Canadian Oil

[Arctec]

Penn West Energy To Buy Oil, Gas-Producing Properties


17:44 EST Friday, February 09, 2007

DOW JONES NEWSWIRES

Penn West Energy Trust (PWT.UN.T) will acquire conventional oil and natural gas assets located in Alberta, currently producing about 3,200 barrels of light oil a day and 10.2 million cubic feet a day of natural gas, or about 4,900 barrels of oil equivalent a day.

The transaction is expected to close in March.

The purchase price of the asset package, prior to any reductions due to ROFRs, totals about C$339 million before closing adjustments of an estimated C$12 million, which will reduce the cash outlays on closing.

In addition to the acquisition, Penn West also plans a 2007 Peace River capital program of C$100 million that includes the drilling of 60 to 65 net wells and associated production infrastructure expenditures.

Penn West, Calgary, is a senior oil and natural gas energy trust.

-Wendy Tsau; 416-306-2100; [e-mail]


(END) Dow Jones Newswires
02-09-07 1744ET
Copyright (c) 2007 Dow Jones & Company, Inc.