CORDOVA AREA - CIBC · Cordova 2 - CORDOVA - Natural Gas Opportunity 3 - CORDOVA - Natural Gas Opportunity FUTURE DEVELOPMENT PLAN (GROSS SALES) CORDOVA WORKING INTEREST PRODUCTION

1 - PROP ALBERTA - Oil Opportunity

CORDOVA AREA OVERVIEWPenn West Exploration (“Penn West” or the “Company”) has engaged CIBC World Markets Inc. (“CIBC”) to assist with the sales process of certain interests it holds in the Cordova area of Northeast BC . Penn West will consider all proposals for the asset; however, they reserve the right to evaluate offers according to select criteria, at their sole discretion.

OPPORTUNITY HIGHLIGHTS

u Large gas resource within the Devonian Muskwa and Evie shale formations located in the Cordova Embayment, 75km east of the Horn River Basin- Over 10 Tcf net gas in place

u Significant development potential:- Net recoverable resource of over 3 Tcf- Peak net production of 225 MMcf/d

u 50/50 joint venture with Mitsubishi-led consortiumu Current working interest production average of 21 MMcfe/d

(March 2014,~100% gas) from 147 producing wells (19 shale, 128 conventional)u Penn West operates over 95% of its productionu Large undeveloped land base with 430+ location drilling inventoryu Property includes over 225,000 net acres, including over 81,000 net acres

prospective for shale gas developmentu Owned and operated infrastructure and gas processingu Geographically well-positioned for west coast LNG export to Asian markets

DISCLAIMER - This presentation is confidential and has been prepared by CIBC World Markets Inc. (“CIBC”). In preparing this presentation, CIBC has relied without any independent verification on information provided or that is publicly available. The information and any analyses in this presentation are preliminary and is not intended to constitute a “valuation,” “formal valuation,” “appraisal,” “prior valuation,” or a “report, statement or opinion of an expert” for purposes of any securities legislation in Canada or otherwise. We are not legal, tax or accounting experts and we express no opinion concerning any legal, tax or accounting matters or the sufficiency of this presentation for your purposes. This printed presentation is incomplete without reference to the oral presentation, discussion and any related written materials that supplement it. These materials are confidential and are intended solely for your benefit and for your internal use only and may not be reproduced, disseminated, quoted from or referred to in whole or in part at any time, in any manner or for any purpose, without obtaining the prior written consent of CIBC World Markets Inc. in each specific instance. CIBC employees are prohibited from offering to change or otherwise influence any research report, rating or price target to any company as inducement for the receipt of any business or compensation. CIBC is a wholly-owned subsidiary of Canadian Imperial Bank of Commerce and a part of Canadian Imperial Bank of Commerce’s wholesale banking arm, which also includes CIBC’s affiliates: CIBC World Markets Corp., CIBC World Markets plc, CIBC World Markets Securities Ireland Limited, CIBC Australia Ltd, and CIBC World Markets (Japan) Inc. All values are expressed in Canadian dollars, unless otherwise noted.

94-P-594-P-5 94-P-694-P-6 94-P-794-P-7 94-P-894-P-8

94-P-994-P-994-P-1094-P-1094-P-1194-P-1194-P-1294-P-12

94-P-1394-P-13 94-P-1494-P-14 94-P-1594-P-15 94-P-1694-P-16

T118

T119

T120

T121

T122

T123

T124

T125

T126

R12W6

BR

ITIS

H C

OLU

MB

IAB

RIT

ISH

CO

LUM

BIA

ALB

ERTA

ALB

ERTA

CORDOVA BASINCORDOVA BASIN

HORN RIVER BASINHORN RIVER BASIN

CORDOVA AREA

Penn West Land

Penn West Well

SALE PROCEDURE

Confidentiality Agreement (“CA”) – Signed CAs should be forwarded by email or courier to Alan Kelly.

Confidential Information – Once a CA has been executed, confidential information will be made available to qualified parties through:- Access to a Virtual Data Room (“VDR”)- Technical Presentations

Technical Presentations – Presentations will be held in CIBC’s Calgary office.

Offer Submission – Bid date to be communicated at a later time

Contacts – Interested parties are not to contact the Company directly. All communications, inquiries and requests for information relating to the process should be directed to one of the CIBC individuals.

4 - CORDOVA - Natural Gas Opportunity 1 - CORDOVA - Natural Gas Opportunity

Edmonton

Calgary

Regina

T120

T110

T100

T90

T80

T70

T60

T50

T40

T30

T20

T10

94-O94-P

94-J94-I

94-G94-H

94-B

93-O93-P

93-J93-I

W6M

W5M

W4MR2

0

R20

R10

R10

W3M W2M

R20

R10

R10

R20

A L B E R T A SASKATCHEWANB . C .

Lloydminster

Ft. McMurray

Grande Prairie

CORDOVA

CORDOVA AREADenis RajotteManaging Director

[email protected]

Denise PoleyHead Acquisitions

& Divestitures403-260-0502

[email protected]

Rahim Daredia Chief Engineer 403-216-3004

[email protected]

Chris HindManaging Director

[email protected]

Jack LuiDirector

[email protected]

Alan KellyAssociate

416-594-7443 [email protected]

CIBC World Markets Inc.9th Floor, Bankers Hall East

855 – 2nd Street SWCalgary, Alberta T2P 4J7

Fax: 403-260-0524

PLAY OVERVIEWu Three main producing zones:

- Base production is comprised of unconventional shale gas from the Devonian Muskwa and conventional production from the Jean Marie and Debolt formations

u Future development is focused on the Muskwa formation, with additional resource capture from the Evie formation

u 50-85 Bcf/section in place for Muskwa and Evie formations combined

TYPE CURVEu Several years of appraisal drilling has led to greater

understanding of the play and overall development strategy

u Optimization of drilling and completion techniques is ongoing

u Opportunity for capital and operating cost reductions- Lower per-mcf operating costs on shale development versus conventional legacy production

u Go forward type curve shows positive economics in current gas price environment- Substantial value uplift as gas prices increase

INFRASTRUCTUREu Penn West operated Wildboy plant:

140 MMcf/d raw gas capacity (~45 MMcf/d current throughput)

u Partnership owned 80 km 10” pipeline tied into TCPL

R12W694-P-194-P-294-P-394-P-4

T118

T119

T120

T121

T122

T123

T124

T125

T126

Penn West LandLEGEND

Penn West Gas Gathering

Penn West Sales PipelineTCPL Sales Pipeline

Penn West Wildboy Plant

CODORVA INFRASTRUCTURE MAP

Penn West Wildboy PlantRaw Gas Capacity: 140 MMcf/dThroughput: 45 MMcf/d (32% of cap)

WildboyWildboy

CordovaCordova


FUTURE DEVELOPMENT PLAN (GROSS SALES)

CORDOVA WORKING INTEREST PRODUCTION HISTORY

TYPE CURVE EVOLUTION

CORDOVA AREA INFRASTRUCTURE

R12W694-P-194-P-294-P-394-P-4

T118

T119

T120

T121

T122

T123

T124

T125

T126







WildboyWildboy

CordovaCordova

RESERVOIR QUALITY COMPARISON

ParameterHorn River Muskwa

Cordova Muskwa

Cordova Evie

Gross Thickness (m) 60-80 50-80 40-50

TOC (%) 3.5-4.5 3.5-4.5 5-6

Effective Porosity (%) 2-8 6 4-5

Gas Content (scf/ton) ~105 ~112 ~75

Average Depth (m) ~2,600 ~1,800 ~2,000

CO² Content (%) 9 5 11

Average Pressure (MPa) ~36 ~18 ~20

BASIN OVERVIEW

Source: National Energy Board

Liard BasinLiard Basin

Bovi

e St

ruct

ireBo

vie

Stru

ctire

Bovi

e St

ruct

ireBo

vie

Stru

ctire

Fort Simpson(Mid Besa River)


MuskwaOtter Park-Evie

(Lower Besa River)


(Lower Besa River)

Muskwa Otter ParkMuskwa Otter Park


Lower Otter ParkLower Otter Park

Fort SimpsonFort Simpson

Slave Point U. KegRiver Reefal Carbonates


L. Keg River Platform CarbonatesL. Keg River Platform Carbonates

Basinal Slave PointSulphur Point Carbonates


Nahanni Platform CarbonatesNahanni Platform Carbonates

EvieEvie EvieEvie

WW EEHorn River BasinHorn River Basin Cordova EmbaymentCordova Embayment

7000

6000

5000

4000

3000

Raw

Gas

Rat

e (m

cf/d

)

Month0 3 6 9 12 15 18 21 24

2000

1000

0

2015 Target 20% Performance Uplift

600m Type Curve

300m Type Curve

5.7 bcf

11.4 bcf

13.7bcf

-

50

100

150

200

250

300

350

400

450

500

2014 2019 2024 2029 2034 2039 2044 2049 2054 2059 2064 2069

Pro

du

ctio

n (

Sale

s)(M

Mcf

e/d)

Base Muskwa Evie

35

30

25

20

15

10

5

0

Jan-1

0

Mar

-10

May

-10

Jul-

10

Sep

-10

Nov-

10

Jan-1

1

Mar

-11

May

-11

Jul-

11

Sep

-11

Nov-

11

Jan-1

2

Mar

-12

May

-12

Jul-

12

Sep

-12

Nov-

12

Jan-1

3

Mar

-13

Jul-

13

May

-13

Sep

-13

Nov-

13

Jan-1

4

(MM

cfe/

d)

Shale Gas Conventional


Bovi

e St

ruct

ireBo

vie

Stru

ctire

Bovi

e St

ruct

ireBo

vie

Stru

ctire




(Lower Besa River)


(Lower Besa River)











EvieEvie EvieEvie



Bovi

e St

ruct

ireBo

vie

Stru

ctire

Bovi

e St

ruct

ireBo

vie

Stru

ctire




(Lower Besa River)


(Lower Besa River)











EvieEvie EvieEvie


FUTURE DEVELOPMENTu Contingent + Prospective Resource effective Dec 31, 2012 (Draft best est.)

- Muskwa: 2,008 Bcfe- Evie: 1,099 Bcfe

u Shale gas well inventory of over 430 locations - Estimated gross peak production over 450 MMcf/d for ten years with 25+ year drilling inventory

u New BC two-tier deep royalty program provides additional drilling credits for Muskwa wells in addition to Evie deep-royalty programu Additional upside potential in Jean Marie formation currently being demonstrated by area operators near Cordova

PLAY OVERVIEWu Three main producing zones:

- Base production is comprised of unconventional shale gas from the Devonian Muskwa and conventional production from the Jean Marie and Debolt formations

u Future development is focused on the Muskwa formation, with additional resource capture from the Evie formation

u 50-85 Bcf/section in place for Muskwa and Evie formations combined

TYPE CURVEu Several years of appraisal drilling has led to greater

understanding of the play and overall development strategy

u Optimization of drilling and completion techniques is ongoing

u Opportunity for capital and operating cost reductions- Lower per-mcf operating costs on shale development versus conventional legacy production

u Go forward type curve shows positive economics in current gas price environment- Substantial value uplift as gas prices increase

INFRASTRUCTUREu Penn West operated Wildboy plant:

140 MMcf/d raw gas capacity (~45 MMcf/d current throughput)

u Partnership owned 80 km 10” pipeline tied into TCPL

R12W694-P-194-P-294-P-394-P-4

T118

T119

T120

T121

T122

T123

T124

T125

T126







WildboyWildboy

CordovaCordova


FUTURE DEVELOPMENT PLAN (GROSS SALES)

CORDOVA WORKING INTEREST PRODUCTION HISTORY

TYPE CURVE EVOLUTION

CORDOVA AREA INFRASTRUCTURE

R12W694-P-194-P-294-P-394-P-4

T118

T119

T120

T121

T122

T123

T124

T125

T126







WildboyWildboy

CordovaCordova

RESERVOIR QUALITY COMPARISON

ParameterHorn River Muskwa

Cordova Muskwa

Cordova Evie

Gross Thickness (m) 60-80 50-80 40-50

TOC (%) 3.5-4.5 3.5-4.5 5-6

Effective Porosity (%) 2-8 6 4-5

Gas Content (scf/ton) ~105 ~112 ~75

Average Depth (m) ~2,600 ~1,800 ~2,000

CO² Content (%) 9 5 11

Average Pressure (MPa) ~36 ~18 ~20

BASIN OVERVIEW

Source: National Energy Board


Bovi

e St

ruct

ireBo

vie

Stru

ctire

Bovi

e St

ruct

ireBo

vie

Stru

ctire




(Lower Besa River)


(Lower Besa River)











EvieEvie EvieEvie


7000

6000

5000

4000

3000

Raw

Gas

Rat

e (m

cf/d

)

Month0 3 6 9 12 15 18 21 24

2000

1000

0

2015 Target 20% Performance Uplift

600m Type Curve

300m Type Curve

5.7 bcf

11.4 bcf

13.7bcf

-

50

100

150

200

250

300

350

400

450

500

2014 2019 2024 2029 2034 2039 2044 2049 2054 2059 2064 2069

Pro

du

ctio

n (

Sale

s)(M

Mcf

e/d)

Base Muskwa Evie

35

30

25

20

15

10

5

0

Jan-1

0

Mar

-10

May

-10

Jul-

10

Sep

-10

Nov-

10

Jan-1

1

Mar

-11

May

-11

Jul-

11

Sep

-11

Nov-

11

Jan-1

2

Mar

-12

May

-12

Jul-

12

Sep

-12

Nov-

12

Jan-1

3

Mar

-13

Jul-

13

May

-13

Sep

-13

Nov-

13

Jan-1

4

(MM

cfe/

d)

Shale Gas Conventional


Bovi

e St

ruct

ireBo

vie

Stru

ctire

Bovi

e St

ruct

ireBo

vie

Stru

ctire




(Lower Besa River)


(Lower Besa River)











EvieEvie EvieEvie



Bovi

e St

ruct

ireBo

vie

Stru

ctire

Bovi

e St

ruct

ireBo

vie

Stru

ctire




(Lower Besa River)


(Lower Besa River)











EvieEvie EvieEvie


FUTURE DEVELOPMENTu Contingent + Prospective Resource effective Dec 31, 2012 (Draft best est.)

- Muskwa: 2,008 Bcfe- Evie: 1,099 Bcfe

u Shale gas well inventory of over 430 locations - Estimated gross peak production over 450 MMcf/d for ten years with 25+ year drilling inventory

u New BC two-tier deep royalty program provides additional drilling credits for Muskwa wells in addition to Evie deep-royalty programu Additional upside potential in Jean Marie formation currently being demonstrated by area operators near Cordova

1 - PROP ALBERTA - Oil Opportunity

DISCLAIMER - This presentation is confidential and has been prepared by CIBC World Markets Inc. (“CIBC”). In preparing this presentation, CIBC has relied without any independent verification on information provided or that is publicly available. The information and any analyses in this presentation are preliminary and is not intended to constitute a “valuation,” “formal valuation,” “appraisal,” “prior valuation,” or a “report, statement or opinion of an expert” for purposes of any securities legislation in Canada or otherwise. We are not legal, tax or accounting experts and we express no opinion concerning any legal, tax or accounting matters or the sufficiency of this presentation for your purposes. This printed presentation is incomplete without reference to the oral presentation, discussion and any related written materials that supplement it. These materials are confidential and are intended solely for your benefit and for your internal use only and may not be reproduced, disseminated, quoted from or referred to in whole or in part at any time, in any manner or for any purpose, without obtaining the prior written consent of CIBC World Markets Inc. in each specific instance. CIBC employees are prohibited from offering to change or otherwise influence any research report, rating or price target to any company as inducement for the receipt of any business or compensation. CIBC is a wholly-owned subsidiary of Canadian Imperial Bank of Commerce and a part of Canadian Imperial Bank of Commerce’s wholesale banking arm, which also includes CIBC’s affiliates: CIBC World Markets Corp., CIBC World Markets plc, CIBC World Markets Securities Ireland Limited, CIBC Australia Ltd, and CIBC World Markets (Japan) Inc. All values are expressed in Canadian dollars, unless otherwise noted.

SALE PROCEDURE

Confidentiality Agreement (“CA”) – Signed CAs should be forwarded by email or courier to Alan Kelly.

Confidential Information – Once a CA has been executed, confidential information will be made available to qualified parties through:- Access to a Virtual Data Room (“VDR”)- Technical Presentations

Technical Presentations – Presentations will be held in CIBC’s Calgary office.

Offer Submission – Bid date to be communicated at a later time

Contacts – Interested parties are not to contact the Company directly. All communications, inquiries and requests for information relating to the process should be directed to one of the CIBC individuals.

4 - CORDOVA - Natural Gas Opportunity

Denis RajotteManaging Director

[email protected]

Denise PoleyHead Acquisitions

& Divestitures403-260-0502

[email protected]

Chris HindManaging Director

[email protected]

Jack LuiDirector

[email protected]

Alan KellyAssociate

416-594-7443 [email protected]

CIBC World Markets Inc.9th Floor, Bankers Hall East

855 – 2nd Street SWCalgary, Alberta T2P 4J7

Fax: 403-260-0524

Documents

CORDOVA AREA - CIBC · Cordova 2 - CORDOVA - Natural Gas Opportunity 3 - CORDOVA - Natural Gas Opportunity FUTURE DEVELOPMENT PLAN (GROSS SALES) CORDOVA WORKING INTEREST PRODUCTION