Also, much of the losses was temporary mark to market adjustments. These losses will be reversed as the value of a barrel of oil increases, thus increasing capital.
"Saskatchewan is a coveted asset amongst many of our competitors and with this transaction we have capitalized on the demand for high-quality oil assets of scale", David Dyck, Senior Vice President and Chief Financial Officer of Penn West commented. "This is a pivotal transaction for the Company. While we have made significant progress over the past three years in reducing our total debt, this asset sale results in a markedly improved capital structure and positions the Company in the top tier of our peers in terms of all significant debt metrics. Additionally, the sales metrics received are meaningfully above recent precedent transactions in the area and are very accretive to our shareholders."
We expect to realize nearly $100 million annually as a result of decreased interest expenses and significant reductions in G&A expenses through this transaction, which more than offsets the loss in net operating income associated with the Saskatchewan properties(1).
I just don't know. if management is acting in our best interest, then I think they know what they are doing. But since we are not in the board room, can only wait and see. I'm guessing they know something about their remaining land that we don't know.
I don't have any answers. I'm just trying to find some. Thanks for your reply. I'm a little encouraged that Schwab reinstated their B rating. They placed PWE on no rating after the earnings release, but two weeks later reinstated the B rating.
If I understand, Bloomberg said they were marketing the Dodsland Viking light oil assets in Saskatchewan. You are calling that the Greater Viking. In the Three Months ended March 31,2016 report, the production of the Greater Viking was 19,500 boe/d of the total 77,000 boe/d or 25% of the total. Is it not true that the Greater Viking is the best of the Viking.