Penn West announces its results for the third quarter ended September 30, 2009

Penn West announces its results for the third quarter finished September 30, 2009

CALGARY, ALBERTA – (Marketwire – November 5, 2009) – Penn West Energy Trust (TSX: PWT.UN) (NYSE: PWE) is pleased to announce results for its third quarter finished September 30, 2009

Strategy – Penn West continued to focus on positioning the company to go from a trust to a business model before the end of 2011. In the future, we primarily use a combination of organic growth and dividends to produce a return on capital that will allow the other North oil independent senior American and gas producers. Before conversion to a company exploration and production, we will continue our efforts on promoting our large-scale resource plays in our current range of assets. As our results to date are promising, we will allocate a greater part of our budget for 2010 capital drilling horizontal wells in various stages within our part of the oil resources plays. Our goal is to apply this technology to boost production and reserves of these valuable resources with special emphasis on those fleeting-term plays that focus on crude oil, as Waskada, Dodsland, Pembina and Leitchville. This will greatly expand our inventory of sites with a focus on risk reduction, while providing the kind of scale necessary to advance the company forward

operations
-. Third quarter production averaged 178,124 (1) boe per day and was weighted at 59 percent of oil and natural gas liquids

-. Production for the initially nine months of 2009 averaged 179,600 boe per day which is at the upper end of our forecast of approximately 175,000 to 180,000 boe per day. During the initially nine months of 2009, Penn West had net provisions of approximately 3,000 boe per day

-. Crude oil and NGL production averaged 104,583 barrels per day and natural gas production averaged approximately 441 million cubic feet per day in the third quarter of 2009

-. enhancement capital expenditures were one million in the third quarter of 2009, net $ 2 million from the sale of net assets. During the quarter, we drilled a total of 36 net wells, including 29 horizontal wells in various stages frock, with a success rate of 100 percent

financial results

-. Funds tide (2) 9 million in the third quarter of 2009 was 19 percent lower than the 0 million in the second quarter of 2009 and 47 percent less than the 2 million achieved in the third quarter of 2008. On a per unit basis (2) valuable movement of funds was 0.84 per unit for the third quarter of 2009 compared to 0.05 per unit for the second quarter of 2009 and 0.73 per unit for the third quarter of 2008. Downward tide of funds in the second quarter of 2009 was due to millions of capital gains in the second quarter following the monetization of foreign exchange contracts

-. Net income was U.S. $ (0.02 per-unit basis) in the third quarter of 2009 compared to a net loss of $ (0.10 per unit basis) in the second quarter of 2009 and net income, 062 million (0.78 per unit basis) in the third quarter of 2008. Considerably higher income last year was primarily due to unrealized gains on risk management of our oil and natural gas collars

-. Net income (2) of 0.91 per BOE in the third quarter of 2009 was one percent higher than the second quarter of 2009 and 40 percent from the third quarter of 2008. The fall of 2008 was primarily due to commodity price

-. During the initially nine months of 2009, net debt Penn West (2) was cut-rate by about 0 million (3)
.
(1) Please refer to the “Oil and Gas Advisory” below for information regarding the term “boe”.

(2) The terms ” tide of funds “,” tide of funds per unit basis, “” net income “and” net debt “are non-GAAP measures. Please refer to “Calculating the tide of funds” and “Non-GAAP Measures Advisory” below. Funds tide for the initially nine months of 2009 included gains millions of foreign exchange contracts, including including monetizing the rest of 2009 contracts to hedge the currency risk on oil prices denominated in U.S. dollar, which took house in June 2009.

(3) Includes variation of the long-term debt, convertible debentures and working capital (excluding future income taxes and risk management) by the consolidated balance sheets.

business background

– Oil prices in the third quarter of 2009 average per barrel WTI US.29 and appreciated an average of US.62 barrel WTI in the second quarter of 2009. The price of crude oil has augmented while throughout 2009 due to the optimism of economic recovery continues. In the third quarter of 2008, WTI oil price averaged US8.13 a barrel. The year over year decline in the price of WTI is mainly due to decreased demand for distillate products

-. The AECO monthly index average of 0.87 / GJ for the third quarter of 2009 compared to 0.78 per GJ the same period in 2008 and 0.47 per GJ for the second quarter of 2009. The price of natural gas continues to be impacted by weaker industrial demand and high inventories

Following -. September 30, 2009, spot prices of crude oil recovered in a year to date over U.S. WTI. 00 per barrel and the price of spot natural gas to about $ 00 per GJ at AECO

financing -. Updated: September 30, 2009, Penn West had $ 0.8 billion unused credit capacity on our bank credit facility

-. On November 4, 2009, the Board of Directors approved the cancellation of the second tranche of the bank facility. This rotating tranche totals 0,000,000 and it is not extended. Penn West’s skill unused credit after such cancellation will be about 0.0 billion

-. Subsequent to the end of the third quarter, Penn West entered into necklaces additional crude oil for 2010 on 5,000 barrels per day with an average floor US.00 of the barrel and an average ceiling of US.86 barrel

Distributions -. Penn West Board of Directors has chose to maintain the level of distribution 0.15 per trust unit per month, subject to maintenance of current forecasts of commodity prices, production levels and finalizing the 2010 budget of the capital.

Quarterly Financial Synopsis (in millions, apart from per share and production)

September 30, June 30, March 31, December 31,
Three months finished 2009 2009 2009 2008 —————————————–
——- —————————-
Sales (1) 800 $ 791 $ $ $ 781 968
Fund flows 349 430 348 490
basic per share 0.84 1.05 0.87 1.27 />
Revenue 1.26 Net (loss) 7 (41) (98) 404
Basic per unit 0.02 (0.10) (0.25) 1.05 />
188 188 276 393
per unit $ 0.45 $ 0.45 $ 0.69 br $ 1.02
Production Liquids (bbls / d) (2) 104,583 104,070 105,643 105,644
Natural gas (MMcf / d) 441 459 447 476
– ——— —————————————– br ————— ——— Total (boe / d) 178 124 180 601 180 096 184 908
—- ————- ————————————- ————- ———

(1) Yucky revenues include gains and losses on contracts goods.
(2) Includes crude oil and natural gas liquids.

HIGHLIGHTS

Three months finished Nine months finished September 30

September 30 — ————————– br ——————-%
% 2009 2008 Change 2009 2008 Change ————
br ———————– ————————– —————
Financial (in millions, except />
Sales (1) 800 $ $ 1,235 (35) 2,372 $ $ 3,683 (36)
Funds tide 349 662 (47) 1,127 2,047 (45)
valuable per share 0.84 1.73 (51) 2.75 5.49 (50)
per diluted share 0.83 1.71 (51) 2.74 5.41 (49)
Net income (loss) 7 1,062 (99) (132) 817 ( 100)
valuable per share 0.02 2.78 (99) (0.32) 2.19 (100)
per diluted share 0.02 2.73 (99) (0.32 ) 2.17 (100)
Capital expenditures, net
(2) 142 232 (39) 319 757 (58)
the long-term debt at end of period
3,559 3,679 (3) 3,559 3,679 (3)
Convertible Debentures 273 328 (17) 273 328 (17) Distributions
(3) 188 $ $ 388 (52) 721 $ $ 1,108 ( 35) The payout ratio
(4) 54% 59% (5) 64% 54% 10

operations of daily oil production Light

and NGLs (bpd) 77,513 78,762 (2) 78,141 80,792 (3)
heavy fuel oil (bpd) 27,070 28,136 (4) 26,621 27,646 (4)
Natural gas (MMcf / d ) 441 500 (12) 449 495
(9) ———– ———————— ————————– br —————
Total Production (boe / d) 178,124 190,177 (6) 179,600 190,991
(6) —— ———————– ————————— br ——————– The average selling price

(per barrel) $ 64.15 $ 110.45 (42) $ 55.58 $ 103.65 (46)
Heavy oil (per barrel) 58.72 98.07 (40) 50.94 86.12 (41)

Natural gas (per Mcf) 3.13 8.49 (63 ) 4.05 8.88 (54)
net income per boe
Price $ 44.58 $ 83.23 (46) $ 41.85 $ 79.73 (48)

Risk management gain (loss) 4.17 (11.69) 100 6.41 (9.03) 100 />
The net selling price 48.75 71.54 (32) 48.26 70.70 (32)
Royalties (7.41) ( 15.23) (51) (7.12) (14.27) (50) operating expenses
(14.90) (12.49) 19 (14.87) (12.01) 24
Transportation (0.53) (0.49) 8 (0.52) (0.49) 6 />
$ 25.91 $ 43.33 (40) $ 25.75 $ 43.93
(41) ———- ————————– ———————— —————-

(1) Yucky income includes gains and losses on commodity contracts.
(2) Excludes business combinations and includes net proceeds on property acquisitions
/ provisions.
(3) Includes distributions paid prior to those reinvested in trust
under the distribution reinvestment plot.
(4) The payout ratio is calculated as distributions paid divided by the tide of funds.

Three months finished Nine months finished September 30

September 30 ———- – br ———————————— —- 2009 2008 2009 2008
– ———————————————– —
Yucky Net Yucky Net Yucky Net Yucky Net ———————————-
br —————————————— oil 33 27 85 46 69 49 189 102 Natural gas
11 4 97 40 32 12 202 92
dry – - 2 2 1 1 8 8 />
44 31 184 88 102 62 399 202
stratigraphic and service 5 5 10 10 8 7 36 34
– —– ——————————————— br ——————- —– Total 49 36 194 98 110 69 435 236 ———
—– ——————————————— —– br ———— success rate (1) 100% 98% 99% 96% ————— –
——————————————– —— ——— br (1) The success rate is calculated excluding stratigraphic and service wells.

In response to falling commodity prices due to the turmoil in financial markets, Penn West has cut-rate its enhancement programs from 2009 to 2008 and successfully focused its efforts on the restoration of production to capital-intensive and Optimization smallest amount maintain its production. Penn West continues to work on promoting more of our resource plays and, subject to commodity price and other factors, intends to boost capital allowances to concentrate its resources of oil plays in 2010.

The high success rate reported in the current quarter reflects transition Penn West drilling programs in the past that were about 90 percent of vertical wells to drill programs which now includes about 80 percent of the horizontal well multi-the boards fracturing.

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At September 30, 2009
br ————————– —————— ——
Production Non-Production ————– —————– br ——————- 2009 2008% Change 2009 2008% change
————— ——————————— —————– ———–
yucky acres (000) 6,203 6,377 (3) 3,192 4,337 (26)
net acres (000) 4,124 4,182 (1) 2,490 3,494 (29)
Average working interest 66% 66% – 78% 81%
(3) ———– ————– ———————————— ————- br –

Lower net acres last year is the upshot of timeouts
land non-core areas and property division.

CORE BUSINESS

wells drilled Net non-production />
Sensitivity of end September 30, 2009 (thousands of acres net)
———————— —— ——————————————– – />
East />


42 750 ——- ————————————————– br ——————- 69 2490
——————— ————————————————– —–

TRUST UNIT DATA

Three months finished Nine months finished September 30
September 30
——————————————- –
(million units) 2009 2008% Change 2009 2008% Change ————————
—— ——————————————- br — Valuable weighted average 418.0 381.5 410.3
October 10 372.5 419.6 389.9 Diluted
410.3 380.1 Aug. 8
Outstanding at September 30 419.4 383.5 9
———- ———————– —————-<--------------------------- br />

In February 2009, Penn West issued approximately 17.7 million trust units on an underwriting basis with a syndicate of underwriters. On April 30, 2009, Penn West issued a 4.7 million shares of additional trust on the closing of the acquisition Reece Energy Exploration Corp..

Letter to our unitholders

With a series of quarter consistent strong operating performance, and we continue to unlock the potential of our assets with new technologies, our outlook Penn West remains very optimistic. In the third quarter of 2009, we maintained our strong production base, has continued to strengthen our balance, and advanced our inventory of projects in the fleeting and long term. The production remains at the upper end of our projected annual 175,000 to 180,000 boe per day. Our investment program has shown continued success over 80 percent of our expenditures go to projects that are consistent with high oil yields, despite a soft commodity prices. Our enhancement teams continue to test the extent to which new technologies and developments can be useful to opportunities available in our list of existing assets. We are encouraged by the results on several of our enhancement projects and we look forward to plotting next steps in these plays. Based on our strong operating results and our updated list growing low risk, high return locations for oil drilling, we expect increases in our capital enhancement budget in the years to come.

Funds tide for the quarter 9 million was in line with the second quarter of 2009 (excluding a gain of time) but below third quarter of 2008 due to lower year on year price of commodities. The average monthly index AECO 0.87 / GJ for the third quarter of 2009, well below the 0.78 per GJ produced in the same period, only a year ago. Crude oil prices continued to strengthen in the third quarter, with an average U.S. .29 a barrel, below the US8.13 a barrel seen in the same period a year ago but above the US.62 barrel seen in the previous quarter. Both prices of oil and natural gas continued to rise after the end the third quarter of 2009.

In the third quarter of 2009, Penn West averaged a net income of 0.91 per boe, including hedging gains realized. Our remainder of 2009 the Crude oil production is 31 percent covered with soil on average US.00 a barrel and the remaining 15 percent of our 2009 production of natural gas covered with soil averaged 0.50 / GJ. Penn West continues to caution hedge future production under our risk management program underway.

Net Debt Penn West, including working capital was cut-rate by about 0 million over the initially nine months 2009. debt reduction and diversification remains a priority because we believe a stronger balance sheet will better position us for growth in our core sectors.

We are currently finalizing our capital expenditure budget for 2010. It’s anticipated that we will proceed with a drilling program with even greater attention on the applications of multi-the boards fracturing technology and horizontal opportunities crude oil. In 2010, we expect a program of capital expenditures between 0 and 0000000, and the orientation of production from 170,000 to 180,000 boe per day, before acquisitions and disposals.

On our last day of Investors October 21, 2009, we outlined a number of our growth and plays a comment on our plans to convert from an income trust model to a conventional exploration and production company over the next two years. If a specific transition date has not been determined, we have developed certain strategies, including detailed plans to boost capital spending on our production of goods to sustain growth. Both through our transition period and later as a society, we will target a business model that refers to a combination of price growth and dividends to our shareholders. We are firm in our conviction that our asset base is the size and quality to provide a platform for future growth, while providing an attractive dividend income stream.

On behalf of the Board, William

Andrew E. Chief Executive Officer

Murray R. Nunns
President and Chief Operating
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Outlook Outlook This section is included to provide unitholders with information regarding our expectations as of November 4, 2009, for capital expenditures and net production for 2009 and 2010 and readers are cautioned that information may not be appropriate for other purposes. These information constitute forward looking statements. Readers should annotation the assumptions, risks and warnings under the bearing “Forward-Looking Statements”.

Our forecast for 2009 capital spending of enhancement should be of the order of about 0 to 0,000,000. The 2009 program of capital has been cut-rate compared to 2008 due to commodity prices. The remainder of the 2009 capital program will continue to focus on programs that add production at very high efficiency measures through optimization programs and return to production, combined with enhancement efforts focused on promoting some of our resource areas and projects of oil recovery. Based on this level of capital expenditures, our average production forecast for 2009 remains in the range of about 175 000 to 180 000 boe per day.

Our previous forecast, issued Dignified 11, 2009 with our second quarter 2009 and filed on SEDAR at www.sedar.com, was founded in 2009 capital expenditures of enhancement between 0 and 5 million in hopes that spending would be closer to the lower end of the range and average production is about 175,000 to 180,000 boe per. day for 2009

As we enter 2010, the outlook for crude oil prices seems to be positive, but the price outlook for natural gas is mixed. We developed a preliminary budget for 2010 in capital of about 0 to 0 million, excluding acquisition activities and disposition. Based on this level of capital expenditure, production is estimated at about 170,000 to 180,000 boe per day, before acquisitions and disposals in 2010.

Non-GAAP Advisory

The above information includes non-GAAP measures are not defined by generally usual accounting principles (GAAP), including including financial flows, cash tide per unit-valuable, net income, the payout ratio and net debt. The non-GAAP measures have no standardized meaning prescribed by GAAP and are therefore not be comparable to akin measures presented by other issuers. tide of funds is cash tide from operating activities before changes in non-cash working capital and asset retirement expenditures. tide of funds is used to evaluate our skill to fund distributions and intended capital programs. Net income per unit is a measure of the production of operating margin used in capital allocation decisions. Operating margin is calculated as revenue less royalties, operating costs and transportation. The payout ratio is divided by the flux distributions of funds and we use it to evaluate the adequacy of cash flows to fund capital programs. Net debt is the change in long-term debt, convertible debentures and working capital (excluding risk management and future income taxes) and is used to evaluate our level of indebtedness and our distribution and therefore levels of capital investment.

Calculation of financial flows

Three months finished Nine months finished September 30

September 30 —– br ————————- ———- (in millions, apart from per share) 2009 2008 2009 2008
—– ————————————– br ——————— from operating activities 386 $ 616 $ 963 $ 1,654 USD
Boost (decrease) in non-cash working capital
(50) 30115340
asset retirement expenditures 13 16 49 53 —-
——————————- ——————- ——————- — Fund />

basic per share 0.84 $ 2.75 $ 1.73 $ 5.49 $ />
——————- ————– ———————————— ——-

Earnings

Funds tide for the nine months finished September 30, 2009 has made millions of dollars (2008 – nil) on foreign exchange contracts of which was made from millions of monetizing our 2009 contracts changes implemented to fix the value of Canadian sales proceeds on volume of oil that were implanted in the second half of 2009.

oil and gas />
barrels of oil equivalent (boe) are based on six million cubic feet of natural gas equals one barrel of oil (6:1 ). This could be misleading if used in isolation as it is based on an energy equivalency conversion method primarily useful at the burner tip and does not represent a value equivalency at the wellhead.

Forward-Looking Statements

Certain statements contained herein constitute forward-looking statements or information (collectively, “forward-looking statements”) within the meaning of the safe harbor “provisions of applicable securities legislation. Forward-looking statements are typically identified by terms such as “anticipate,” “continue,” “estimate,” “expect,” “anticipate,” “may,” “will”, “project”, “could”, “plot,” “intend,” “should,” “believe,” “outlook,” “potential,” “target” and akin terms suggesting future events or future performance. In addition, statements relating to “reserves” or “resources” are considered forward-looking statements because they involve the implied assessment, based on estimates and assumptions that the reserves and resources described exist in the quantities intended or estimated and can. be profitably produced in the future

In particular, this document contains forward-looking statements regarding, without limitation, the following: our business strategy, including our aim to convert a hybrid model that combines an constituent of business growth, with a dividend, we intend to continue to focus on advancing our inventory of resource plays profitable, scalable, repeatable and demonstrable, we have the aim to allocate a greater part of our budget for 2010 capital drilling horizontal multi-the boards frac wells in our oil resources plays with a view to increasing production and reserves of these resources, with a particular focus on 2010 areas of oil (including Waskada, Dodsland, Pembina and Leitchville) our expectations regarding North American and global supply and demand and prices for crude oil and natural gas in 2009 and beyond, under our distribution level and the unity of factors that can influence the distribution level, our aim to continue working on the promotion of several of our resource areas and boost the capital allowances to concentrate our resources of oil plays in 2010, our intent and skill to continue to unleash the potential of our assets with new technologies, our point of view of our future, we intend to boost our capital budget enhancement in the years ahead, we intend to cover future production to manage risk and our aim to reduce and diversify the structure of our indebtedness, the skill of a strong balance sheet for our growth in our core businesses, our aim focus of our 2010 drilling program on the applications of multi-the boards fracturing technology and horizontal opportunities crude oil, our plot to convert to a conventional exploration and production company over the next two years we plot to boost

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