This article was originally published by Seeking Alpha on Sep. 28
Summary: Penn
West is recovering after it was hit with a major accounting scandal. The
company has recently released its impressive second quarter results. The
company has set its eyes on its long-term future. Is it worth
investing?
Penn West
Exploration (NYSE:PWE), one of the leading Canadian exploration and production
companies, has been eyeing a turnaround under the new leadership but the
company's efforts received a major setback earlier this year due to an
accounting scandal. However, the Calgary-based oil producer seems to have put
most of its problems behind it.
Penn West
operates primarily in Western Canada and focuses on production of light oils
from its reserves spread over five million acres. The company is focusing on
producing from three core plays, Cardium, Viking and Slave Point.
Penn West
holds 625 million barrels of proved and probable (2P) reserves, of which 67%
are proved, valued at $8.9 billion. These assets consist of 50% light and
medium oil, 30% natural gas, 13% heavy oils and 7% natural gas liquids, or
NGLs. At Cardium, where Penn West is eyeing its long term future, the company
has booked 161 million barrels of oil equivalents of 2P reserves while Viking
and Slave Point could have 31 million and 40 million barrels of 2P reserves
respectively.
Accounting
Scandal
Earlier in
July, Penn West made headlines when its new CFO discovered accounting
irregularities related to misclassification of some of the operating expenses
dating back to 2007. Since then, the company's shares have plummeted by23 %, …
read full article at Seeking Alpha.