Penn West Petroleum Announces Financial Results

Business Wire, Nov 12, 1997

CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 12, 1997--Penn West(TSE:PWT.) PENN WEST PETROLEUM LTD. (TSE - PWT) is pleased to announce its results for the three and nine months ended September 30, 1997. Gross revenues for the three months ended September 30, 1997 increased 22 percent to $52.6 million from $43.2 million for the same period in 1996. Cash flow for the third quarter increased by 27 percent to $28.1 million ($0.70 basic or $0.68 fully diluted per share) from $22.1 million ($0.63 basic or $0.61 fully diluted per share) for the third quarter of 1996. Net income increased by 40 percent to $7.8 million ($0.20 per share) for the third quarter of 1997 versus $5.6 million ($0.16 per share) for 1996.

Gross revenues for the nine months ended September 30, 1997 increased by 29percent to $156.5 million from $121.2 million for the same period in 1996. Cash flow increased by 43 percent to $86.2 million ($2.17 basic or $2.12 fully diluted per share) from $60.2 million ($1.72 basic or $1.66 fully diluted per share). Net income for the first nine months of 1997 increased by 96 percent to $26.5 million ($0.67 per share) from $13.5 million ($0.39 per share) in the same period in 1996. -0-

                    Three months ended     Nine months ended
                       September 30             September 30
                    --------------------  --------------------
                    1997   1996  Percent  1997   1996  Percent
                                  Change                Change
                    --------------------  --------------------
FINANCIAL
($ thousands, except
 per share amounts)

Gross revenues    $52,647  $43,193   22 $156,463  $121,202 29

Cash flow from
 operations       $28,071  $22,123   27  $86,163   $60,162  43

 Basic per share     0.70     0.63   11     2.17      1.72  26
 Fully diluted
  per share          0.68     0.61   11     2.12      1.66  28

Net income         $7,820   $5,601   40  $26,481   $13,532  96
 Per share           0.20     0.16   25     0.67      0.39  72


PRODUCTION

Oil and natural gas
 liquids:
 Barrels per day   12,890   11,703   10   12,419    11,416   9
 Operating Netback
  ($ per Bbl)
   Sales price     $21.30   $22.41   (5)  $22.14    $20.83   6
   Royalties         3.90     4.46  (13)    4.14      4.18  (1)
   Operating costs   6.26     5.60   12     6.11      5.67   8
                   ------   ------        ------    ------
   Netback         $11.14   $12.35  (10)  $11.89    $10.98   8
                   ------   ------        ------    ------
                   ------   ------        ------    ------

Natural gas:
 MMcf per day       173.0    133.0   30    161.7     127.4  27
 Operating Netback
  ($ per Mcf)
   Sales price      $1.72    $1.55   11    $1.84     $1.60  15
   Royalties         0.27     0.17   59     0.26      0.20  30
   Operating costs   0.33     0.37  (11)    0.35      0.36  (3)
                    -----    -----         -----     -----
   Netback          $1.12    $1.01   11    $1.23     $1.04  18
                    -----    -----         -----     -----
                    -----    -----         -----     -----

                   Three months ended      Nine months ended
                     September 30            September 30
                 ----------------------  ---------------------
                 1997     1996  Percent   1997   1996  Percent
                                Change                 Change
                 ----------------------  ---------------------

CAPITAL EXPENDITURES
  ($ thousands)
Net of dispositions
                $41,546  $31,875   30  $150,610  $81,861   84
                -------  -------       --------  -------
                -------  -------       --------  -------


                  Three months ended      Nine months ended
                     September 30           September 30
                --------------------    --------------------
                              Percent                Percent
                1997    1996  Change    1997   1996   Change
                --------------------    --------------------

COMMON SHARES OUTSTANDING
 (thousands)

 Weighted average:
  Basic       39,869    35,103    14    39,727   35,051   13
              ------    ------          ------   ------
              ------    ------          ------   ------
Fully
   diluted    43,478    38,398    13    43,257   38,216   13
              ------    ------          ------   ------
              ------    ------          ------   ------
End of quarter:
 (as of September 30)
  Basic                                 39,972   35,199   14
                                        ------   ------
                                        ------   ------
  Fully diluted                         43,498   38,515   13
                                        ------   ------
                                        ------   ------

                   Three months ended    Nine months ended
                       Septemer 30          September 30
                   -------------------  ------------------
                      1997     1996      1997      1996
                   Gross Net Gross Net Gross Net Gross Net
                   ------------------- -------------------
WELLS DRILLED

Natural Gas        9    6.0   5   1.5  60  52.9  34  23.2
Oil               33   29.8  17  15.1  50  46.8  45  38.6
Dry                9    9.0   3   3.0  19  18.2  14  13.2
                 --------------------  ------------------
Total             51   44.8  25  19.6 129 117.9  93  75.0
                 --------------------  ------------------
                 --------------------  ------------------
Success rate
 (percent)             80          85        85        82
                 --------------------  ------------------
                 --------------------  ------------------