cost saving synergies by adding these assets to its existing Viking portfolio and infrastructure network.
Table of contents
- Executive summary
- Transaction details
-
Upstream assets
- Saskatchewan
- Deal analysis
- Upsides and risks
-
Strategic rationale
- Penn West
- Teine Energy
- Oil & gas pricing and assumptions
Tables and charts
This report includes 9 images and tables including:
- Executive summary: Table 1
- Deal analysis: Table 1
- Deal analysis: Table 2
- Deal analysis: Table 3
- Penn West Viking Production/Cash Flow
- Oil & gas pricing and assumptions: Table 1
- Oil & gas pricing and assumptions: Table 2
- Penn West Well Locations
- Upstream assets: Table 1
What's included
This report contains:
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