CALGARY — Penn West Energy Trust (TSX:PWT.UN), which plans to convert to a growth-oriented corporation in the next 18 months, will focus this year on expanding its already extensive conventional oil and gas holdings in Western Canada.
“As we position the company to transition to a conventional exploration company, we’ll continue to work hard to unlock the potential of our assets, as we believe that we have the assets to add considerable value to our investors,” said chief executive officer Bill Andrew.
The Calgary-based trust plans to spend more in 2010 than it did last year on capital projects, and has set up a team at the company to scope out energy prospects.
The company plans to spend between $700 million and $850 million in 2010, with an eye to exploiting large light oil plays in Manitoba, Saskatchewan and Alberta. Production this year is forecast to be between 165,000 and 173,000 barrels of oil equivalent per day.
Thursday’s figures were scaled down slightly from a capital spending forecast that Penn West released in December, which called for between $750 million and $900 million of spending and between 167,000 and 175,000 oil-equivalent barrels per day of production.