(Reuters) - Canadian oil producer Penn West Petroleum Ltd PWT.TO PWE.N said it would sell its assets in Mitsue in Central Alberta for C$192.5 million ($145.4 million) in cash to reduce debt.
The company said it would have raised C$605 million this year by divesting its non-core assets upon the closing of the Mitsue deal.
Penn West had long-term debt C$2.21 billion as of June 30.
The company lowered its budget and cut jobs this month and said it would only spend cash it earned from operations.
The company had also cut its 2015 production forecast to 86,000 to 90,000 barrels of oil equivalent per day (boepd) from 90,000 to 100,000 boepd.
The company's Toronto-listed shares have fallen more than 91 percent in the last 12 months.
Reporting by Anannya Pramanick in Bengaluru