Penn West Exploration Announces its Financial Results for the First Quarter Ended March 31, 2013 and the Appointment of a new

 Penn West Exploration Announces its Financial Results for the First Quarter
          Ended March 31, 2013 and the Appointment of a new Chairman

  PR Newswire

  CALGARY, Alberta, May 2, 2013

CALGARY, Alberta, May 2, 2013 /PRNewswire/ --

PENN WEST PETROLEUM LTD. (TSX - PWT; NYSE - PWE) ("PENN WEST") is pleased to
announce its results for the first quarter ended March 31, 2013. All figures
are in Canadian dollars unless otherwise stated.

BOARD OF DIRECTORS

The Board of Directors of Penn West (the "Board") has commenced a renewal
process. Effective May 1, 2013, Mr. Jack Schanck, a Director of Penn West
since 2008, assumed the position of Chairman of the Board. Mr. Schanck has
over 37 years of direct oil and natural gas industry experience in both Canada
and the U.S. including President of Unocol Canada, President of Spirit Energy
(the upstream domestic operation of Unocol Oil and Gas) and Co-CEO of Samson
Investment Company. Mr. Schanck's extensive experience in domestic and
international exploration, management, business strategy and directorship in
various organizations is a continuing benefit to the Board.

Penn West's former Chairman, Mr. John Brussa, stepped down from the Board
effective May 1, 2013. Mr. Brussa joined the Board in 1995 and was named
Chairman in 2005. During Mr. Brussa's tenure, Penn West grew from a junior oil
and natural gas producer to one of Canada's largest energy producers. Mr.
Brussa possesses a unique business acumen and insight which has been
instrumental in the progression of the company. The Board and Management of
Penn West thank Mr. Brussa for his extensive contributions over the past 18
years.

STRATEGY

With the potential of Penn West's resource base well established, from the
fourth quarter of 2012 forward the company has focused on maximizing the
efficiency of our programs and the reliability of our production base while
continuing to improve the balance sheet. These objectives are key to
demonstrating the profitability and the intrinsic value inherent in Penn West.

HIGHLIGHTS

In the first quarter, capital expenditures were on budget, anticipated
drilling and completion cost savings were realized and all planned development
activities were executed. Production to date is on target, wells were brought
on-stream on schedule, and execution of our base production reliability
initiatives are on plan.

  *Average production for the first quarter of 2013 was 142,804 boe ^(1) per
    day driven in part by improved production reliability and reduced repair
    and maintenance cycle times; annual 2013 average production guidance
    remains at 135,000 to 145,000 boe per day.
  *Exploration and development capital expenditures of $427 million were on
    budget; full year 2013 capital guidance remains $900 million.
  *Improvements in capital efficiencies and cost structures on all key plays
    were realized, driven by reductions in drill times and decreased
    completion costs in addition to improvements in field execution.
  *119 net development wells were drilled in the first quarter, consistent
    with plans.
  *First quarter light oil and natural gas liquids production comprised 82
    percent of total liquids production and received average prices of $80.75
    per barrel after hedging.
  *Hedges are in place on over 80 percent of forecast 2013 oil production,
    net of royalties, between US$91.55 and US$104.42 per barrel.
  *First quarter 2013 light oil and natural gas liquids price differentials,
    after price adjustments, were $14.43 per barrel (2012 - $23.16 per barrel)
    compared to benchmark WTI oil prices, narrower than internal expectations.
  *Funds flow ^(2) for the first quarter was $267 million ($0.55 per share -
    basic ^(2) ) ahead of internal expectations due to higher light-oil price
    realizations.

(1)Please refer to the "Oil and Gas Information Advisory" section below for
information regarding the term "boe".

(2)The terms "funds flow" and "funds flow per share-basic" are non-GAAP
measures. Please refer to the "Calculation of Funds Flow" and "Non-GAAP
Measures Advisory" sections below.

OPERATIONS UPDATE

Appraisal, land acquisition and facilities construction activities of the past
several years set-up forward operational efficiencies as well as a higher
level of predictability of well results. The 2013 capital program is focused
on plays that have been advanced to the full development stage. The
reliability of our production base has improved in 2013 with reduced cycle
times to restore temporary production interruptions, both scheduled and
unscheduled.

During the first quarter of 2013, drilling activity peaked at 21 rigs compared
to 38 rigs in the same period of 2012 with 119 wells drilled consistent with
our budget plan. For the full year 2013, the $900 million budget includes
drilling 160 to 180 net operated development wells, concentrated on light oil.
Development costs showed significant improvement from prior programs with
substantial reductions in drilling days and overall cycle times compared to
prior programs.

Spearfish 

This play is a key focus area in 2013 given its attractive economics and
capital efficiency due in part to the expanded facility capacity brought on
stream in 2012. For 2013, drilling plans total approximately 100 wells under
the $900 million capital program.

  *In the first quarter of 2013, with up to five rigs running, 58 net wells
    were drilled.
  *The average cost of a Spearfish well was reduced by approximately $150,000
    to approximately $1.2 million due to improved drilling engineering
    procedures, top performing rigs and concentrated development.
  *Drilling times from spud to rig release have been reduced to five days on
    average compared to a first half 2012 average of eight days.
  *The focused nature of the development program also enabled procurement
    efficiencies with various suppliers.
  *Subsequent to the end of the first quarter, the natural gas liquids
    recovery plant was brought on stream, on budget and on schedule.

Carbonates

With approximately 500,000 net acres, the Carbonates light-oil play (Slave
Point and Swan Hills) represents a significant long-term asset. In 2012,
operated oil and gas infrastructure was significantly expanded to accommodate
further development over the next several years.

  *In the first quarter of 2013, eight single lateral horizontal wells were
    drilled in the Sawn (Slave Point) and Swan Hills areas.
  *Compared to the first half of 2012, average drilling and completion costs
    were reduced by approximately $1.9 million per well, to $4.8 million at
    Sawn, by utilizing experienced crews, top performing rigs and moving into
    the development phase of the project.
  *Also compared to the first half of 2012, Swan Hills average drilling and
    completion costs dropped approximately $900,000 per well, to $4.3 million,
    by reducing drilling times and modifying completion procedures.
  *In the second quarter, plans include the tie-in of the wells drilled in
    the first quarter and advancing waterflood pilots in the Sawn and Otter
    areas of the Slave Point, both of which are anticipated to be operational
    in the second half of 2013.

Cardium

With over 600,000 net acres across the trend, Penn West is the largest
landholder in the Cardium. The independent contingent resource study
identified a contingent resource of 533 million barrels ^(1) from only primary
development. The Cardium is a cornerstone asset, with numerous positive
attributes including significant remaining light-oil in place, the recent
success of primary horizontal redevelopment, the long established positive
impact of water flooding, and recent improvements in cost structure.

  *In the first quarter of 2013, activity was focused in the Alder Flats area
    with six wells drilled. Economic returns were enhanced by a reduction in
    drilling costs due to a reduction in drilling times and completion costs
    by adopting slick water completions.
  *Compared to the first half of 2012, average costs to drill and complete an
    Alder Flats well were reduced on average approximately $1.3 million per
    well to $2.0 million.
  *The horizontal water flood pilot in the West Pembina area continues to
    perform to expectation with reduced gas to oil ratios and increased oil
    rates. Two additional pilots in the Willesden Green area are anticipated
    to be on-stream later in 2013.

(1)   The 533 million barrels represents the "best" case scenario. Please
refer to our "Contingent Resource Disclosures" below.

Viking

The Viking play is known for consistent productivity, high netbacks, strong
economic rates of return and a predictable cost structure. The company has a
700,000 net acre position in the play area.

  *During the first quarter of 2013, 27 net wells were drilled.
  *Longer lateral wells will be used in future Viking development, as
    experience indicates that ultimate recoveries and rates of return are
    higher than for shorter laterals.
  *Development drilling in the Viking will continue over the balance of 2013,
    consistent with plans.
  *Selective integration of horizontal water flooding is anticipated to begin
    in 2014.

Exploration and Joint Ventures

Extensive land positions provide excellent resource optionality. Assessment at
a measured pace will continue through 2013.

  *The company has established a material position of approximately 150,000
    net acres in the liquids rich fairway of the emerging Duvernay shale play
    at Willesden Green. Industry activity and results continue to confirm the
    significant potential of the company's position.
  *In the first quarter of 2013, the Peace River Oil Partnership completed a
    primary development and stratigraphic drilling program and progressed on
    the three-well thermal pilot at Harmon Valley South which is expected to
    commence steam injection in the second half of 2013. The regulatory
    applications for the 10,000 barrel per day Seal Main Commercial Project
    were submitted in late 2012.

Second Quarter Production Outlook

Production in the second quarter was budgeted to be modestly lower than the
first quarter due to the impact of plant turnarounds and spring breakup.
Turnarounds are imperative to ensure reliability of our production.
Significant snow accumulations in eastern Alberta, western Saskatchewan and
western Manitoba have created the potential for large-scale flooding and
production interruptions to industry producers.

  *All planned first quarter development operations were completed prior to
    break-up.
  *To ensure capital efficiency gains are sustained, there are no drilling,
    completion or tie-in operations planned through break-up.
  *Planned operated and non-operated facility turnarounds in the second and
    third quarter are expected to reach a peak production impact of 10,000 boe
    per day in late June. These turnarounds were included in our annual
    production guidance.
  *In Manitoba, the risk to operations was minimized through the construction
    of improved drainage ditches, elevated leases, and group gathering
    pipelines in 2011 and 2012. Potential still exists for temporary
    production losses depending on the magnitude of flooding and other
    break-up conditions.
  *In the remaining operating areas with significant run-off exposure,
    similar preparations have been made to economically manage the reliability
    of production.

Dividend

  *On May 1, 2013, our Board of Directors declared a second quarter 2013
    dividend of $0.27 per share to be paid on July 15, 2013 to shareholders of
    record at the close of business on June 28, 2013.

FINANCIAL AND OPERATING RESULTS

Production and cost performance combined with improved light-oil price
realizations compared to WTI prices resulted in first quarter funds flow in
excess of internal expectations. Capital investment levels were on plan and
production and capital guidance remains unchanged for 2013. In April 2013, the
heavy oil differential (WCS to WTI) has narrowed, trading at approximately
US$14 per barrel to date for May. Approximately $1.6 billion of oil-weighted
asset dispositions were closed in 2012.

                                                   Three months ended March 31
                                                    2013         2012 % change
    Financial
    (millions, except per share amounts)
    Gross revenues (1)                        $      704   $      870     (19)
    Funds flow                                       267          337     (21)
                   Basic per share                  0.55         0.71     (23)
                   Diluted per share                0.55         0.71     (23)
    Net income (loss)                               (97)           59    (100)
                   Basic per share                (0.20)         0.12    (100)
                   Diluted per share              (0.20)         0.12    (100)
    Capital expenditures (2)                         427          660     (35)
    Debt at period-end                        $    2,962   $    3,397     (13)

    Dividends
    (millions)
    Dividends paid (3)                        $      129   $      127        2
    DRIP                                            (28)         (27)        4
    Dividends paid in cash                    $      101   $      100        1

    Operations
    Daily production
                   Light oil and NGL (bbls/d)     72,926       89,029     (18)
                   Heavy oil (bbls/d)             16,324       18,170     (10)
                   Natural gas (mmcf/d)              321          361     (11)
    Total production (boe/d)                     142,804      167,420     (15)
    Average sales price
                   Light oil and NGL (per
                   bbl)                       $    80.23   $    84.16      (5)
                   Heavy oil (per bbl)             50.78        72.68     (30)
                   Natural gas (per mcf)      $     3.18   $     2.29       39
    Netback per boe
                   Sales price                $    53.93   $    57.59      (6)
                   Risk management gain
                   (loss)                           0.60       (1.24)      100
                   Net sales price                 54.53        56.35      (3)
                   Royalties                      (9.30)      (10.59)     (12)
                   Operating expenses            (16.88)      (17.93)      (6)
                   Transportation                 (0.59)       (0.49)       20
                   Netback                    $    27.76   $    27.34        2

(1)Grossrevenuesincluderealizedgainsandlossesoncommoditycontracts.
(2) Capitalexpendituresincludeexplorationanddevelopmentcapitalless
jointventure,carriedcapital.
(3)Includesdividendspaidpriortothosereinvestedinsharesunderthedividendreinvestmentplan.

DRILLING STATISTICS

                                  Three months ended March 31
                                         2013            2012
                                Gross     Net   Gross     Net

    Oil                           144     118     188     151
    Natural gas                     1       1      20      17
                                  145     119     208     168
    Stratigraphic and service      33      16      50      27
    Total                         178     135     258     195
    Success rate (1)                     100%            100%

    (1) Success rate is calculated excluding stratigraphic and service wells.



CAPITAL EXPENDITURES

                                                Three months ended March 31
    (millions)                                     2013                2012

    Land acquisition and retention          $         1         $         8
    Drilling and completions                        321                 497
    Facilities and well equipping                   129                 199
    Geological and geophysical                        9                   8
    Corporate                                         3                   8
    Exploration and development capital (1)         463                 720
    Joint venture, carried capital                 (36)                (60)
    Property dispositions, net                      (9)               (322)
    Total capital expenditures              $       418         $       338

(1)ExplorationanddevelopmentcapitalincludecostsrelatedtoProperty,PlantandEquipmentandExplorationandEvaluationactivities.

In 2013, our capital program is focused on maximizing efficiencies across our
light-oil targets while obtaining a high internal rate of return. One of our
key areas of focus for 2013 is our Waskada play in southern Manitoba where we
drilled 58 net wells during the first quarter of 2013.

LAND

                                                                As at March 31
                              Producing                   Non-producing
                                              %                              %
                        2013     2012    change      2013      2012     change
    Gross acres
    (000s)             5,423    5,979       (9)     2,917     2,879          1
    Net acres (000s)   3,675    4,014       (8)     2,001     2,025        (1)
    Average working
    interest             68%      67%         1       69%       70%        (1)

COMMON SHARES DATA

    (millions of shares)          Three months ended March 31
                           2013      2012  % change
    Weighted average
                  Basic             481.7     472.6         2
                  Diluted           481.7     472.9         2
    Outstanding as at March 31      482.2     472.9         2

                        Letter  to  our Shareholders

The aim of the management and employees of Penn West is to close the gap
between the significant value inherent in the extensive light-oil resource
base of the company and the current market valuation. We believe the key to
achieving this objective is successful execution of our stated goals of
improving capital efficiencies and production reliability within a balanced
financial framework as laid out in our 2013 Capital Budget on January 9, 2013.

We are pleased to report with our first quarter results indications of
improved performance on both capital efficiency metrics and production
reliability. While this quarter provides a strong data point, our goal is to
establish a longer-term trend of this performance. Average production of
142,804 boe per day in the first quarter was on budget. Full year 2013 average
production guidance remains 135,000 - 145,000 boe per day.

Focusing capital on fewer light-oil areas and driving to reduce drilling and
completion costs across all core light-oil regions has resulted in positive
outcomes. We realized anticipated improvements in drilling performance and
completion costs in several core light-oil regions which led to significant
cost savings on a year-over-year basis. In the Cardium, costs were reduced on
average more than 35 percent; in the Slave Point in northern Alberta, costs
decreased by approximately 25 percent; similarly, in the Spearfish and at Swan
Hills we realized cost reductions of over 15 percent.

Across all regions, improvement in well and pipeline repair and maintenance
cycle times, and recovery from scheduled and unscheduled outages, all
contributed to stronger production performance. Improved field maintenance
response and active resources management prevented prolonged outages in many
of the areas where severe cold temperatures were experienced.

These cost structure improvements, increased reliability of base production
and forward capital allocations give us a high degree of confidence that Penn
West is on track to hit the capital efficiency target of $35,000 - $40,000 per
flowing barrel as outlined in the 2013 Capital Budget.

Financial management is a key corporate objective for Penn West. Contributing
to this objective, we continue to actively hedge oil and natural gas volumes
to reduce volatility of cash flow. For the remainder of 2013, we have over 80
percent of forecast oil volumes hedged between US$91.55 and US$104.42 per
barrel and over 55 percent of our forecast natural gas production hedged at
C$3.43 per mcf. Our target debt to EBITDA ratio is in the 1.5 times to 2.0
times range by year-end.

I would like to personally thank Mr. John Brussa for his significant
contributions over the past 18 years with Penn West. Since John's appointment
to the Board in 1995 and subsequent appointment as Chairman of the Board in
2005, his counsel and advice has served Penn West and its shareholders well.

At the same time, I would like to welcome Mr. Jack Schanck as the new Chairman
of the Board. Both the management team and I look forward to working with
Jack.

Penn West continues to possess one of the largest portfolios of light-oil
resources in North America. With our strong focus on improved execution in
converting those resources to production and reserves efficiently, we believe
the inherent value of the company will be realized in the market.

We have now firmly established the focus of the organization and with our
first quarter results, established new performance standards; our aim is to
continue this pattern.

(Signed)

Murray R. Nunns President and Chief Executive Officer 

Calgary, AlbertaMay 1, 2013

Outlook

This outlook section is included to provide shareholders with information
about our expectations as at May 1, 2013 for production and capital
expenditures in 2013 and readers are cautioned that the information may not be
appropriate for any other purpose. This information constitutes
forward-looking information. Readers should note the assumptions, risks and
discussion under "Forward-Looking Statements" and are cautioned that numerous
factors could potentially impact our capital expenditure levels and production
performance for 2013.

Our 2013 forecast exploration and development capital is $900 million with an
option to layer in up to $300 million of incremental capital later in 2013,
subject to approval of our Board of Directors based on external market factors
and internal performance. After the divestment activity in 2012, we continue
to forecast 2013 average production of between 135,000 and 145,000 boe per
day.

There have been no changes to our guidance from our initial forecast, released
on January 9, 2013 with our "2013 Budget" release and filed on SEDAR at
http://www.sedar.com .

Advance Notice

Penn West announced that its board of directors has approved the adoption of
an advance notice by-law (the "By-law"). Among other things, the By-law fixes
a deadline by which shareholders must submit a notice of director nominations
to Penn West prior to any annual or special meeting of shareholders where
directors are to be elected and sets forth the information that a shareholder
must include in the notice for it to be valid.

Specifically, the By-law requires advance notice to Penn West in circumstances
where nominations of persons for election as a director of Penn West are made
by shareholders other than pursuant to: (i) a requisition of a meeting made
pursuant to the provisions of the Business Corporations Act (Alberta) (the
"Act"); or (ii) a shareholder proposal made pursuant to the provisions of the
Act.

In the case of an annual meeting of shareholders, notice to Penn West must be
made not less than 30 days and not more than 65 days prior to the date of the
annual meeting. In the event that the annual meeting is to be held on a date
that is less than 50 days after the date on which the first public
announcement of the date of the annual meeting was made, notice may be made
not later than the close of business on the 10th day following such public
announcement.

In the case of a special meeting of shareholders (which is not also an annual
meeting), notice to Penn West must be made not later than the close of
business on the 15th day following the day on which the first public
announcement of the date of the special meeting was made.

The By-law is effective immediately. At the next meeting of shareholders of
Penn West, to be held on June 5, 2013, shareholders will be asked to confirm
and ratify the By-law.

Non-GAAP Measures Advisory

This news release includes non-GAAP measures not defined under International
Financial Reporting Standards ("IFRS") including funds flow, funds flow per
share-basic, funds flow per share-diluted and netback. Non-GAAP measures do
not have any standardized meaning prescribed by GAAP and therefore may not be
comparable to similar measures presented by other issuers. Funds flow is cash
flow from operating activities before changes in non-cash working capital and
decommissioning expenditures. Funds flow is used to assess our ability to fund
dividends and planned capital programs. See "Calculation of Funds Flow" below.
Netback is a per-unit-of-production measure of operating margin used in
capital allocation decisions, to economically rank projects and is the per
unit of production amount of revenue less royalties, operating costs,
transportation and realized risk management gains and losses.

Calculation of Funds Flow

    (millions, except per share amounts)     Three months ended March 31
                                                2013                2012

    Cash flow from operating activities  $       256         $       234
    Change in non-cash working capital           (7)                  79
    Decommissioning expenditures                  18                  24
    Funds flow                           $       267         $       337

    Basic per share                      $      0.55         $      0.71
    Diluted per share                    $      0.55         $      0.71

Oil and Gas Information Advisory

Barrels of oil equivalent ("boe") may be misleading, particularly if used in
isolation. A boe conversion ratio of six thousand cubic feet of natural gas to
one barrel of crude oil is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead. Given that the value ratio based on the current
price of crude oil as compared to natural gas is significantly different from
the energy equivalency conversion ratio of 6:1, utilizing a conversion on a
6:1 basis is misleading as an indication of value.

Contingent Resource Disclosures

In this press release, Penn West discusses the results of the independent
resource evaluation study for its Cardium properties. This relates to the AJM
Deloitte ("AJM") contingent resource evaluation dated October 16, 2012 and
effective July 31, 2012. This release contains certain information reproduced
from the AJM Report, but does not contain the report in its entirety.

AJM has assigned contingent resources of 533 million barrels of oil in the
best estimate case for Penn West's Cardium properties.

The contingent resource assessment prepared by AJM was prepared in accordance
with the definitions, standards and procedures contained in the Canadian Oil
and Gas Evaluation Handbook (the "COGE Handbook") and National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
Contingent resource is defined in the COGE Handbook as those quantities of
petroleum estimated to be potentially recoverable from known accumulations
using established technology or technology under development, but which do not
currently qualify as reserves or commercially recoverable due to one or more
contingencies. Contingencies may include factors such as economic, legal,
environmental, political and regulatory matters or a lack of markets. There is
no certainty that it will be commercially viable to produce any portion of the
contingent resources.

The economic viability of Penn West's Cardium contingent resources is
undetermined, as economic studies have not yet been completed.

Please refer to our press release dated October 17, 2012 "Penn West Updates
Asset Dispositions and Results of the Contingent Resources Studies" for
further information.

Forward-Looking Statements

In the interest of providing our securityholders and potential investors with
information regarding Penn West, including management's assessment of our
future plans and operations, certain statements contained in this document
constitute forward-looking statements or information (collectively
"forward-looking statements") within the meaning of the "safe harbour"
provisions of applicable securities legislation. Forward-looking statements
are typically identified by words such as "anticipate", "continue",
"estimate", "expect", "forecast", "may", "will", "project", "could", "plan",
"intend", "should", "believe", "outlook", "objective", "aim", "potential",
"target" and similar words suggesting future events or future performance. In
addition, statements relating to "reserves" or "resources" are deemed to be
forward-looking statements as they involve the implied assessment, based on
certain estimates and assumptions, that the reserves and resources described
exist in the quantities predicted or estimated and can be profitably produced
in the future.

In particular, this document contains forward-looking statements pertaining
to, without limitation, the following: under the heading "Highlights", among
other things: the 2013 annual average production guidance of 135,000 to
145,000 boe per day and the expected percentage of our forecast 2013 oil
production that is hedged; under the heading "Operations Update", among other
things: the focus of our 2013 capital program on plays that have been advanced
to the full development stage, our projections that our 2013 capital program
of $900 million will include 160 to 180 net operated development wells
concentrated on light oil, our expectation that the Spearfish area will be a
key focus area in 2013, plans of drilling 100 wells in the Spearfish area, our
belief that several years of drilling inventory remain in the Spearfish area,
our plans that second quarter activity in the Carbonates light oil play will
include the tie-in of the wells drilled in the first quarter and advancing
waterflood pilots in the Sawn and Otter areas of the Slave Point, both of
which are anticipated to be operational in the second half of 2013, our
expectation that two additional waterflood pilots in the Willesden green area
are to be on-stream later in 2013, our intent that longer reach laterals will
be used in future Viking development, our expectation that development
drilling in the Viking will continue over the balance of 2013, consistent with
plans and that selective integration of horizontal water flooding is
anticipated to begin in 2014, our expectation that assessment at a measured
pace of our extensive land position will continue through 2013 and our
expectation that the three-well thermal pilot at Harmon Valley South will
commence steam injection in the second half of 2013; under the heading "Second
Quarter Production Outlook", among other things: our expectation that
production in the second quarter will be modestly lower than first quarter
volumes due to the impact of plant turnarounds and spring breakup, the
potential for large scale flooding and production interruptions to industry
producers, our plan that no drilling, completion or tie-in operations will
occur through break-up, our expectation that operated and non-operated
facility turnarounds will reach a peak production impact of 10,000 boe per day
later in the second quarter, our belief that potential still exists for
temporary production losses depending on the magnitude of flooding and other
break-up conditions, our expectation that the planned turnarounds and normal
spring break up impacts may impact our second quarter production by 4,000 to
5,000 boe per day; under the heading "Capital Expenditures" that the focus of
our 2013 capital program will be on maximizing efficiencies across our
light-oil targets while obtaining a high internal rate of return and one of
our key areas of focus for 2013 is our Waskada play in southern Manitoba; in
the "Letter to our Shareholders", among other things: that the aim of the
management and employees of Penn West is to close the gap between the
significant value inherent in the extensive light-oil resource base of the
company and the current market valuation and our belief the key to achieving
this objective is successful execution of our stated goals of improving
capital efficiencies and production reliability within a balanced financial
framework, our goal of establishing a longer trend of performance similar to
the first quarter, our annual average production guidance of 135,000 to
145,000 boe per day, our expectation of achieving the capital efficiency
target of $35,000 - $40,000 per flowing barrel as outlined in the 2013 Capital
Budget, the percentage of our projected 2013 oil and natural gas production
which is hedged, our target debt to EBITDA ratio of 1.5 times to 2.0 times
range by year-end, our belief that the inherent value of the company will be
realized in the market and our aim to continue the pattern established with
our first quarter results and new performance standards; under the heading
"Outlook", among other things: our 2013 forecast exploration and development
capital of $900 million with an option to layer in up to $300 million of
incremental capital later in 2013, subject to approval of our Board of
Directors based on external market factors and internal performance, and our
forecast 2013 average production of between 135,000 and 145,000 boe per day.

With respect to forward-looking statements contained in this document, we have
made assumptions regarding, among other things: future crude oil, natural gas
liquids and natural gas prices and differentials between light, medium and
heavy oil prices and Canadian, WTI and world oil prices; future capital
expenditure levels; future crude oil, natural gas liquids and natural gas
production levels; drilling results; future exchange rates and interest rates;
the amount of future cash dividends that we intend to pay and the level of
participation in our dividend reinvestment plan; our ability to obtain
equipment in a timely manner to carry out development activities and the costs
thereof; our ability to market our oil and natural gas successfully to current
and new customers; the impact of increasing competition; our ability to obtain
financing on acceptable terms, including our ability to renew or replace our
credit facility and our ability to finance the repayment of our senior
unsecured notes on maturity; and our ability to add production and reserves
through our development and exploitation activities. In addition, many of the
forward-looking statements contained in this document are located proximate to
assumptions that are specific to those forward-looking statements, and such
assumptions should be taken into account when reading such forward-looking
statements.

Although we believe that the expectations reflected in the forward-looking
statements contained in this document, and the assumptions on which such
forward-looking statements are made, are reasonable, there can be no assurance
that such expectations will prove to be correct. Readers are cautioned not to
place undue reliance on forward-looking statements included in this document,
as there can be no assurance that the plans, intentions or expectations upon
which the forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and unknown
risks and uncertainties that contribute to the possibility that the
predictions, forecasts, projections and other forward-looking statements will
not occur, which may cause our actual performance and financial results in
future periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such forward-looking
statements. These risks and uncertainties include, among other things: the
impact of weather conditions on seasonal demand and ability to execute capital
programs; risks inherent in oil and natural gas operations; uncertainties
associated with estimating reserves and resources; competition for, among
other things, capital, acquisitions of reserves, resources, undeveloped lands
and skilled personnel; incorrect assessments of the value of acquisitions;
geological, technical, drilling and processing problems; general economic and
political conditions in Canada, the U.S. and globally; industry conditions,
including fluctuations in the price of oil and natural gas, price
differentials for crude oil produced in Canada as compared to other markets,
and transportation restrictions; royalties payable in respect of our oil and
natural gas production and changes thereto; changes in government regulation
of the oil and natural gas industry, including environmental regulation;
fluctuations in foreign exchange or interest rates; unanticipated operating
events or environmental events that can reduce production or cause production
to be shut-in or delayed, including wild fires and flooding; failure to obtain
industry partner and other third-party consents and approvals when required;
stock market volatility and market valuations; OPEC's ability to control
production and balance global supply and demand of crude oil at desired price
levels; political uncertainty, including the risks of hostilities, in the
petroleum producing regions of the world; the need to obtain required
approvals from regulatory authorities from time to time; failure to realize
the anticipated benefits of dispositions, acquisitions, joint ventures and
partnerships; changes in tax and other laws that affect us and our
securityholders; changes in government royalty frameworks; uncertainty of
obtaining required approvals for acquisitions, dispositions and mergers; the
potential failure of counterparties to honour their contractual obligations;
and the other factors described in our public filings (including our Annual
Information Form) available in Canada at http://www.sedar.com and in the
United States at http://www.sec.gov . Readers are cautioned that this list of
risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as of the
date of this document. Except as expressly required by applicable securities
laws, we do not undertake any obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise. The forward-looking statements contained in this document
are expressly qualified by this cautionary statement.

                             Penn West Petroleum Ltd.
                           Consolidated Balance Sheets

                                                                      December
    (CAD millions, unaudited)                       March 31, 2013    31, 2012

    Assets
    Current
                      Accounts receivable         $            435  $      364
                      Other                                     66          79
                      Deferred funding assets                  193         187
                      Risk management                           21          76
                                                               715         706
    Non-current
                      Deferred funding assets                  216         238
                      Exploration and evaluation
                      assets                                   638         609
                      Property, plant and
                      equipment                             11,047      10,892
                      Goodwill                               2,020       2,020
                      Risk management                           31          26
                                                            13,952      13,785
    Total assets                                  $         14,667  $   14,491

    Liabilities and Shareholders' Equity
    Current
                      Accounts payable and
                      accrued liabilities         $            868  $      764
                      Dividends payable                        130         129
                      Current portion of
                      long-term debt                             5           5
                      Risk management                           21           9
                                                             1,024         907
    Non-current
                      Long-term debt                         2,957       2,685
                      Decommissioning liability                637         635
                      Risk management                           41          35
                      Deferred tax liability                 1,324       1,350
                      Other non-current
                      liabilities                                4           5
                                                             5,987       5,617
    Shareholders' equity
                      Shareholders' capital                  9,021       8,985
                      Other reserves                            94          97
                      Deficit                                (435)       (208)
                                                             8,680       8,874
    Total liabilities and shareholders' equity    $         14,667  $   14,491

                            Penn West Petroleum Ltd.
                    Consolidated Statements of Income (Loss)
                                                                Three months
                                                                       ended
                                                                    March 31
    (CAD millions, except per share amounts,
    unaudited)                                                 2013     2012

                  Oil and natural gas sales              $      696  $   889
                  Royalties                                   (119)    (161)
                                                                577      728

                  Risk management gain (loss)
                                  Realized                        8     (19)
                                  Unrealized                   (73)     (63)
                                                                512      646

    Expenses
                  Operating                                     217      273
                  Transportation                                  8        8
                  General and administrative                     43       39
                  Share-based compensation                        8       17
                  Depletion and depreciation                    279      312
                  Gain on dispositions                            -     (72)
                  Exploration and evaluation                      -        1
                  Unrealized risk management gain               (5)     (42)
                  Unrealized foreign exchange loss
                  (gain)                                         29     (31)
                  Financing                                      45       47
                  Accretion                                      11       11
                                                                635      563
    Income (loss) before taxes                                (123)       83

                  Deferred tax expense (recovery)              (26)       24

    Net and comprehensive income (loss)                  $     (97)  $    59

    Net income (loss) per share
                  Basic                                  $   (0.20)  $  0.12
                  Diluted                                $   (0.20)  $  0.12
    Weighted average shares outstanding (millions)
                  Basic                                       481.7    472.6
                  Diluted                                     481.7    472.9

                             Penn West Petroleum Ltd.
                      Consolidated Statements of Cash Flows
                                                            Three months ended
                                                                      March 31
    (CAD millions, unaudited)                                  2013       2012

    Operating activities
             Net income (loss)                              $  (97)    $    59
             Depletion and depreciation                         279        312
             Gain on dispositions                                 -       (72)
             Exploration and evaluation                           -          1
             Accretion                                           11         11
             Deferred tax expense (recovery)                   (26)         24
             Share-based compensation                             3         12
             Unrealized risk management loss                     68         21
             Unrealized foreign exchange loss
             (gain)                                              29       (31)
             Decommissioning expenditures                      (18)       (24)
             Change in non-cash working capital                   7       (79)
                                                                256        234
    Investing activities
             Capital expenditures                             (427)      (660)
             Property dispositions (acquisitions),
             net                                                  9        322
             Change in non-cash working capital                  18        (8)
                                                              (400)      (346)
    Financing activities
             Increase in bank loan                              243        209
             Issue of equity                                      2          3
             Dividends paid                                   (101)      (100)
                                                                144        112

    Change in cash                                                -          -
    Cash, beginning of period                                     -          -
    Cash, end of period                                     $     -    $     -

                             Penn West Petroleum Ltd.
                  Statements of Changes in Shareholders' Equity
    (CAD millions,
    unaudited)
                                Shareholders'       Other
                                      Capital    Reserves     Deficit    Total

    Balance at January 1,
    2013                      $         8,985  $       97  $    (208)  $ 8,874
    Net and comprehensive
    loss                                    -           -        (97)     (97)
    Share-based
    compensation                            -           3           -        3
    Issued on exercise of
    options and share
    rights                                  8         (6)           -        2
    Issued to dividend
    reinvestment plan                      28           -           -       28
    Dividends declared                      -           -       (130)    (130)
    Balance at March 31,
    2013                      $         9,021  $       94  $    (435)  $ 8,680
    (CAD millions,
    unaudited)
                                Shareholders'       Other    Retained
                                      Capital    Reserves    Earnings    Total

    Balance at January 1,
    2012                      $         8,840  $       95  $      132  $ 9,067
    Net and comprehensive
    income                                  -           -          59       59
    Share-based
    compensation                            -           9           -        9
    Issued on exercise of
    options and share
    rights                                 17        (14)           -        3
    Issued to dividend
    reinvestment plan                      27           -           -       27
    Dividends declared                      -           -       (128)    (128)
    Balance at March 31,
    2012                      $         8,884  $       90  $       63  $ 9,037

                            Inves to r Information

Penn West shares are listed on the Toronto Stock Exchange under the symbol PWT
and on the New York Stock Exchange under the symbol PWE.

A conference call will be held to discuss Penn West's results at 9:00am
Mountain Time (11:00am Eastern Time) on May 2, 2013.

To listen to the conference call, please call 647-427-7450 or 1-888-231-8191
(North America toll-free). This call will be broadcast live on the Internet
and may be accessed directly on the Penn West website at www.pennwest.com or
at the following URL:

http://event.on24.com/r.htm?e=612727&s=1&k=94B32CE34842C98E4B0288DE6C685561

A digital recording will be available for replay two hours after the call's
completion, and will remain available until May 16, 201321:59 Mountain Time
(23:59 Eastern Time). To listen to the replay, please dial 416-849-0833 or
1-855-859-2056 (North America toll-free) and enter Conference ID 53400385,
followed by the pound (#) key.

SOURCE: Penn West Exploration

For further information:

PENN WEST EXPLORATION Penn West Plaza Suite 200, 207 - 9 ^th Avenue SWCalgary,
Alberta T2P 1K3 Phone: +1-403-777-2500 Fax: +1-403-777-2699Toll Free:
1-866-693-2707 Website: http://www.pennwest.com

Investor Relations:Toll Free: 1-888-770-2633 E-mail:
investor_relations@pennwest.com

Murray Nunns, President & Chief Executive Officer Phone: +1-403-218-8939
E-mail: murray.nunns@pennwest.com

Clayton Paradis, Manager, Investor Relations Phone: +1-403-539-6343 E-mail:
clayton.paradis@pennwest.com
 
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