Canadian oil and gas producer Penn West Petroleum Ltd. on Wednesday cut its 2010 production outlook, dropped the lower range of its capital spending estimate and said it plans to swap properties with Crescent Point Energy Corp. to expand its ownership in light oil assets.
Production for the next year is projected between 167,000 to 175,000 barrels of oil equivalent per day, down from a Nov. 5 prediction of between 170,000 to 180,000 barrels of oil equivalent per day.
The company plans to spend between $750 million and $900 million on exploration and development projects in 2010. Earlier, it had estimated spending between $800 million to $900 million.
Penn West said it will sell its stake in the medium gravity Lower Shaunavon development in Saskatchewan in exchange for an interest in light oil resource plays in South Saskatchewan and West Central Alberta and $434 million in cash.
The company expects the asset exchange to close in early 2010.
Shares of Penn West rose 42 cents, or 2.4 percent, to $17.69 in morning trading.