(signed)Murray R. Nunns President and Chief Executive Officer Calgary, Alberta February 13, 2013
(1) Contingent resources are net best estimate figures. See "Contingent Resource Disclosures" below.Outlook This outlook section is included to provide shareholders with information about our expectations as at February 13, 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, including our current disposition program. 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 external market factors and internal performance. After the divestment activity in 2012, we forecast 2013 average production of between 135,000 and 145,000 boe per day. There have been no changes to our guidance from our prior forecast, released on January 9, 2013 with our "2013 Budget" release and filed on SEDAR at http://www.sedar.com. All 2012 annual capital expenditure and production guidance released on November 2, 2012 with our third quarter results were met. 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, netback and debt to EBITDA ratio. 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. Debt to EBITDA is a financial covenant for Penn West in the agreements governing our credit facility and our senior unsecured notes and compares our current and long-term debt balance to our earnings before interest, taxes, depreciation and amortization.