Canadian oil and gas producer Penn West Petroleum Ltd raised its 2017 capital budget to $180 million from $150 million, and said it expected a 15-per-cent increase in production from core areas.
The increases come amid signs the siege mentality that permeated all parts of Canada’s energy industry is lifting after more than two and a half years of slumping prices.
Penn West said it expected 2017 production of 27,000-29,000 barrels of oil equivalent per day (boepd) in its key development areas. The company said in November it expected 10 per cent core production growth in 2017.
Based in Calgary, Penn West operates primarily in the Cardium, Viking and Peace River areas of Alberta.
The company on Thursday reported 2016 production of 55,000 boepd, at the high end of the forecast it provided in November.
Penn West, whose Toronto-listed stock has more than doubled in value in 2016, said it spent about $80 million on exploration and development last year.
Penn West also announced that chief financial officer David Dyck, and Gregg Gegunde, senior vice-president of Exploitation, Production and Delivery, will be leaving the company. Mr. Dyck has served in his current role for nearly three years, and Mr. Gegunde has served Penn West for over 18 years in a variety of leadership roles.
David Hendry, vice-president of finance, will take over from Mr. Dyck as the company’s CFO.Report Typo/Error