UPDATE 1-Penn West sells Saskatchewan assets, cuts output forecast

Thu Oct 1, 2015 7:26am EDT
 
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Oct 1 (Reuters) - Canada's Penn West Petroleum Ltd announced its latest asset sale and also lowered it 2015 production forecast for the third time as it struggles with a huge debt load and slumping oil prices.

The company said it would sell its non-operated 9.5 percent stake in Weyburn unit, a conventional oilfield in Southeast Saskatchewan, for C$205 million ($154 million).

Penn West said that after the sale, it would have raised $810 million from asset sales. The company had long-term debt C$2.21 billion and C$89 million in cash as of June 30.

Last month, Penn West announced the sale of assets in Mitsue in Central Alberta for C$192.5 million in cash.

The company on Thursday also cut its 2015 production forecast to 84,000-88,000 barrels of oil per day (boe/d) from 86,000-90,000 boe/d.

Penn West had last lowered its forecast in September due to lower oil prices.

At that time, the company also cut its 2015 capital budget for the third time, lowered pay for its board, suspended its dividend and cut about a third of its workforce.

Up to Wednesday's close, the company's shares had fallen by 75 percent on the Toronto Stock Exchange this year. ($1 = C$1.30) (Reporting by Anet Josline Pinto in Bengaluru; Editing by Savio D'Souza)