May 16 (Reuters) - Penn West Petroleum Ltd PWT.TO
* Average production of 77,010 BOE per day for Q1
* Maintaining 2016 total expenditures guidance of $70
million
* Engaged in discussions with lenders to ensure that have
necessary access to capital for remainder of 2016 and beyond
* "We have reduced our operating expense guidance to $17.00
- $18.00/BOE from $18.00 - $18.75/BOE" for 2016
* Qtrly FFO per share $0.09
* Qtrly loss per share $0.20
* 2016 annual average production guidance remains unchanged
* Discussions with lenders ongoing; targeting to have
lenders agreements amending financial covenants signed prior to
end of Q2
* Amendments with lenders would allow co to continue to
focus on strengthening our balance sheet and reducing our debt
level
* Benefited from lower than anticipated cost environment
which meaningfully reduced costs in last 4 months of 2015 below
accruals
* Annual production guidance remains unchanged at 60,000 -
64,000 BOE per day
* "We were not in default at march 31, 2016 on any financial
covenants under agreements with our lenders"
* There is a risk that company will not be in compliance
with its financial covenants at end of Q2 of 2016
* Risk of default resulted in uncertainty on company's
ability to continue as a going concern
* "We believe we are on track to meet our target to reduce
our absolute operating costs by about 20 percent on a year over
year, same field basis"
* Continuing to pursue asset dispositions, considering
options including obtaining additional sources of capital from
strategic investors
* If current low commodity price environment continues, co
not able to certify, following end of Q2, compliance with senior
debt to EBITDA or total debt to EBITDA financial covenants at
June 30, 2016
* Penn West announces its financial and operational results
for the first quarter ended march 31, 2016
Source text for Eikon: ID:nCNWRGhwha
Further company coverage: PWT.TO
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