November 5, 2010 / 5:42 PM / in 8 years

UPDATE 1-Penn West pushed to loss as output falls

* Q3 loss of C$0.06 vs profit of C$0.02/unit

* Funds flow down 24 pct to C$0.58/unit

* Production falls 7.9 pct

CALGARY, Alberta, Nov 5 (Reuters) - Penn West Energy Trust PWT_u.TO reported a third-quarter loss on Friday on lower oil production.

The trust posted a net loss of C$25 million ($25 million), or 6 Canadian cents per unit, down from a profit of C$7 million, or 2 Canadian cents, in the third-quarter of 2009.

Analysts, on average, had expected a loss of 8 Canadian cents per unit, according to Thomson Reuters I/B/E/S.

Despite the loss, the trust, which plans to revert to a corporation by the beginning of 2011, raised capital spending by C$150 million to C$1 billion in order to take advantage of robust oil prices.

In 2011, Penn West plans to begin appraisal work on properties included in two joint venture agreements signed this year, included a shale gas development with Japan’s Mitsubishi Corp (8058.T) and an oil sands project with China Investment Corp [CIC.UL].

Funds flow, used to pay distributions to investors, fell 24 percent to C$267 million, or 58 Canadian cents per unit, from C$349 million, or 83 Canadian cents.

Revenue fell 1.8 percent to C$719 million.

Penn West production fell 7.9 percent to 164,087 barrels of oil equivalent per day from 178,124 boed as a wet summer in Western Canada delayed field work.

Penn West units fell 20 Canadian cents to C$23.68 early on Friday afternoon on the Toronto Stock Exchange.

$1=$1.00 Canadian Reporting by Scott Haggett; editing by Rob Wilson

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