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Jan 28 (Reuters) - Canadian oil and natural gas producer
Penn West Petroleum Ltd PWT.TO cut its 2016 capital budget by
as much as 90 percent from a year earlier, to weather a steep
plunge in crude oil prices.
The company, which cut its capex to C$50 million ($35
million), said it expects to produce 60,000-64,000 barrels of
oil equivalent per day this year, about 30 percent lower than
its 2015 production estimate.
Penn West had cut its 2015 capital budget three times,
eliminated about 35 percent of workforce in September and
stopped paying dividend from October.
"Given the present state of the commodity price environment,
our 2016 capital budget reflects the reality of living within
our means at current price levels and managing the business on a
week-to-week basis," Chief Executive Dave Roberts said in a
statement on Thursday.
Penn West said it continued to be in talks with potential
buyers to divest non-core assets.
The Calgary-based company said proceeds from any asset sale
would be used to cut debt rather than to fund capital program.
Up to Wednesday's close of 98 Canadian cents, Penn West
shares had more than halved in 12 months on the Toronto Stock
Exchange.
($1 = 1.4091 Canadian dollars)