Penn West to sell $1.3B in assets

Calgary-based Penn West Petroleum Ltd. has agreed in principle to sell $1.3-billion worth of its non-core properties, representing the equivalent of 12,000 barrels per day of production.

The company says it will use funds from the sale to repay a portion of the money drawn on its credit facilities.

Penn West didn't specify the location of the assets to be sold, or the buyers, but said it expects the dispositions will close before Dec. 31.

The company has been positioning itself to concentrate on light-oil plays, particularly along the Cardium formation in southern Alberta.

Its shares closed up 19 cents, or 1.39 per cent, at $13.85 on the Toronto Stock Exchange Wednesday.