Penn West nearly doubles capital spending plans
The company has also announced changes to senior management.
Oil & Gas
Alberta oil sands
penn west petroleum ltd.
CALGARY — Penn West Petroleum Ltd. is preparing to boost drilling activity and production output in 2017 with a $180-million capital budget – nearly double what it allocated last year.
The Calgary-based company spent much of 2016 selling assets and grappling with its debt amid low crude prices.
Its 2017 budget includes $160 million for exploration and development and $20 million for decommissioning expenses.
That compares with $80 million for exploration and development and $15 million for decommissioning in 2016.
Its 2017 plan calls for production in its key development areas to be 15% higher by the fourth quarter, compared with the same period of 2016.
Penn West also announced a change in senior management, with the departures of chief financial officer David Dyck and senior vice-president for exploration and production, Gregg Gegunde.
David French, who has been Penn West’s president and CEO since replacing David Roberts in October, said the departures “reflect a natural evolution of the company” as it evolves into a smaller company.
Penn West said its new chief financial officer is David Hendry, who has been vice-president of finance for two years.