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June 10 (Reuters) - Canadian energy producer Penn West
Petroleum Ltd PWT.TO PWE.N said on Friday it would sell its
Viking light oil assets for $975 million to Teine Energy, which
is backed by the Canada Pension Plan Investment Board.
Penn West, which has come under financial pressure in recent
weeks over its large debt burden, will also sell some of its
assets in Alberta for about $140 million.
The Calgary-based company said the cash obtained from the
sale of its assets would lower its pro forma net debt to about
$600 million. It had C$1.86 billion ($1.46 billion) in debt as
of March 31.
Last month, Penn West said it might default on its debt at
the end of the second quarter, as a slump in oil prices over the
past two years have hurt highly leveraged companies.
Reuters reported this week that Penn West had received at
least four bids from companies for its Viking light oil assets,
including Teine Energy.
Teine Energy said the deal would be funded by the Canada
Pension Plan Investment Board and its existing credit
facilities, according to a statement.
The Canada Pension Plan Investment Board owns 77 percent of
Teine Energy, a Saskatchewan-focused energy producer, and has
been an investor since 2010.
J.P. Morgan Securities acted as Teine's financial advisor to
Teine, while RBC Capital Markets advised Penn West.
($1 = 1.2777 Canadian dollars)