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Penn West Exploration Announces its Financial Results for the Second Quarter Ended June 30, 2013

 Penn West Exploration Announces its Financial Results for the Second Quarter
                             Ended June 30, 2013

  PR Newswire

  CALGARY, Alberta, August 8, 2013

CALGARY, Alberta, August 8, 2013 /PRNewswire/ --

PENN WEST PETROLEUM LTD. (TSX - PWT; NYSE - PWE) ("PENN WEST" or the
"COMPANY") is pleased to announce its results for the second quarter ended
June 30, 2013. All figures are in Canadian dollars unless otherwise stated.


                               Three months ended June
                                                    30     Six months ended June 30
                                                     %                            %
                                2013       2012 change       2013       2012 change
    Financial
    (millions, except
    per share amounts)
    Gross revenues (1)     $     745  $     774    (4)  $   1,449  $   1,644   (12)
    Funds flow (2)               278        272      2        545        609   (11)
           Basic per
           share (2)            0.57       0.57      -       1.13       1.29   (12)
           Diluted per
           share (2)            0.57       0.57      -       1.13       1.29   (12)
    Net income (loss)           (40)        235  (100)      (137)        294  (100)
           Basic per
           share              (0.08)       0.50  (100)     (0.28)       0.62  (100)
           Diluted per
           share              (0.08)       0.50  (100)     (0.28)       0.62  (100)
    Exploration and
    development capital
    (3)                          112        329   (66)        539        989   (46)
    Debt at period-end     $   3,125  $   3,691   (15)  $   3,125  $   3,691   (15)

    Dividends
    (millions)
    Dividends paid (4)     $     130  $     128      2  $     259  $     255      2
    DRIP                        (26)       (29)   (10)       (54)       (56)    (4)
    Dividends paid in
    cash                   $     104  $      99      5  $     205  $     199      3

    Operations
    Daily production
    (average)
           Light oil and
           NGL (bbls/d)       72,493     87,536   (17)     72,708     88,282   (18)
           Heavy oil
           (bbls/d)           15,653     17,222    (9)     15,987     17,696   (10)
           Natural gas
           (mmcf/d)              312        351   (11)        316        356   (11)
    Total production
    (boe/d) (5)              140,083    163,181   (14)    141,436    165,301   (14)
    Average sales price
           Light oil and
           NGL (per bbl)   $   82.65  $   75.20     10  $   81.44  $   79.72      2
           Heavy oil (per
           bbl)                67.10      61.36      9      58.81      67.17   (12)
           Natural gas
           (per mcf)       $    3.70  $    1.98     87  $    3.44  $    2.14     61
    Netback per boe
           Sales price     $   58.49  $   51.06     15  $   56.20  $   54.37      3
           Risk
           management
           gain (loss)        (0.07)       0.29  (100)       0.26     (0.49)    100
           Net sales
           price               58.42      51.35     14      56.46      53.88      5
           Royalties         (10.32)     (9.84)      5     (9.81)    (10.22)    (4)
           Operating
           expenses          (16.83)    (17.16)    (2)    (16.86)    (17.55)    (4)
           Transportation     (0.59)     (0.51)     16     (0.59)     (0.50)     18
           Netback (2)     $   30.68  $   23.84     29  $   29.20  $   25.61     14

ess otherwise stated.


            Gross revenues include realized gains and losses on commodity
    (1)                               contracts.
        The terms "funds flow", "funds flow per share-basic", "funds flow per
         share-diluted" and "netback" are non-GAAP measures. Please refer to
           the "Calculation of Funds Flow" and "Non-GAAP Measures Advisory"
    (2)                            sections below.
    (3)                 Includes capital carried by partners.
         Includes dividends paid prior to amounts reinvested in shares under
    (4)                    the dividend reinvestment plan.
         Please refer to the "Oil and Gas Information Advisory" section below
    (5)               for information regarding the term "boe".


PRESIDENT'S MESSAGE

Dave Roberts, President and Chief Executive Officer, commented, "In the second
quarter, Penn West continued to deliver operating results in line with
expectations as we focused on reliable and repeatable performance from our
asset base. Total production for the quarter averaged 140,083 boe per day with
63 percent being liquids. Funds flow of $278 million for the second quarter of
2013 was higher than the prior year due to narrowing WTI to Edmonton light
sweet oil pricing differentials, which more than offset lower production as a
result of asset dispositions closed in late 2012. Based on our performance to
date, we can reiterate our expected production guidance for the year to
deliver an annualized 135,000 to 145,000 boe per day in 2013. Capital
expenditures for the year are expected at $900 million."

"In addition to the strategic review of the Company being progressed by the
Special Committee of the Board, we are actively streamlining and focusing our
management and operating structure. To date in 2013, the Company has reduced
its workforce by over 10 percent of full time equivalents including a
realignment of responsibilities and significant reduction of personnel,
including at the executive and management level. Further steps to improve our
focus, accountability and cost model to allow us to achieve our goal to
deliver best in class operating performance and shareholder returns are
expected in the present quarter."

SECOND QUARTER KEY POINTS

  *Total average production of 140,083 boe per day (63 percent liquids).
  *Funds flow up as commodity price gains and cost reductions offset asset
    sales.
  *Staff reduction target of 10 percent on the year, achieved prior to the
    end of the quarter.
  *2013 annual average production target re-confirmed between 135,000 and
    145,000 boe per day.
  *2013 capital re-confirmed at $900 million.

OPERATIONAL HIGHLIGHTS

Second quarter 2013 production was ahead of plan as we reduced our cycle times
from the start of drilling wells to on production. This continued to result in
new production coming on-stream ahead of plans and downward trending costs.
For the first six months of 2013, average production was 141,436 boe per day,
in-line with our expectations and our annual average production guidance.
Production for the second quarter of 2013 and year-to-date in 2013 was lower
than the corresponding periods of 2012 due to the asset dispositions completed
in the fourth quarter of 2012.

During the second quarter of 2013, exploration and development capital
expenditures totalled $112 million (2012 - $329 million). Second quarter
development activities were focused on completion and tie-in work from our
winter drilling program, notably in the Viking and Spearfish plays. For the
first six months of 2013, exploration and development capital expenditures
totalled $539 million (2012 - $989 million).

We remain on target to meet our capital guidance for 2013. The incremental
capital wedge of $300 million previously contemplated by the Company will not
be invested in 2013.

FINANCIAL HIGHLIGHTS

Funds flow for the second quarter of 2013 was $278 million ($0.57 per share -
basic) and ahead of budget due to stronger crude oil prices and narrower WTI
to Edmonton light-oil differentials. This compared to $267 million ($0.55 per
share - basic) in the first quarter of 2013 with both quarters including the
effect of the late 2012 asset dispositions.

In the second quarter of 2013, we recorded a loss of $40 million ($0.08 per
share - basic) primarily due to unrealized foreign exchange losses on our U.S.
denominated debt, as a result of the weakening of the Canadian dollar relative
to the US dollar.

For the second half of 2013, we currently have 55,000 barrels per day of crude
oil production hedged between US$91.55 and US$104.42 per barrel and
approximately 175,000 mcf per day of natural gas production hedged at $3.43
per mcf.

For the first six months of 2014, we have 26,000 barrels per day of crude oil
production hedged, with 20,000 barrels per day swapped at an average price of
US$93.74 per barrel and 6,000 barrels per day collared between US$92.00 and
US$98.67 per barrel. Additionally, we have 2014 natural gas production hedged
with 90,000 mcf per day swapped at $3.90 per mcf and 50,000 mcf per day
collared between $3.41 per mcf and $4.17 per mcf.

PLAY UPDATE

Cardium

In the first half of 2013, we completed a selective drilling program in the
Cardium focusing on program capital efficiencies and advancement of slick
water fracture stimulation techniques. In the Alder Flats area, drilling and
completion costs in the first half of 2013 improved by more than 30 percent
from 2012. Based upon these results and extensive study by our teams, we are
confident that comparable savings can be repeated in the Willesden Green and
Lodgepole areas of the Cardium. The Cardium represents an opportunity to
create repeatable and sustainable value creative investment programs and we
will be reallocating $40 million of capital to the play in the second half of
2013. As a result of this shift, we anticipate drilling 14 additional wells.
We expect that a continuous, even flow drilling approach will allow us to
further improve our performance in the future.

Viking

The results of our drilling program in early 2013 remain encouraging and we
have achieved significant improvements in well performance and cost. Drilling
cost and cycle times of our program are competitive with other industry
players. Our completion costs in the Viking trend higher than most of our
competitors due to our use of nitrogen in our completion technique, however,
first year well productivity is more than 25 percent higher than those of our
competitors, more than justifying the additional cost. We believe further cost
improvements are possible with pad drilling, continued refinement of our
completion techniques and continuous improvement in our drilling performance.
Based upon our results to date in the first half of 2013, we will reallocate
$47 million to this opportunity in the second half with the expectation of
drilling and completing 32 new wells. In addition, we are evaluating down
spacing in the core of the play for 2014 drilling and are pursuing the
implementation of waterflood schemes to increase the recoveries and value from
this play.

Spearfish

In the first half of 2013, we allocated significant capital to the Spearfish
due to its strong capital efficiencies and the production infrastructure in
place. During the second quarter of 2013, activity was concentrated on tie-ins
and completions of the winter drilling program and our liquids extraction
plant became operational, providing incremental natural gas liquids
production.

While there are a significant number of further primary locations to pursue in
the play, we are shifting our activities to the assessment of waterflood
schemes and other pressure maintenance opportunities to increase recoveries
from the current estimate of approximately two percent. Capital previously
planned for the Spearfish is being directed to the Cardium and Viking as we
continue to study the results of our recent aggressive three-year drilling
program.

Carbonates

Our results in the first half of 2013 have met or exceeded our expectations
for cost and cycle time reductions as well as production performance. Well
costs have declined 30 percent with the 2013 program and, for the remainder of
2013; our focus is on the initiation of a waterflood pilot in the Otter area
and preparation of integrated development programs across the Slave Point play
for 2014 and beyond.

Secondary Recovery

We remain confident in the potential to increase recoveries and create
incremental value from the application of waterflood and other enhanced oil
recovery schemes. Significant reservoir simulation work across all of our
major plays has been completed with encouraging results. Over the balance of
2013 and into 2014, we will be implementing or expanding waterfloods in the
Cardium and Slave Point, and will be evaluating waterflood application to the
Viking and Spearfish. As we focus on enhancing value and capital returns by
increasing resource recoveries, we expect a higher portion of our future
capital programs will include upfront waterflood investments.

DIVIDENDS


                                  DRILLING STATISTICS

                          Three months ended June 30               Six months ended June 30
                           2013                 2012              2013                 2012
                Gross       Net      Gross       Net   Gross       Net      Gross       Net
    Oil            12         1         19        12     156       119        207       163
    Natural gas     -         -          -         -       1         1         20        17
                   12         1         19        12     157       120        227       180
    Stratigraphic
    and service     -         -          2         1      33        16         52        28
    Total          12         1         21        13     190       136        279       208
    Success rate
    (1)                    100%                 100%              100%                 100%

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



       CAPITAL
    EXPENDITURES

    (millions)            Three months ended June 30       Six months ended June 30
                           2013                 2012         2013              2012
    Land
    acquisition
    and retention      $      2             $     27      $     3           $    35
    Drilling and
    completions              70                  179          391               676
    Facilities
    and well
    equipping                65                  138          194               337
    Geological
    and
    geophysical               -                    2            9                10
    Corporate                 2                    3            5                11
    Capital
    carried by
    partners               (27)                 (20)         (63)              (80)
    Exploration
    and
    development
    capital (1)             112                  329          539               989
    Property
    dispositions,
    net                    (29)                 (19)         (38)             (341)
    Total
    expenditures       $     83             $    310      $   501           $   648

ome tax purposes.

            Exploration and development capital includes costs related to
             Property, Plant and Equipment and Exploration and Evaluation
    (1)                              activities.


          LAND
                                                                 As at June 30
                               Producing                  Non-producing
                                               %                             %
                         2013     2012    change     2013      2012     change
    Gross acres
    (000s)              5,244    5,974      (12)    3,011     2,859          5
    Net acres (000s)    3,558    4,028      (12)    2,061     2,130        (3)
    Average working
    interest              68%      67%         1      69%       75%        (6)


from our winter drilling program in early 2013.


     COMMON SHARE
         DATA
                            Three months ended June 30     Six months ended June 30
    (millions of                                     %                            %
    shares)           2013          2012        change    2013          2012 change
    Weighted
    average
           Basic     484.6         474.3             2   483.2         473.5      2
           Diluted   484.6         474.4             2   483.2         473.6      2
    Outstanding
    as at June 30                                        485.0         474.6      2


Outlook

This outlook section is included to provide shareholders with information
about our expectations as at August 7, 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 exploration and development capital budget remains unchanged at $900
million. It has been determined not to proceed with the previously announced
option to increase our 2013 capital budget by $300 million. Our forecast 2013
average production remains unchanged 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 .

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            Three months ended       Six months ended
    share amounts)                              June 30                June 30
                                       2013        2012         2013      2012
    Cash flow from operating
    activities                      $   199     $   280       $  455    $  514
    Change in non-cash working
    capital                              72        (23)           65        56
    Decommissioning
    expenditures                          7          15           25        39
    Funds flow                      $   278     $   272       $  545    $  609

    Basic per share                 $  0.57     $  0.57       $ 1.13    $ 1.29
    Diluted per share               $  0.57     $  0.57       $ 1.13    $ 1.29


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.

Forward-Looking Statements

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 particular, this document contains
forward-looking statements pertaining to, without limitation, the following:
under "President's Message", "Second Quarter Key Points" and "Outlook", our
2013 exploration and development capital budget of $900 million, and our
forecast 2013 average production of between 135,000 and 145,000 boe per day;
under "President's Message", our intention to progress a strategic review of
the Company, our intention to actively streamline and focus our management and
operating structure, and our belief that further steps to improve our focus,
accountability and cost model to allow us to achieve our goal to deliver best
in class operating performance and shareholder returns are expected in the
present quarter; under "Play Update - Cardium", our belief that savings
comparable to those achieved at Alder Flats can be repeated in the Willesden
Green and Lodgepole areas, our belief that the Cardium represents an
opportunity to create repeatable and sustainable value creative investment
programs, our intention to reallocate $40 million of capital to the play in
the second half of 2013 and drill 14 additional wells, and our expectation
that a continuous, even flow drilling approach will allow us to further
improve our performance in the future; under "Play Update - Viking", our
belief that further cost improvements are possible with pad drilling,
continued refinement of our completion techniques and continuous improvement
in our drilling performance, our intention to reallocate $47 million to this
play in the second half with the expectation of drilling and completing 32 new
wells, and our intention to evaluate down spacing in the core of the play for
2014 drilling and pursue the implementation of waterflood schemes to increase
the recoveries and value from this play; under "Play Update - Spearfish", our
belief that there are a significant number of further primary locations to
pursue in the play, our intention to shift our activities to the assessment of
waterflood schemes and other pressure maintenance opportunities to increase
recoveries from the current estimate of approximately two percent, and our
plan that capital previously planned for the area will be directed to the
Cardium and Viking as we continue to study the results of our recent
aggressive three-year drilling program in the Spearfish area; under "Play
Update - Carbonates", our intention that for the remainder of 2013 our focus
will be on the initiation of a waterflood pilot in the Otter area and
preparation of integrated development programs across the Slave Point play for
2014 and beyond; and under "Play Update - Secondary Recovery", our confidence
in the potential to increase recoveries and create incremental value from the
application of waterflood and other enhanced oil recovery schemes, our plan
that over the balance of 2013 and into 2014 we will implement or expand
waterfloods in the Cardium and Slave Point, and will evaluate waterflood
application to the Viking and Spearfish, and our expectation that as we focus
on enhancing value and capital returns by increasing resource recoveries, a
higher portion of our future capital programs will include upfront waterflood
investments.

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; 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 to government royalty frameworks; 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 regulatory, industry partner and other
third-party consents and approvals when required, including for acquisitions,
dispositions and mergers; 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; ; 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.


                             Penn West Petroleum Ltd.
                           Consolidated Balance Sheets

    (CAD millions, unaudited)             June 30, 2013      December 31, 2012

    Assets
    Current
                  Accounts receivable         $     368            $       364
                  Other                              64                     79
                  Deferred funding
                  assets                            118                    187
                  Risk management                    35                     76
                                                    585                    706
    Non-current
                  Deferred funding
                  assets                            250                    238
                  Exploration and
                  evaluation assets                 669                    609
                  Property, plant and
                  equipment                      10,869                 10,892
                  Goodwill                        2,020                  2,020
                  Risk management                    56                     26
                                                 13,864                 13,785
    Total assets                              $  14,449            $    14,491

    Liabilities and Shareholders'
    Equity
    Current
                  Accounts payable and
                  accrued liabilities         $     614            $       764
                  Dividends payable                 131                    129
                  Current portion of
                  long-term debt                     63                      5
                  Risk management                    37                      9
                                                    845                    907
    Non-current
                  Long-term debt                  3,062                  2,685
                  Decommissioning
                  liability                         639                    635
                  Risk management                    32                     35
                  Deferred tax
                  liability                       1,324                  1,350
                  Other non-current
                  liabilities                         7                      5
                                                  5,909                  5,617
    Shareholders' equity
                  Shareholders' capital           9,067                  8,985
                  Other reserves                     79                     97
                  Deficit                         (606)                  (208)
                                                  8,540                  8,874
    Total liabilities and
    shareholders' equity                      $  14,449            $    14,491



                                              Penn West Petroleum Ltd.
                                      Consolidated Statements of Income (Loss)

                                               Three months ended         Six months ended
                                                          June 30                  June 30
    (CAD millions, except per share
    amounts, unaudited)                           2013       2012          2013       2012

      Oil and natural gas sales               $    746    $   770      $  1,442    $ 1,659
      Royalties                                  (132)      (147)         (251)      (308)
                                                   614        623         1,191      1,351

      Risk management gain (loss)
        Realized                                   (1)          4             7       (15)
        Unrealized                                  34        363          (39)        300
                                                   647        990         1,159      1,636

    Expenses
      Operating                                    214        255           431        528
      Transportation                                 7          7            15         15
      General and administrative                    43         44            86         83
      Restructuring                                 13          -            13          -
      Share-based compensation                      16       (30)            24       (13)
      Depletion and depreciation                   270        306           549        618
      Gain on dispositions                           -       (23)             -       (95)
      Exploration and evaluation                     -          -             -          1
      Unrealized risk management (gain) loss         2         19           (3)       (23)
      Unrealized foreign exchange loss              64         35            93          4
      Financing                                     47         49            92         96
      Accretion                                     11         10            22         21
                                                   687        672         1,322      1,235
    Income (loss) before taxes                    (40)        318         (163)        401

      Deferred tax expense (recovery)                -         83          (26)        107

    Net and comprehensive income (loss)       $   (40)    $   235      $  (137)    $   294

    Net income (loss) per share
      Basic                                   $ (0.08)    $  0.50      $ (0.28)    $  0.62
      Diluted                                 $ (0.08)    $  0.50      $ (0.28)    $  0.62
    Weighted average shares
    outstanding (millions)
      Basic                                      484.6      474.3         483.2      473.5
      Diluted                                    484.6      474.4         483.2      473.6



                                Penn West Petroleum Ltd.
                         Consolidated Statements of Cash Flows

                                   Three months ended               Six months ended
                                              June 30                        June 30
    (CAD millions,
    unaudited)                     2013          2012           2013            2012

    Operating activities
          Net income
          (loss)                $  (40)       $   235        $ (137)         $   294
          Depletion and
          depreciation              270           306            549             618
          Gain on
          dispositions                -          (23)              -            (95)
          Exploration and
          evaluation                  -             -              -               1
          Accretion                  11            10             22              21
          Deferred tax
          expense
          (recovery)                  -            83           (26)             107
          Share-based
          compensation                5          (30)              8            (18)
          Unrealized risk
          management loss
          (gain)                   (32)         (344)             36           (323)
          Unrealized
          foreign
          exchange loss              64            35             93               4
          Decommissioning
          expenditures              (7)          (15)           (25)            (39)
          Change in
          non-cash
          working capital          (72)            23           (65)            (56)
                                    199           280            455             514
    Investing activities
          Capital
          expenditures            (112)         (329)          (539)           (989)
          Property
          dispositions
          (acquisitions),
          net                        29            19             38             341
          Change in
          non-cash
          working capital         (112)         (131)           (94)           (139)
                                  (195)         (441)          (595)           (787)
    Financing activities
          Increase in
          bank loan                 100           260            343             469
          Issue of equity             -             -              2               3
          Dividends paid          (104)          (99)          (205)           (199)
                                    (4)           161            140             273

    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                                 -           -       (137)       (137)
    Share-based
    compensation                         -           8           -           8
    Issued on
    exercise of
    options and
    share rights                        28        (26)           -           2
    Issued to
    dividend
    reinvestment
    plan                                54           -           -          54
    Dividends
    declared                             -           -       (261)       (261)
    Balance at June
    30, 2013                     $   9,067     $    79     $ (606)     $ 8,540

    (CAD millions,           Shareholders'       Other    Retained
    unaudited)                     Capital    Reserves    Earnings       Total

    Balance at
    January 1, 2012              $   8,840     $    95     $   132     $ 9,067
    Net and
    comprehensive
    income                               -           -         294         294
    Share-based
    compensation                         -          17           -          17
    Issued on
    exercise of
    options and
    share rights                        21        (18)           -           3
    Issued to
    dividend
    reinvestment
    plan                                56           -           -          56
    Dividends
    declared                             -           -       (256)       (256)
    Balance at June
    30, 2012                     $   8,917     $    94     $   170     $ 9,181


                             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 Thursday, August 8, 2013.

To listen to the conference call, please call 647-427-7450 or 1-888-231-8191
(toll-free). This call will be broadcast live on the Internet and may be
accessed directly at the following URL:
http://event.on24.com/r.htm?e=662540&s=1&k=7C51AB755D519A86E91ACDD6834B5428

A digital recording will be available for replay two hours after the call's
completion, and will remain available until August 22, 201321:59 Mountain Time
(23:59 Eastern Time). To listen to the replay, please dial 416-849-0833 or
1-855-859-2056 (toll-free) and enter Conference ID 21336235, followed by the
pound (#) key.

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

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