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Penn West Exploration Announces Its Financial Results For The Fourth Quarter Ended December 31, 2012 And 2012 Year-end Reserve Results

Stocks in this article: PWE PWT

a)   Working Interest Reserves using forecast prices and costs


    Penn West as at
    December 31, 2012

    Reserve
    Estimates
    Category          Light &                       Natural Gas     Barrels of
    (1)(2)         Medium Oil Heavy Oil Natural Gas     Liquids Oil Equivalent
                      (mmbbl)   (mmbbl)       (bcf)     (mmbbl)        (mmboe)

    Proved
    Developed
    producing             163        44         641          21            334
    Developed
    non-producing           4         1          32           1             11
    Undeveloped            76         2         100           5             99
    Total Proved          243        46         773          27            445
    Probable              108        44         413          11            231
      Total Proved
     plus Probable        351        90       1,186          38            676
    (1) Working interest reserves are before royalty burdens and exclude
        royalty interests.
    (2) Columns may not add due to rounding.

b)   Net after Royalty Interest Reserves using forecast prices and costs


    Penn West as at
    December 31, 2012

    Reserve
    Estimates
    Category          Light &                       Natural Gas     Barrels of
    (1)(2)         Medium Oil Heavy Oil Natural Gas     Liquids Oil Equivalent
                      (mmbbl)   (mmbbl)       (bcf)     (mmbbl)        (mmboe)

    Proved
    Developed
    producing             140        40         564          15            290
    Developed
    non-producing           4         1          27           1              9
    Undeveloped            65         2          89           4             86
    Total Proved          209        42         680          20            384
    Probable               89        38         349           8            194
    Total Proved
    plus Probable         298        81       1,029          28            578
    (1) Net after royalty reserves are working interest reserves including
        royalty interests and deducting royalty burdens.
    (2) Columns may not add due to rounding.

Additional reserve disclosures, as required under NI 51-101, will be contained in our Annual Information Form that will be filed on SEDAR at http://www.sedar.com.

c)  Reconciliation of Working Interest Reserves using forecast prices and costs


    Reconciliation Items (1)  Light and Medium Oil (mmbbl)   Heavy Oil (mmbbl)
                                                  Proved                   Proved
                                                    plus                     plus
                                Proved Probable probable Proved Probable probable

    December 31, 2011              288      113      401     51       22       73
    Extensions                       5        9       14      -        -        -
    Improved Recovery                1        5        7      2       22       24
    Infill Drilling                 23       14       37      2        2        3
    Technical Revisions              7      (11)      (4)     3       (1)       3
    Discoveries                      -        -        -      -        -        -
    Acquisitions                     -        -        -      -        -        -
    Dispositions                   (54)     (22)     (75)    (5)      (2)      (6)
    Economic Factors                (1)       -       (2)     -        -        -
    Production                     (28)       -      (28)    (6)       -       (6)
    December 31, 2012              243      108      351     46       44       90
    Reconciliation Items (1)  Natural Gas Liquids (mmbbl)   Natural Gas (bcf)

                                                  Proved                   Proved
                                                    plus                     plus
                              Proved  Probable  probable Proved Probable probable

    December 31, 2011             28        12        39    783      452    1,235
    Extensions                     1         1         1     17       43       60
    Improved Recovery              1         -         1      2        1        3
    Infill Drilling                -         -         1     10        9       18
    Technical Revisions            2        (1)        1    138      (86)      51
    Discoveries                    -         -         -      -        -        -
    Acquisitions                   -         -         -      4        1        6
    Dispositions                  (1)       (1)       (2)   (12)      (5)     (18)
    Economic Factors              (1)        -        (1)   (46)       -      (47)
    Production                    (4)        -        (4)  (123)       -     (123)
    December 31, 2012             27        11        38    773      413    1,186

    Reconciliation Items (1)      Barrels of Oil Equivalent (mmboe)

                                                       Proved plus
                                  Proved   Probable       probable

    December 31, 2011                498        222            719
    Extensions                         9         17             25
    Improved Recovery                  5         28             33
    Infill Drilling                   27         17             44
    Technical Revisions               35        (27)             8
    Discoveries                        -          -              -
    Acquisitions                       1          -              1
    Dispositions                     (61)       (25)           (87)
    Economic Factors                 (10)         -            (10)
    Production                       (58)         -            (58)
    December 31, 2012                445        231            676
    (1) Columns may not add due to rounding.

On a proved plus probable basis our reserves continued to be weighted 71 percent to crude oil and liquids (2011 - 71 percent) and 29 percent to natural gas (2011 - 29 percent). Our successful tight-oil development activities and the application of techniques including waterflood and EOR offset 2012 reserve dispositions which were predominately weighted towards oil. Economic revisions were primarily due to lower natural gas prices on base assets.

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