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, May 2, 2013

CALGARY, 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) Gross revenues include realized gains and losses on commodity contracts.
(2) Capital expenditures include exploration and development capital less
    joint venture, carried capital.
(3) Includes dividends paid prior to those reinvested in shares under the
    dividend reinvestment plan.

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) Exploration and development capital include costs related to Property,
    Plant and Equipment and Exploration and Evaluation activities.

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

                           Three months ended March 31
(millions of shares)           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, Alberta
May 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 
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

                                      Three months ended March 31
(millions, except per share amounts)        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 www.sedar.com  and in  the  United 
States at 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

(CAD millions, unaudited)                    March 31, 2013   December
                                                                      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           $                    868 $       764
   liabilities
  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                                       (208)
                                                             (435)
                                                        8,680      8,874
Total liabilities and shareholders'       $                 14,667 $    14,491
equity

                          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
                                                                            
                               Shareholders'     Other             
(CAD millions, unaudited)              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                      8       (6)           -      2
options and share rights
Issued to dividend                        28         -           -     28
reinvestment plan
Dividends declared                         -         -       (130)  (130)
Balance at March 31, 2013     $         9,021 $       94 $      (435) $ 8,680
                                                                            
                               Shareholders'     Other    Retained 
(CAD millions, unaudited)              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                     17      (14)           -      3
options and share rights
Issued to dividend                        27         -           -     27
reinvestment plan
Dividends declared                         -         -       (128)  (128)
Balance at March 31, 2012     $         8,884 $       90 $         63 $ 9,037

                             Investor 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, 2013 21:59 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

Contact:

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

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

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

Clayton Paradis, Manager, Investor Relations
Phone: 403-539-6343
E-mail:clayton.paradis@pennwest.com
 
Press spacebar to pause and continue. Press esc to stop.