Deal insight

Penn West Exploration sells all its Saskatchewan assets to Teine Energy for US$767 million

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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.

What's included

This report contains

  • Document

    Penn West Exploration sells all its Saskatchewan assets to Teine Energy for US$767 million

    PDF 640.51 KB

Table of contents

  • Executive summary
  • Transaction details
  • Upstream assets
  • Deal analysis
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions

Tables and charts

This report includes 9 images and tables including:

Images

  • Penn West Viking Production/Cash Flow
  • Penn West Well Locations

Tables

  • Executive summary: Table 1
  • Deal analysis: Table 1
  • Deal analysis: Table 2
  • Deal analysis: Table 3
  • Oil & gas pricing and assumptions: Table 1
  • Oil & gas pricing and assumptions: Table 2
  • Upstream assets: Table 1

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