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Penn West Exploration Announces Its Financial Results For The Second Quarter Ended June 30, 2013

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.

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