CALGARY, March 12, 2015 /CNW/ – PENN WEST PETROLEUM LTD. (TSX – PWT;
NYSE – PWE) (“Penn West“, the “Company“, “we“, “us” or “our“) is pleased to announce its financial and operational results for the
fourth quarter and year ended December 31, 2014. All figures are in
Canadian dollars unless otherwise stated.

		Three months ended December 31					Year ended December 31
		2014		2013		% change	2014		2013		% change
Financial (millions, except per share amounts)
Gross revenues (1,2)		$	473	$	622	(24)	$	2,391	$	2,863	(16)
Funds flow (2)			137		203	(33)		935		985	(5)
	Basic per share (2)		0.28		0.42	(33)		1.89		2.03	(7)
	Diluted per share (2)		0.28		0.42	(33)		1.89		2.03	(7)
Net income (loss)			(1,772)		(675)	>(100)		(1,733)		(809)	>100
	Basic per share		(3.57)		(1.38)	>(100)		(3.51)		(1.67)	>100
	Diluted per share		(3.57)		(1.38)	>(100)		(3.51)		(1.67)	>100
Development capital expenditures (3)			247		176	40		732		704	4
Long-term debt at period-end		$	2,149	$	2,458	(13)	$	2,149	$	2,458	(13)
Dividends (millions)
Dividends paid (4)		$	69	$	68	1	$	275	$	458	(40)
DRIP			(15)		(14)	7		(58)		(95)	(39)
Dividends paid in cash		$	54	$	54	–	$	217	$	363	(40)
Operations
Daily production (average)
	Light oil and NGL (bbls/d)		51,624		64,273	(20)		54,374		69,640	(22)
	Heavy oil (bbls/d)		12,500		14,601	(14)		13,062		15,511	(16)
	Natural gas (mmcf/d)		198		275	(28)		219		300	(27)
Total production (boe/d) (5)			97,143		124,752	(22)		103,989		135,284	(23)
Average sales price
	Light oil and NGL (per bbl)	$	68.18	$	78.46	(13)	$	86.53	$	84.26	3
	Heavy oil (per bbl)		54.35		58.78	(8)		69.19		65.23	6
	Natural gas (per mcf)	$	3.94	$	3.51	12	$	4.78	$	3.30	45
Netback per boe
	Sales price	$	51.26	$	55.04	(7)	$	64.03	$	58.20	10
	Risk management gain (loss)		1.51		0.62	>100		(1.10)		0.16	>(100)
	Net sales price		52.77		55.66	(5)		62.93		58.36	8
	Royalties		(8.60)		(7.88)	9		(9.85)		(8.23)	20
	Operating expenses		(20.83)		(21.32)	(2)		(19.24)		(20.77)	(7)
	Transportation		(1.30)		(1.16)	12		(1.19)		(1.12)	6
	Netback (2)	$	22.04	$	25.30	(12)	$	32.65	$	28.24	16

(1)	Gross revenues include realized gains and losses on commodity contracts.
(2)	The terms “gross revenues”, “funds flow”, “funds flow per share-basic”, “funds flow per share-diluted” and “netback” are non-GAAP measures. Please refer to the “Calculation of Funds Flow” and “Non-GAAP Measures” advisory disclosures below.
(3)	Includes capital carried by partners.
(4)	Includes dividends paid in cash that are subsequently reinvested to purchase shares from treasury under the dividend reinvestment plan.
(5)	Please refer to the “Oil and Gas Information Advisory” section below for information regarding the term “boe”.

PRESIDENT’S MESSAGE

2014 proved to be a year of great accomplishments and challenges for
Penn West. With the first full calendar year of our long-term plan
behind us we are encouraged with the progress we have achieved. Our
biggest accomplishment is that we proved that this Company works, the
long-term plan works, and the people at Penn West can deliver. We
delivered full year average production volumes of 103,989 boe per day,
which was above the mid-point of full-year guidance, on capital
development spending of $732 million and generated $935 million of
funds flow. In 2014, the business essentially achieved the point of
sustainability in that the funds flow generated covered the development
capital expenditures plus the cash dividend payments. A substantial
improvement from prior year’s performance.

I am pleased to report that Penn West’s light oil development programs
delivered capital efficiencies of $21.98 per boe in 2014. This metric
represents the total development expenditures (drill, complete, equip
and tie-in costs) in the year divided by only those reserves that were
added from wells spud in the year. This is a strong result for Penn
West and is a more indicative and competitive measure for light oil
resource development in the western Canadian sedimentary basin.

We were able to achieve this result because of our unwavering commitment
to reduce costs and improve margins across the enterprise. I am proud
to say our cost saving initiatives have been achieved without
undermining the safety of our employees or the integrity and
reliability of our business.

Looking ahead, clearly we as an industry are facing a dramatically
different commodity price environment today relative to this time last
year. Operations aside, with crude oil prices ranging between
approximately US$43 per barrel and US$55 per barrel since the beginning
of 2015, there is now a clear focus on leverage and the balance sheet.
At year-end 2014, Penn West was well within its debt covenants, with a
senior debt to EBITDA ratio of 2.1 times against a limit of 3.0 times
and we were undrawn on our $1.7 billion credit facility. However, if
crude oil prices persist below US$50 per barrel in to the second half
of 2015, we do foresee potential challenges complying with our
covenants.

For that reason, we have actively been in negotiations with the lenders
under our syndicated bank facility and with the holders of our senior,
unsecured notes to ensure our financial flexibility and preserve and
enhance our ongoing liquidity.  We are pleased to report that we have
reached agreements in principle with our lenders and noteholders to
amend some of our covenants. We have also agreed to temporarily reduce
our quarterly dividend commencing in the first quarter of 2015 from the
previously announced $0.03 to $0.01 per share and to grant floating
charge security over all of our property. These amendments are expected
to become effective on or before April 15, 2015 and are subject to the
completion of definitive agreements. We believe that these amendments
are prudent and responsible measures designed to ensure Penn West’s
long-term financial sustainability. These amendments will also allow us
to carry on with the execution of our long-term strategy through this
cyclical down turn in oil prices. We remain focused on creating
long-term value for our shareholders.

We will continue to show discipline and focus with our capital program
and ensure our financial flexibility remains strong. I will reiterate
that it is our intention to revisit the second half capital programs
once we get to spring break-up. With the volatility in the commodity
market currently creating a high degree of uncertainty, we feel it
would be prudent to defer this decision until spring since it has no
immediate bearing on our spending plans today.

I am pleased that we have reduced outstanding debt by approximately $975
million since I arrived at Penn West. Further, Penn West is still
forecast to produce between 90,000 – 100,000 boe per day and generate
between $500 – $550 million in funds flow after the payment of
financing costs in 2015 (based on C$65/bbl oil, C$3.25/mcf gas and
$1.15 USD/CDN exchange rate assumptions). Penn West is a stronger more
resilient organization today because of the meaningful changes we
accomplished in 2014.

This is a business driven by excellence, continuous improvement and most
importantly our ability to extract the greatest margin from every
barrel we produce.  We remain committed to the defining pillars of our
long term strategy of debt reduction, profitable growth, and execution
and cost control, and we continue to make major strides in our effort
to redefine oil and gas excellence in western Canada. We remain devoted
to the continuous improvement of Penn West and are confident that our
strategy will create sustainable long-term value for our shareholders.
2014 has laid a strong foundation for our future growth.

I would also like to take this opportunity to welcome our newest board
members, Mr. Raymond D. Crossley and Mr. William A. Friley, to Penn
West. Ray brings extensive business experience and knowledge of the oil
and gas sector to Penn West and on March 11, 2015, was appointed as
Chair of the Audit Committee. Bill Friley brings over 35 years of
exploration and production business expertise to Penn West, is a
geologist by training, and has a deep knowledge of the western Canadian
sedimentary basin. On March 11, 2015, Bill was appointed as Chair of
the Operations and Reserves Committee. Both of these gentlemen will
further the dynamic and strength of our Board of Directors and our
Company.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

• Production in the fourth quarter averaged 97,143 boe per day. Full year
  average production of 103,989 boe per day was above the mid-point of
  guidance (101,000 to 106,000 boe per day).
• Funds flow for the fourth quarter of 2014 was $137 million ($0.28 per
  share – basic) compared to $203 million in the comparative period in
  2013. The decline is attributed to lower crude oil prices and lower
  production volumes due to asset dispositions which both contributed to
  lower revenues. Full year funds flow in 2014 of $935 million was only
  five percent lower than 2013 despite a 23 percent reduction in
  production volumes year over year.
• Development capital expenditures for the fourth quarter were $247
  million compared to $176 million in the comparative period in 2013. For
  the full year 2014, all planned development activities were completed
  on development capital expenditures of $732 million, approximately 11
  percent below guidance of $820 million, as cost reductions and
  operational efficiencies were realized throughout the year.
• Over 90 percent of 2014 net wells drilled were in the Company’s three
  core light oil areas.
• As at December 31, 2014, the Company was in compliance with all
  financial covenants under its lending agreements. Specifically, the
  reported senior debt to EBITDA ratio of 2:1 times at the end of the
  quarter was well within the covenant threshold of 3:1, and the senior
  debt to capitalization ratio of 28 percent at the end of the quarter
  was well within the covenant threshold of 50 percent.
• Realized a sustainability ratio of 102 percent, which measures uses of
  cash over sources of cash by the Company in the year. This result is
  better than the target of 110 percent for 2014.
• Successfully completed the divestiture of certain non-core assets
  located in south central Alberta for total proceeds of
  approximately $355 million in the fourth quarter, bringing the full
  year 2014 non-core divestitures proceeds to approximately $560 million.
  Since announcing the strategic long-term plan in late 2013, the Company
  has completed over $1 billion in asset dispositions, proceeds of which
  were applied against the Company’s bank facility.
• At December 31, 2014, the Company had $1.7 billion of credit capacity
  available as there were no drawings on its bank facility.
• The net loss in 2014 of $1,733 million was largely due to the non-cash
  goodwill impairment ($1,100 million) and property, plant and equipment
  impairment ($634 million) charges, recorded in the fourth quarter of
  2014, resulting from a decline in forecasted commodity prices and
  limited planned development capital in the non-core areas where the
  impairments were recorded. See “Net Loss Discussion” below for details.

PROACTIVE MEASURES TO ENSURE FINANCIAL FLEXIBILITY

Penn West currently has a senior, unsecured, revolving, syndicated bank
facility with an aggregate borrowing limit of $500 million expiring on
June 30, 2016 and $1.2 billion expiring on May 6, 2019. At December 31,
2014, the Company was completely undrawn on the combined capacity of
$1.7 billion.

As at December 31, 2014, the outstanding amount of the Company’s senior,
unsecured notes was $2.1 billion.

The syndicated bank facility and the senior, unsecured notes currently
contain financial covenants of Senior Debt to EBITDA (12 month
trailing) ratio of less than 3:1, Total Debt to EBITDA (12 month
trailing) ratio of less than 4:1, Senior Debt to Capitalization ratio
of less than 50 percent and total debt to capitalization ratio of less
than 55 percent. As at December 31, 2014, the Company was in compliance
with all of its financial covenants.

In light of the rapid decline in commodity prices, Penn West has
proactively been in negotiations with the lenders under its syndicated
bank facility and with the holders of its senior, unsecured notes to
ensure its financial flexibility. Effective March 10, 2015, the Company
reached agreements in principle with the lenders and the noteholders
to, among other things, amend its financial covenants as follows:

• the maximum Senior Debt to EBITDA and Total Debt to EBITDA ratio will be
  less than or equal to 5:1 for the period January 1 2015 through and
  including June 30, 2016, decreasing to less than or equal to 4.5:1 for
  the quarter ending September 30, 2016, and decreasing to less than or
  equal to 4:1 for the quarter ending December 31, 2016;
• the Senior Debt to EBITDA ratio will decrease to less than or equal to
  3:1 for the period from and after January 1, 2017; and
• the Total Debt to EBITDA ratio will remain at less than or equal to 4:1
  for all periods after December 31, 2016.

  The Company also agreed as follows:

• to temporarily grant floating charge security over all of its property
  in favor of the lenders and the noteholders on a pari passu basis,
  which security will be fully released upon the Company achieving both
  (i) a Senior Debt to EBITDA ratio of 3:1 or less for four consecutive
  quarters, and (ii) an investment grade rating on its senior unsecured
  debt;
• to cancel the $500 million tranche of the Company’s existing $1.7
  billion syndicated bank facility that was set to expire on June 30,
  2016. The remaining $1.2 billion tranche of the revolving bank facility
  remains available to the Company in accordance with the terms of the
  agreements governing such facility;
• to temporarily reduce its quarterly dividend commencing in the first
  quarter of 2015 from the previously announced $0.03 per share to $0.01
  per share until the earlier of (i) the Senior Debt to EBITDA being less
  than 3:1 for two consecutive quarters ending on or after September 30,
  2015, and (ii) March 30, 2017; and
• until March 30, 2017, to offer aggregate net proceeds up to $650 million
  received from all sales exchanges, lease transfers or other
  dispositions of its property to prepay at par any outstanding principal
  amounts owing to the noteholders, with corresponding pro rata amounts
  from such dispositions to be used by the Company to prepay any
  outstanding amounts drawn under its syndicated bank facility.

In December 2014, Penn West announced a reduction to its quarterly
dividend commencing in the first quarter of 2015 to $0.03 per share
from $0.14 per share. Penn West paid its fourth quarter 2014 dividend
of $0.14 per share totaling $70 million on January 15, 2015. As a
result of the further reduction to the Company’s quarterly dividend to
$0.01 per share, the first quarter 2015 dividend payable on April 15,
2015 will total $5 million. The Company’s dividend policy will continue
to be subject to review by the Board of Directors and each quarterly
dividend will remain subject to Board approval.

The amendments described above are expected to become effective on or
before April 15, 2015 and are subject to the execution and delivery of
definitive amending agreements in forms mutually satisfactory to the
parties thereto and to the satisfaction of conditions customary in
transactions of this nature.

In addition to the proactive measures described above, the Company
intends to continue to actively identify and evaluate hedging
opportunities in order to reduce its exposure to fluctuations in
commodity prices and protect its future cash flows and capital
programs.

RESERVES HIGHLIGHTS

• Replaced approximately 156 percent of 2014 total production through
  development adds of 58.0 mmboe of proved plus probable (“2P”) reserves,
  excluding the impact of economic factors and technical revisions.
• 2014 operated development cost of $21.98 per boe continues to reflect
  the capital efficiency of converting light oil resources into reserves
  and undeveloped reserves into developed reserves in our core areas.
• 2P reserves net present value discounted at 10 percent (before income
  taxes) at December 31, 2014 was approximately $7.0 billion ($14.00 per
  share) and included reductions of approximately $715 million related to
  economic factors (commodity price assumptions) and $650 million related
  to asset dispositions completed in 2014, which account for over 70
  percent of the reduction from the value of 2P reserves at December 31,
  2013.
• Company gross (Working Interest “WI”) 2P reserves were 561 mmboe at
  December 31, 2014 weighted approximately 73 percent to liquids which
  has increased from 70 percent a year ago.
• The Company’s reserves portfolio continues to become more focused with
  the Company’s top 25 assets representing approximately 79 percent of
  total 2P reserves, an increase from approximately 70 percent a year
  ago.

OPERATED DEVELOPMENT ACTIVITY

Fourth quarter development activities proceeded as expected in all core
areas on capital spending of approximately $181 million (approximately
73 percent of total capital in the quarter) and drilled a total of 62
(61.4 net) light oil wells with a success rate of 100 percent. Of
these, 33 (33.0 net) wells were drilled in the Viking, 27 (26.4 net)
wells were drilled in the Cardium and two (2.0 net) were drilled in the
Slave Point. Over 90 percent of all net wells drilled were in our core
light oil areas as detailed in Table 1 below.

The tables below summarize the Company’s fourth quarter and full year
2014 drilling, completions and tie-in activity:

Table 1: Fourth Quarter 2014 Core Area Light Oil Development Summary

		Number of Wells
	Drilled			Completed			On production
Business Unit	Gross		Net	Gross		Net	Gross		Net
Cardium	27.0		26.4	26.0		25.3	26.0		25.3
Viking	33.0		33.0	36.0		36.0	46.0		46.0
Slave Point	2.0		2.0	7.0		7.0	8.0		8.0
Total	62.0		61.4	69.0		68.3	80.0		79.3

Table 2: Full Year 2014 Core Area Light Oil Development Summary

	Number of Wells
	Drilled			Completed			On production
Business Unit	Gross		Net	Gross		Net	Gross		Net
Cardium	70.0		66.4	59.0		55.0	59.0		55.0
Viking	99.0		99.0	102.0		102.0	102.0		102.0
Slave Point	20.0		20.0	22.0		21.0	22.0		22.0
Total	189.0		185.4	182.0		178.0	183.0		179.0

PLAY UPDATES

Cardium

Penn West invested development capital of approximately $108 million in
the quarter and drilled 27 (26.4 net) wells and brought 26 (25.3 net)
wells on production. Of the wells drilled in the quarter, 15 (15.0 net)
were drilled in Willesden Green, six (5.4 net) in Pembina Cardium Unit
#9, and six (6.0 net) in J-Lease. Penn West continued to experience
reductions in costs and cycle times through the completion of the 2014
development program. The Company operated five rigs in the Cardium
during the quarter and completed its planned 67 net well program for
the year.

The Cardium team continued to deliver impressive all-in construction,
drill and completion (“CDC”) costs in the fourth quarter. In Willesden
Green, CDC costs averaged approximately $3.5 million per well. In the
Company’s Pembina area, CDC costs averaged under $3.0 million per well.
Drilling and completion techniques continued to evolve, utilizing on
average longer lateral sections and testing various frac densities and
tonnage. The expectation for 2015 is for per unit costs (meters drilled
and per frac stage) to decrease throughout the year. The Company
believes that these are more appropriate comparative measures across
different regions of the Cardium and across different operators versus
absolute per well costs.

Penn West’s core Cardium land position spans over 600,000 net acres. The
statistical approach we bring to the Cardium play concentrates efforts
on maximizing the number of completions in focused areas, with a
current emphasis on proximity to existing infrastructure. Certain of
the Cardium programs in the fourth quarter were impacted by completions
in lower pressure areas of the reservoir in our southern acreage
positions and contributed to lower average volumes in the quarter. We
will continue to monitor these programs for longer-term performance and
have now incorporated these learnings in to our development programs
for 2015. These results highlight the importance of ongoing and
integrated enhanced oil recovery (“EOR”) schemes in mature conventional
light oil reservoirs.

In 2014, water flood activities continued in Willesden Green and Pembina
and are performing in-line with expectations. Over time, the Company
expects that these programs will mitigate natural declines and increase
the ultimate recovery of light oil resource in our Cardium areas as
reservoir pressures are optimized.

Development activities remain on track for the first quarter of 2015
with a planned drilling program of 19.5 net wells. Development capital
spending, including EOR capital, is forecast to be approximately $117
million in the quarter. The Company expects learnings from our fourth
quarter 2014 program to impact second half 2015 programs.

Viking

During the fourth quarter of 2014, approximately $49 million of capital
was invested in development activities in the Viking area. Penn West
had one rig operating and drilled 33 wells in the quarter. In total for
2014, the Company drilled 99 wells and brought 102 wells on production.

The Company continues to target average per well CDC costs in the Viking
area of below $800,000 on a sustainable basis. Per well CDC costs in
the quarter averaged approximately $780,000 compared to the Company’s
average in the first half of 2014 of $840,000.

The first quarter of 2015 planned drilling program consists of 23 net
wells. Development capital spending, including EOR capital, is forecast
to be approximately $32 million in the quarter. Unseasonably warm
weather in the Dodsland area in early February led to road bans which
impacted certain development activities. However, Penn West is on track
to recover from these delays and expect to be back on target prior to
break-up.

Slave Point

Penn West invested development capital of $24 million in the Slave Point
area, completing its planned program for the year, drilling 20 wells
and bringing 22 wells on production in the quarter. The 2014 program
tested various well design and completion techniques and proof of
concept work will be conducted over the course of 2015 as production
results help confirm economics. Development activity in the first
quarter of 2015 is limited with the drilling and casing of two wells
forecast in Otter and Red Earth to retain lands. These wells will be
completed and tied-in at a later time as economic conditions improve.

Duvernay

The 7-16 horizontal well targeting the Duvernay was brought on stream as
planned in early December.  Drilling, completion and the tie in of this
exploratory well was executed safely and efficiently. Technical
evaluation and monitoring for longer-term performance from the 7-16
well will continue in to 2015. In consideration of the lower commodity
price environment, it is unlikely that Penn West will proceed with a
formal sales process for its Duvernay acreage in 2015. With the wells
drilled in 2014 and select vertical stratification test wells planned
for 2015, the core acreage position in the Duvernay is secured for the
next five years. This remains a valuable asset for Penn West.

DRILLING STATISTICS

	Three months ended December 31				Year ended December 31
	2014		2013		2014		2013
	Gross	Net	Gross	Net	Gross	Net	Gross	Net
Oil	73	66	67	53	245	200	274	201
Natural gas	2	1	3	2	9	3	6	4
Dry	–	–	1	1	–	–	1	1
	75	67	71	56	254	203	281	206
Stratigraphic and service	3	1	5	1	10	2	41	18
Total	78	68	76	57	264	205	322	224
Success rate (1)		100%		98%		100%		99%

(1)	Success rate is calculated excluding stratigraphic and service wells.

CAPITAL EXPENDITURES

(millions)	Three months ended December 31				Year ended December 31
	2014		2013		2014		2013
Land acquisition and retention	$	–	$	–	$	2	$	4
Drilling and completions		164		82		509		419
Facilities and well equipping		97		106		232		344
Geological and geophysical		–		1		7		10
Corporate		1		3		11		10
Capital carried by partners		(15)		(16)		(29)		(83)
Development capital expenditures (1)		247		176		732		704
Property acquisitions (dispositions), net		(345)		(477)		(560)		(540)
Total expenditures	$	(98)	$	(301)	$	172	$	164

(1)	Development capital includes costs related to Property, Plant and Equipment and Exploration and Evaluation activities.

In 2014, the Company’s development activities were focused on its
light-oil plays in the Cardium, Viking and Slave Point, consistent with
its long-term plan. For 2014, development capital expenditures were
below Penn West’s forecast of $820 million as it focused on execution
and cost control and achieved success from implementing these
strategies.

LAND

	As at December 31
	Producing			Non-producing
	2014	2013	% change	2014	2013	% change
Gross acres (000s)	3,965	4,836	(18)	2,442	2,842	(14)
Net acres (000s)	2,749	3,308	(17)	1,702	1,957	(13)
Average working interest	69%	68%	1	70%	69%	1

NET LOSS DISCUSSION

During the fourth quarter of 2014, Penn West recorded a non-cash
goodwill impairment of $1,100 million and a non-cash PP&E impairment
charge of $634 million resulting from a decline in forecasted commodity
prices and limited planned development capital in the non-core areas
where the impairments were recorded.

Penn West’s goodwill balance is primarily associated with a group of
CGUs which represent key light-oil properties in the Cardium, Slave
Point and Viking areas. The Company completed a goodwill impairment
test for the balance related to the group of CGUs at December 31, 2014
and the carrying value exceeded the recoverable amount, thus an
impairment was recorded. The recoverable amount was determined based on
the fair value less cost to sell method. The key assumptions used in
determining the recoverable amount include the future cash flows using
reserve and resource forecasts, forecasted commodity prices, discount
rates, foreign exchange rates, inflation rates and future development
costs estimated by independent reserve engineers and other internal
estimates based on historical experiences and trends.

Penn West’s PP&E impairment charge primarily related to certain
properties in the Fort St. John area of northeastern British Columbia,
in the Swan Hills area of Alberta and in certain properties in
Manitoba. This was mainly due to lower commodity price forecasts
compared to the prior year and minimal future development capital
planned in these areas as they are non-core in nature. The recoverable
amounts used in the impairment tests, based on fair value less cost to
sell, related to these CGUs were calculated using proved plus probable
reserves and incremental development drilling locations at a pre-tax
discount rate of 10 percent. Impairment losses related to PP&E can be
reversed in future periods if the estimated recoverable amount of the
asset exceeds the carrying value.

COMMON SHARE DATA

		Three months ended December 31			Year ended December 31
(millions of shares)		2014	2013	% change	2014	2013	% change
Weighted average
	Basic	497.0	489.5	2	493.7	485.8	2
	Diluted	497.0	489.5	2	493.7	485.8	2
	Outstanding as at December 31				497.3	489.1	2

RESERVES DATA

Our reserves continue to reflect a high percentage of oil and liquids at
73 percent (2013 – 70 percent) and developed reserves continue to
reflect a high percentage of proved reserves. Of total proved reserves,
71 percent were developed at December 31, 2014 (2013 – 75 percent). At
December 31, 2014, total proved reserves as a percentage of proved plus
probable reserves were 66 percent (2013 – 67 percent). In 2014, we
engaged Sproule Associates Limited (“SAL”), an independent, qualified
engineering firm, to evaluate approximately 75 percent and to audit
approximately 25 percent of our proved and proved plus probable
reserves, based on the net present value of future net revenue of such
reserves discounted at 10 percent.

The reserves estimates have been calculated in compliance with National
Instrument 51-101 Standards of Disclosure for Oil and Gas Activities
(“NI 51-101”). Under NI 51-101, proved reserves estimates are defined
as having a high degree of certainty to be recoverable with a targeted
90 percent probability in aggregate that actual reserves recovered over
time will equal or exceed proved reserve estimates. For proved plus
probable reserves under NI 51-101, the targeted probability is an equal
(50 percent) likelihood that the actual reserves to be recovered will
be equal to or greater than the proved plus probable reserves estimate.
The reserves estimates set forth below are estimates only and there is
no guarantee that the estimated reserves will be recovered. Actual
reserves may be greater than or less than the estimates provided
herein.

a)     Company Gross (WI) Reserves using forecast prices and costs

Penn West as at		Heavy Oil & Bitumen	Natural Gas	Natural Gas Liquids
December 31, 2014
					Barrels of
Reserve	Light & Medium Oil				Oil Equivalent
Estimates Category (1)(2)	(mmbbl)	(mmbbl)	(bcf)	(mmbbl)	(mmboe)
Proved
Developed producing	131	35	420	18	254
Developed non-producing	3	1	19	1	8
Undeveloped	67	3	162	8	106
Total Proved	202	39	602	27	368
Probable	96	38	289	12	194
Total Proved plus Probable	298	77	891	38	561

(1)	Company gross (WI) reserves are before royalty burdens and exclude royalty interests.
(2)	Columns may not add due to rounding.

b)     Net after Royalty Interest Reserves using forecast prices and costs

Penn West as at		Heavy Oil & Bitumen	Natural Gas	Natural Gas Liquids
December 31, 2014
					Barrels of
Reserve	Light & Medium Oil				Oil Equivalent
Estimates Category (1)(2)	(mmbbl)	(mmbbl)	(bcf)	(mmbbl)	(mmboe)
Proved
Developed producing	115	32	374	13	222
Developed non-producing	3	1	16	0	7
Undeveloped	60	3	144	6	93
Total Proved	177	35	534	19	321
Probable	81	34	254	9	166
Total Proved plus Probable	258	70	787	28	487

(1)	Net after royalty reserves are working interest reserves including royalty interests and deducting royalty burdens.
(2)	Columns may not add due to rounding.

Additional reserve disclosures, as required under NI 51-101, will be
contained in our Annual Information Form that will be filed on SEDAR at
www.sedar.com.

c)  Reconciliation of Company Gross (WI) Reserves using forecast prices
and costs

	Light & Medium Oil			Heavy Oil & Bitumen
		(mmbbl)		(mmbbl)
Reconciliation Items (1)	Proved	Probable	Proved plus probable	Proved	Probable	Proved plus probable
December 31, 2013	218	96	314	42	40	82
Extensions	–	–	–	–	–	–
Infill Drilling	21	18	39	–	–	–
Improved Recovery	–	–	–	–	–	–
Technical Revisions	(8)	(14)	(22)	2	(2)	1
Acquisitions	1	–	1	–	–	–
Dispositions	(11)	(5)	(16)	(1)	–	(1)
Economic Factors	(1)	1	–	–	–	–
Production	(17)	–	(17)	(5)	–	(5)
December 31, 2014	202	96	298	39	38	77
	Natural Gas Liquids			Natural Gas
		(mmbbl)		(bcf)
Reconciliation Items (1)	Proved	Probable	Proved plus probable	Proved	Probable	Proved plus probable
December 31, 2013	30	13	42	757	366	1,123
Extensions	–	–	–	–	–	–
Infill Drilling	3	2	4	53	32	85
Improved Recovery	–	–	–	2	–	2
Technical Revisions	2	(1)	1	30	(52)	(22)
Acquisitions	–	–	–	1	–	2
Dispositions	(5)	(2)	(7)	(146)	(60)	(206)
Economic Factors	–	–	–	(16)	1	(15)
Production	(3)	–	(3)	(80)	–	(80)
December 31, 2014	27	12	38	602	289	891
	Barrels of Oil Equivalent
		(mmboe)
Reconciliation Items (1)	Proved	Probable	Proved plus probable
December 31, 2013	415	209	625
Extensions	–	–	–
Infill Drilling	33	25	58
Improved Recovery	1	–	1
Technical Revisions	1	(25)	(24)
Acquisitions	1	–	1
Dispositions	(41)	(18)	(59)
Economic Factors	(5)	1	(3)
Production	(38)	–	(38)
December 31, 2014	368	194	561

(1)	Columns may not add due to rounding.

The focused drilling program during 2014 continued to deliver
significant drilling and completions cost reductions.  The success of
this program, and the subsequent ability to book infill locations has
offset the gas weighted dispositions that occurred primarily in the
second half of 2014.

d)  Net present value of future net revenue using forecast prices and
costs (millions) at December 31, 2014

	Net present value of future net revenue before income taxes
	(discounted @)
Reserve Category (1)		0%		5%		10%		15%		20%
Proved
Developed producing	$	8,504	$	5,741	$	4,372	$	3,558	$	3,017
Developed non-producing		186		133		103		84		70
Undeveloped		2,772		1,350		668		289		57
Total proved	$	11,462	$	7,225	$	5,143	$	3,930	$	3,144
Probable		6,692		3,253		1,822		1,094		676
Total proved plus probable	$	18,154	$	10,478	$	6,965	$	5,024	$	3,820

(1)	Columns may not add due to rounding.

Net present values take into account wellbore abandonment liabilities
and are based on the price assumptions that are contained in the
following table. It should not be assumed that the estimated future net
revenues represent fair market value of the reserves. There is no
assurance that the forecast price and cost assumptions will be attained
and variances could be material.

e)  Summary of pricing and inflation rate assumptions using forecast
prices and costs as of December 31, 2014 

		Oil
		Canadian(1)	Western
	WTI	Light Sweet	Canada	Cromer	Natural Gas
	Cushing ,	Crude	Select	LSB	AECO-C	Edmonton	Edmonton	Inflation	Exchange
Year	Oklahoma	40° API	20.5 API	35° API	Spot	Butane	Propane	Rate	Rate
	($US/bbl)	($Cdn/bbl)	($Cdn/bbl)	($Cdn/bbl)	($Cdn/MMbtu)	($Cdn/bbl)	($Cdn/bbl)	(%/Yr)	($US/$Cdn)
Historical
2010	79.43	77.80	67.21	76.57	4.16	57.99	44.45	1.2	0.97
2011	95.00	95.16	77.09	89.68	3.72	70.93	50.17	1.6	1.01
2012	94.19	86.57	73.08	84.42	2.43	64.48	47.40	1.3	1.00
2013	97.98	93.24	73.78	91.59	3.13	69.88	38.37	0.8	0.97
2014	93.00	94.18	82.04	93.26	4.50	68.02	44.42	1.4	0.91
Forecast
2015	65.00	70.35	60.50	69.85	3.32	50.34	34.77	1.5	0.85
2016	80.00	87.36	75.13	86.86	3.71	62.51	43.17	1.5	0.87
2017	90.00	98.28	84.52	97.78	3.90	70.32	48.57	1.5	0.87
2018	91.35	99.75	85.79	99.25	4.47	71.37	49.30	1.5	0.87
2019	92.72	101.25	87.07	100.75	5.05	72.44	50.04	1.5	0.87
2020	94.11	103.85	89.31	103.35	5.13	74.31	51.32	1.5	0.87
2021	95.52	105.40	90.65	104.90	5.22	75.42	52.09	1.5	0.87
2022	96.96	106.99	92.01	106.49	5.31	76.55	52.87	1.5	0.87
2023	98.41	108.59	93.39	108.09	5.40	77.70	53.67	1.5	0.87
2024	99.89	110.22	94.79	109.72	5.49	78.87	54.47	1.5	0.87
2025	101.38	111.87	96.21	111.37	5.58	80.05	55.29	1.5 (2)	0.87

(1)	Edmonton Par prior to 2014.
(2)	Inflation Rate continues at 1.5% after 2025.

f) Finding and development costs (“F&D costs”)

		Year ended December 31
		2014		2013		2012			3-Year average
F&D costs including FDC (1)
	F&D costs per boe – proved plus probable	$	63.33	$	7.12	$	25.50	$	27.09
	F&D costs per boe – proved	$	44.59	$	14.04	$	30.96	$	28.05
F&D costs excluding FDC (2)
	F&D costs per boe – proved plus probable	$	22.77	$	14.81	$	17.48	$	17.41
	F&D costs per boe – proved	$	24.32	$	15.53	$	26.69	$	22.21

(1)	The calculation of F&D includes the change in FDC and excludes the effects of acquisitions and dispositions.
(2)	The calculation of F&D excludes the change in FDC and excludes the effects of acquisitions and dispositions.

Capital expenditures for 2014 have been reduced by $29 million related
to joint venture carried capital (2013 – $83 million).

F&D costs are calculated in accordance with NI 51-101, which include the
change in future development cost (“FDC”), on a proved and proved plus
probable basis. Given the impact to the calculated F&D costs from 2014
negative technical revisions and changes to booked FDC, management
believes it prudent to consider the three-year average F&D costs as a
more representative metric. Furthermore, Penn West’s 2014 operated
development cost, defined as drill, complete, equip, and tie-in program
capital divided by associated reserves, was $21.98 per boe.  This is
consistent with our independent 2014 reserves report prepared by SAL
that carries an average 2P FDC per boe of $19.62 and our long-term plan
development cost forecast of just under $19 per boe. For comparative
purposes we also disclose F&D costs excluding the change in FDC.

The aggregate of the exploration and development costs incurred in the
most recent financial year and the change during that year in estimated
future development costs generally will not reflect total finding and
development costs related to reserves additions for that year.

g)  Future development costs using forecast prices and costs (millions)

	At December 31, 2014
	Proved Future		Proved plus Probable
Year	Development Costs		Future Development Costs
2015	$	672	$	971
2016		624		1,078
2017		760		1,068
2018		376		793
2019		131		436
2020 and subsequent		112		279
Undiscounted total	$	2,675	$	4,626
Discounted @ 10%/yr	$	2,204	$	3,698
At December 31, 2013
Undiscounted total	$	2,249	$	3,506
Discounted @10%/yr	$	1,941	$	2,958

Changes in forecast FDC are reviewed annually by our independent
reserves evaluator/auditor and take into account capital performance to
date and their assessment of the costs to develop the undeveloped
reserves. Future development capital for total proved plus probable
reserves increased to $4.6 billion at year-end 2014 relative to $3.5
billion at year-end 2013. The increase in FDC in 2014 was predominantly
the result of newly booked undeveloped reserves locations.

Other items that have impacted the change in FDC in 2014 are largely the
result of advancements and changes in programs in the Company’s Cardium
and Big Hill business units which have incremental costs associated
without corresponding reserves, such as shifting to longer lateral
wells (1.5 and 2.0 mile lateral wells) in the Cardium, waterflood
programs requiring pattern realignment and additional infill drilling
activity, and shifting to  multi-leg lateral wells versus dual leg
wells at the Peace River Oil Partnership property in the Big Hill
business unit.

In addition, cost reductions due to the currently low commodity price
cycle are not reflected in the reserve book at December 31, 2014.
Management anticipates these cost reductions, as well as reductions in
FDC due to activity efficiency gains, may be included in the reserve
book in the future.

OUTLOOK

This outlook section is included to provide shareholders with
information about the Company’s expectations as at March 11, 2015 for
production, funds flow and capital budget in 2015 and readers are
cautioned that the information may not be appropriate for any other
purpose. This information constitutes forward-looking information.
Readers should note the assumptions, risks and discussion under
“Forward-Looking Statements” and are cautioned that numerous factors
could potentially impact our actual capital expenditures and production
and funds flow performance for 2015, including fluctuations in
commodity prices and the Company’s ongoing asset disposition program.

There have been no changes to the Company’s guidance for its 2015
forecast average production of 90,000 to 100,000 boe per day and
forecast funds flow of $500 million to $550 million, as originally
disclosed in its December 17, 2014 press release. The 2015 Capital
Budget also continues to be $625 million as outlined in the Company’s
December 17, 2014 release.

The press release referenced above is available on the Company’s website
at www.pennwest.com, on SEDAR at www.sedar.com, and on EDGAR at www.sec.gov.

Non-GAAP Measures

Certain financial measures including funds flow, funds flow per
share-basic, funds flow per share-diluted, netback and gross revenues
included in this press release do not have a standardized meaning
prescribed by IFRS and therefore are considered non-GAAP measures;
accordingly, they may not be comparable to similar measures provided by
other issuers. Funds flow is cash flow from operating activities before
changes in non-cash working capital and decommissioning expenditures.
Funds flow is used to assess the Company’s ability to fund dividend and
planned capital programs. See “Calculation of Funds Flow” below for a
reconciliation of funds flow to its nearest measure prescribed by IFRS.
Netback is the per unit of production amount of revenue less royalties,
operating expenses, transportation and realized risk management gains
and losses, and is used in capital allocation decisions and to
economically rank projects. See the table at the beginning of this
press release for a calculation of the Company’s netbacks. Gross
revenue is total revenues including realized risk management gains and
losses and is used to assess the cash realizations on commodity sales.

Operational Measures

Certain operational measures including sustainability ratio included in
this press release do not have an equivalent definition prescribed by
IFRS. Such operational measures may not be comparable to similar
measures provided by other issuers. Sustainability ratio is a
comparison of a company’s cash outflows (capital investment and
dividends paid less DRIP proceeds) to its cash inflows (funds flow) and
is used by the Company to assess the appropriateness of its dividend
levels and the long-term ability to fund its development plans.
Sustainability ratio is calculated using the development capital plus
dividends paid less DRIP proceeds divided by funds flow. Capital
efficiency is a comparison of our reserve additions to our development
capital expenditures and assesses the cost of finding a boe. Operated
development cost (per boe) is an internal measure used to assess our
capital efficiency of converting resources into reserves and
undeveloped reserves into developed reserves. It is calculated as
operated development capital divided by reserves developed. Reserves
developed is the sum of new reserve additions and reserves converted
from undeveloped reserves to developed reserves from targeted operated
development programs.

Calculation of Funds Flow

(millions, except per share amounts)	Three months ended December 31				Year ended December 31
	2014		2013		2014		2013
Cash flow from operating activities	$	120	$	314	$	848	$	968
Change in non-cash working capital		(6)		(127)		32		(49)
Decommissioning expenditures		23		16		55		66
Funds flow	$	137	$	203	$	935	$	985
Basic per share	$	0.28	$	0.42	$	1.89	$	2.03
Diluted per share	$	0.28	$	0.42	$	1.89	$	2.03

Oil and Gas Information Advisory

Barrels of oil equivalent (“boe”) may be misleading, particularly if
used in isolation. A boe conversion ratio of six thousand cubic feet of
natural gas to one barrel of crude oil is based on an energy
equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead. Given that
the value ratio based on the current price of crude oil as compared to
natural gas is significantly different from the energy equivalency
conversion ratio of 6:1, utilizing a conversion on a 6:1 basis is
misleading as an indication of value.

Forward-Looking Statements

Certain statements contained in this document constitute forward-looking
statements or information (collectively “forward-looking statements”)
within the meaning of the “safe harbour” provisions of applicable
securities legislation. In particular, this document contains
forward-looking statements pertaining to, without limitation, the
following: under “President’s Message”, our belief that we will
potentially have challenges complying with our covenants if crude oil
prices persist at below US$50 per barrel, our expectation that we will
enter into amendments to the agreements governing our syndicated bank
facility and senior, unsecured notes, on substantially the terms of the
agreements in principle made with the respective lenders and
noteholders, with such amendments expected to become effective on or
before April 15, 2015, our belief that such amendments will allow us to
carry on with the execution of our long-term strategy, our belief that
the down turn in oil prices is cyclical, our intention to remain
focused on creating long-term value for our shareholders, our intention
to continue to show discipline and focus with our capital program and
ensure our financial flexibility remains strong, our intention to
revisit the second half of the capital program in the spring, and our
belief that we have laid a strong foundation for our future growth;
under “Proactive Measures to Ensure Financial Flexibility”, details of
certain amendments to the financial covenants and other agreements that
have been agreed to in principle with the lenders under our syndicated
bank facility and with the holders of our senior, unsecured notes, and
our plan to continue to subject our dividend policy and quarterly
dividend to Board of Directors’ review and approval; under “Play
Updates”, all matters pertaining to our planned operations in 2015 and
beyond, including (i) in respect of our Cardium play, our expectation
that per unit costs (meters drilled and per frac stage) will decrease
throughout 2015 and our forecast that development capital spending,
including EOR capital, will be approximately $117 million in the first
quarter, (ii) in respect of our Viking play, our target to average per
well CDC costs in the Viking area of below $800,000 on a sustainable
basis and our forecast that development capital spending, including EOR
capital, will be approximately $32 million in the first quarter, (iii)
in respect of our Slave Point play, our intention to limit development
activity in the first quarter of 2015 to the drilling and casing of two
wells needed to retain lands and to complete and tie-in these wells at
a later time as economic conditions improve, and (iv) in respect of our
Duvernay play, our expectation that the technical evaluation and
monitoring for longer-term performance from the 7-16 well will continue
in 2015, our belief that it is unlikely that Penn West will proceed
with a formal sales process for its Duvernay acreage in 2015, and our
belief that the core acreage position in the Duvernay is secured for
the next five years; under “Reserves Data”, our anticipation that the
cost reductions due to the currently low commodity price cycle, as well
as reductions in FDC due to activity efficiency gains, may be included
in the reserve book in the future; and under “Outlook”, our forecast
average daily production volumes for 2015, our forecast funds flow for
2015 and the 2015 Capital Budget.

With respect to forward-looking statements contained in this document,
we have made assumptions regarding, among other things: 2015 prices of
C$65.00 per barrel of Canadian light sweet oil and C$3.25 per mcf AECO
gas, and a C$/US$ foreign exchange rate of $1.15; that we do not
dispose of any material producing properties; that the current
commodity price and foreign exchange environment will continue or
improve; that we enter into amendments to the agreements governing our
syndicated bank facility and senior, unsecured notes on substantially
the terms described herein on or before April 15, 2015; future capital
expenditure levels; future crude oil, natural gas liquids and natural
gas prices and differentials between light, medium and heavy oil prices
and Canadian, WTI and world oil and natural gas prices; future crude
oil, natural gas liquids and natural gas production levels; future
exchange rates and interest rates; future debt levels; and the amount
of future cash dividends that we intend to pay.

Although we believe that the expectations reflected in the
forward-looking statements contained in this document, and the
assumptions on which such forward-looking statements are made, are
reasonable, there can be no assurance that such expectations will prove
to be correct. Readers are cautioned not to place undue reliance on
forward-looking statements included in this document, as there can be
no assurance that the plans, intentions or expectations upon which the
forward-looking statements are based will occur. By their nature,
forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties that contribute to the possibility that
the forward-looking statements contained herein will not be correct,
which may cause our actual performance and financial results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied by such
forward-looking statements. These risks and uncertainties include,
among other things: the possibility that we will not be able to
continue to successfully execute our long-term plan in part or in full,
and the possibility that some or all of the benefits that we anticipate
will accrue to our Company and our securityholders as a result of the
successful execution of such plans do not materialize; the possibility
that we are unable to execute some or all of our ongoing asset
disposition program on favourable terms or at all; the possibility that
we are unable to enter into amendments to the agreements governing our
syndicated bank facility and senior, unsecured notes on the terms
described herein or at all and that as a result we breach one or more
of the financial covenants in such agreements and default thereunder;
general economic and political conditions in Canada, the U.S. and
globally, and in particular, the effect that those conditions have on
commodity prices and our access to capital; industry conditions,
including fluctuations in the price of crude oil, natural gas liquids
and natural gas, price differentials for crude oil and natural gas
produced in Canada as compared to other markets, and transportation
restrictions, including pipeline and railway capacity constraints;
fluctuations in foreign exchange or interest rates; unanticipated
operating events or environmental events that can reduce production or
cause production to be shut-in or delayed (including extreme cold
during winter months, wild fires and flooding); and the other factors
described under “Risk Factors” in our Annual Information Form and
described in our public filings, available in Canada at www.sedar.com
and in the United States at www.sec.gov. Readers are cautioned that
this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document speak only as
of the date of this document. Except as expressly required by
applicable securities laws, we do not undertake any obligation to
publicly update any forward-looking statements. The forward-looking
statements contained in this document are expressly qualified by this
cautionary statement.

Penn West Petroleum Ltd.
Consolidated Balance Sheets
(CAD millions, unaudited)			December 31, 2014		December 31, 2013
Assets
Current
	Cash		$	67	$	–
	Accounts receivable			182		265
	Other			46		57
	Deferred funding assets			84		139
	Risk management			31		2
				410		463
Non-current
	Deferred funding assets			195		184
	Exploration and evaluation assets			505		645
	Property, plant and equipment			7,906		9,075
	Goodwill			734		1,912
	Risk management			102		50
				9,442		11,866
Total assets			$	9,852	$	12,329
Liabilities and Shareholders’ Equity
Current
	Accounts payable and accrued liabilities		$	529	$	598
	Dividends payable			70		68
	Current portion of long-term debt			283		64
	Decommissioning liability			52		75
	Risk management			9		24
				943		829
Non-current
	Long-term debt			1,866		2,394
	Decommissioning liability			533		528
	Risk management			10		16
	Deferred tax liability			914		1,040
	Other non-current liabilities			4		9
				4,270		4,816
Shareholders’ equity
	Shareholders’ capital			8,983		8,913
	Other reserves			89		80
	Deficit			(3,490)		(1,480)
				5,582		7,513
Total liabilities and shareholders’ equity			$	9,852	$	12,329

Penn West Petroleum Ltd.
Consolidated Statements of Income (Loss)
			Three months ended December 31					Year ended December 31
(CAD millions, except per share amounts, unaudited)				2014		2013		2014		2013
	Oil and natural gas sales			$	460	$	614	$	2,433	$	2,855
	Royalties				(77)		(90)		(374)		(406)
					383		524		2,059		2,449
	Risk management gain (loss)
		Realized			13		7		(42)		8
		Unrealized			26		(13)		51		(94)
					422		518		2,068		2,363
Expenses
	Operating				185		244		729		1,025
	Transportation				11		13		45		55
	General and administrative				27		34		131		160
	Restructuring				5		–		17		38
	Share-based compensation				(6)		2		12		32
	Depletion, depreciation and impairment				829		901		1,384		1,693
	Impairment of goodwill				1,100		48		1,100		48
	Loss on dispositions				142		14		190		5
	Exploration and evaluation				–		44		16		44
	Unrealized risk management gain				(19)		(21)		(51)		(48)
	Unrealized foreign exchange loss				63		63		152		126
	Financing				40		45		158		184
	Accretion				9		10		36		43
					2,386		1,397		3,919		3,405
Loss before taxes					(1,964)		(879)		(1,851)		(1,042)
	Deferred tax recovery				(192)		(204)		(118)		(233)
Net and comprehensive loss				$	(1,772)	$	(675)	$	(1,733)	$	(809)
Net loss per share
	Basic			$	(3.57)	$	(1.38)	$	(3.51)	$	(1.67)
	Diluted			$	(3.57)	$	(1.38)	$	(3.51)	$	(1.67)
Weighted average shares outstanding (millions)
	Basic				497.0		489.5		493.7		485.8
	Diluted				497.0		489.5		493.7		485.8

Penn West Petroleum Ltd.
Consolidated Statements of Cash Flows
		Three months ended December 31					Year ended December 31
(CAD millions, unaudited)			2014		2013		2014		2013
Operating activities
	Net loss		$	(1,772)	$	(675)	$	(1,733)	$	(809)
	Depletion, depreciation and impairment			829		901		1,384		1,693
	Impairment of goodwill			1,100		48		1,100		48
	Loss on dispositions			142		14		190		5
	Exploration and evaluation			–		44		16		44
	Accretion			9		10		36		43
	Deferred tax recovery			(192)		(197)		(118)		(226)
	Share-based compensation			3		3		10		15
	Unrealized risk management gain			(45)		(8)		(102)		46
	Unrealized foreign exchange loss			63		63		152		126
	Decommissioning expenditures			(23)		(16)		(55)		(66)
	Change in non-cash working capital			6		127		(32)		49
				120		314		848		968
Investing activities
	Capital expenditures			(247)		(176)		(732)		(704)
	Property dispositions (acquisitions), net			345		477		560		540
	Change in non-cash working capital			10		40		59		(100)
				108		341		(113)		(264)
Financing activities
	Decrease in bank loan			(107)		(608)		(403)		(351)
	Repayment of senior notes			–		–		(59)		(5)
	Issue of equity			–		4		11		12
	Dividends paid			(54)		(51)		(217)		(360)
				(161)		(655)		(668)		(704)
Change in cash				67		–		67		–
Cash, beginning of period				–		–		–		–
Cash, end of period			$	67	$	–	$	67	$	–

Penn West Petroleum Ltd.
Statements of Changes in Shareholders’ Equity
(CAD millions, unaudited)		Shareholders’ Capital		Other Reserves		Deficit		Total
Balance at January 1, 2014		$	8,913	$	80	$	(1,480)	$	7,513
Net and comprehensive loss			–		–		(1,733)		(1,733)
Share-based compensation			–		10		–		10
Issued on exercise of options and share rights			12		(1)		–		11
Issued to dividend reinvestment plan			58		–		–		58
Dividends declared			–		–		(277)		(277)
Balance at December 31, 2014		$	8,983	$	89	$	(3,490)	$	5,582
		Shareholders’ Capital		Other Reserves		Deficit		Total
Balance at January 1, 2013		$	8,774	$	97	$	(277)	$	8,594
Net and comprehensive income			–		–		(809)		(809)
Share-based compensation			–		15		–		15
Issued on exercise of options and share rights			44		(32)		–		12
Issued to dividend reinvestment plan			95		–		–		95
Dividends declared			–		–		(394)		(394)
Balance at December 31, 2013		$	8,913	$	80	$	(1,480)	$	7,513

Notes to the Consolidated Financial Statements

(All tabular amounts are in CAD millions except numbers of common
shares, per share amounts, percentages and various figures in Note 11)

1. Structure of Penn West

Penn West Petroleum Ltd. (“Penn West” or the “Company”) is a senior
exploration and production company and is governed by the laws of the
Province of Alberta, Canada. The Company operates in one segment, to
explore for, develop and hold interests in oil and natural gas
properties and related production infrastructure in the Western Canada
Sedimentary Basin directly and through investments in securities of
subsidiaries holding such interests. Penn West’s portfolio of assets is
managed at an enterprise level, rather than by separate operating
segments or business units. The Company assesses its financial
performance at the enterprise level and resource allocation decisions
are made on a project basis across Penn West’s portfolio of assets,
without regard to the geographic location of projects. Penn West owns the petroleum and natural gas assets or 100 percent of
the equity, directly or indirectly, of the entities that carry on the
remainder of the oil and natural gas business of Penn West, except for
an unincorporated joint arrangement (the “Peace River Oil Partnership”)
in which Penn West’s wholly owned subsidiaries hold a 55 percent
interest.

Penn West operates under the trade names of Penn West and Penn West
Exploration.

2. Basis of presentation and statement of compliance

a) Statement of Compliance

These annual consolidated financial statements are prepared in
compliance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board.

The annual consolidated financial statements have been prepared on a
historical cost basis, except risk management assets and liabilities
which are recorded at fair value as discussed in Note 11.

The annual consolidated financial statements of the Company for the year
ended December 31, 2014 were approved for issuance by the Board of
Directors on March 11, 2015.

b) Basis of Presentation

The annual consolidated financial statements include the accounts of
Penn West, its wholly owned subsidiaries and its proportionate interest
in partnerships. Results from acquired properties are included in Penn
West’s reported results subsequent to the closing date and results from
properties sold are included until the closing date.

All intercompany balances, transactions, income and expenses are
eliminated on consolidation.

3. Significant accounting policies

a) Critical accounting judgments and key estimates

The preparation of the consolidated financial statements in conformity
with IFRS requires management to make estimates and assumptions that
affect the recorded amounts of assets and liabilities, disclosure of
any contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses for the
period. These and other estimates are subject to measurement
uncertainty and the effect on the consolidated financial statements of
changes in these estimates could be material.

Management also makes judgments while applying accounting policies that
could affect amounts recorded in its consolidated financial statements.
Significant judgments include the identification of cash generating
units (“CGUs”) for impairment testing purposes, determining whether a
CGU or Exploration and Evaluation (“E&E”) asset has an impairment
indicator and determining whether an E&E asset is technically feasible
and commercially viable.

The following are the estimates that management has made in applying the
Company’s accounting policies that have the most significant effect on
the amounts recognized in the consolidated financial statements.

i) Reserve estimates

Commercial petroleum reserves are determined based on estimates of
petroleum-in-place, recovery factors and future oil and natural gas
prices and costs. Penn West engages an independent qualified reserve
evaluator to audit or evaluate all of the Company’s oil and natural gas
reserves at each year-end.

Reserve adjustments are made annually based on actual oil and natural
gas volumes produced, the results from capital programs, revisions to
previous estimates, new discoveries and acquisitions and dispositions
made during the year and the effect of changes in forecast future crude
oil and natural gas prices. There are a number of estimates and
assumptions that affect the process of evaluating reserves.

Proved reserves are the estimated quantities of crude oil, natural gas
and natural gas liquids determined to be economically recoverable under
existing economic and operating conditions with a high degree of
certainty (at least 90 percent) those quantities will be exceeded.
Proved plus probable reserves are the estimated quantities of crude
oil, natural gas and natural gas liquids determined to be economically
recoverable under existing economic and operating conditions with a 50
percent certainty those quantities will or will not be exceeded. Penn
West reports production and reserve quantities in accordance with
Canadian practices and specifically in accordance with “Standards of
Disclosure for Oil and Gas Activities” (“NI 51-101”).

The estimate of proved plus probable reserves is an essential part of
the depletion calculation, the impairment test and hence the recorded
amount of oil and gas assets.

Penn West cautions users of this information that the process of
estimating crude oil and natural gas reserves is subject to a level of
uncertainty. The reserves are based on current and forecast economic
and operating conditions; therefore, changes can be made to future
assessments as a result of a number of factors, which can include
commodity prices, new technology, changing economic conditions, future
reservoir performance and forecast development activity.

ii) Recoverability of asset carrying values

Penn West assesses its property, plant and equipment (“PP&E”) and
goodwill for impairment by comparing the carrying amount to the
recoverable amount of the underlying assets. The determination of the
recoverable amount involves estimating the higher of an asset’s fair
value less costs to sell or its value-in-use, the latter of which is
based on its discounted future cash flows using an applicable discount
rate. Future cash flows are calculated based on estimates of future
commodity prices and inflation and are discounted based on management’s
current assessment of market conditions.

iii) Recoverability of exploration and evaluation assets

E&E assets are assessed for impairment by comparing the carrying amount
to the recoverable amount. The assessment of the recoverable amount
involves a number of assumptions, including the timing, likelihood and
amount of commercial production, further resource assessment plans, and
future revenue and costs expected from the asset, if any.

iv) Decommissioning liability

Penn West recognizes a provision for future abandonment activities in
the consolidated financial statements at the net present value of the
estimated future expenditures required to settle the estimated
obligation at the balance sheet date. The measurement of the
decommissioning liability involves the use of estimates and assumptions
including the discount rate, the amount and expected timing of future
abandonment costs and the inflation rate related thereto. The estimates
were made by management and external consultants considering current
costs, technology and enacted legislation.

v) Fair value calculation on share-based payments

The fair value of share-based payments is calculated using a
Black-Scholes or a Binomial Lattice option-pricing model, depending on
the characteristics of the share-based payment. There are a number of
estimates used in the calculation such as the expected future
forfeiture rate, the expected period the share-based compensation is
outstanding and the future price volatility of the underlying security
all of which can vary from expectations. The factors applied in the
calculation are management’s estimates based on historical information
and future forecasts.

vi) Fair value of risk management contracts

Penn West records risk management contracts at fair value with changes
in fair value recognized in income. The fair values are determined
using external counterparty information which is compared to observable
market data.

vii) Taxation

The calculation of deferred income taxes is based on a number of
assumptions including estimating the future periods in which temporary
differences and other tax credits will reverse and the general
assumption that substantively enacted future tax rates at the balance
sheet date will be in effect when differences reverse.

viii) Litigation

Penn West has been named as a defendant in potential class action
lawsuits. Penn West records provisions related to legal matters if it
is probable that the Company will not be successful in defending the
claim and if an amount can be reasonably estimated. Determining the
probability of a claim being defended is subject to considerable
judgment. Additionally, the potential claim is generally a wide range
of figures and a single estimate must be made when recording a
provision. Contingencies will only be resolved or unfounded when one or
more future events occur. The assessment of contingencies involves
significant judgment and estimates of the potential outcome of future
events.

b) Business combinations

Penn West uses the acquisition method to account for business
combinations. The net identifiable assets and liabilities acquired in
transactions are generally measured at their fair value on the
acquisition date. The acquisition date is the closing date of the
business combination. Acquisition costs incurred by Penn West to
complete a business combination are expensed in the period incurred
except for costs related to the issue of any debt or equity securities,
which are recognized based on the nature of the related financing
instrument.

Revisions may be made to the initial recognized amounts determined
during the measurement period, which shall not exceed one year after
the close date of the acquisition.

c) Goodwill

Penn West recognizes goodwill on a business combination when the total
purchase consideration exceeds the net identifiable assets acquired and
liabilities assumed of the acquired entity. Following initial
recognition, goodwill is recognized at cost less any accumulated
impairment losses.

Goodwill is not amortized and the carrying amount is assessed for
impairment on an annual basis at December 31, or more frequently if
circumstances arise that indicate impairment may have occurred. To test
for impairment, the carrying amount of the CGU including goodwill, if
any, associated with the CGU, is compared to the recoverable amount of
the CGU or group of CGUs to which the goodwill is associated. If the
recoverable amount of the CGU exceeds the carrying value, then no
impairment exists. If the carrying value of the CGU exceeds the
recoverable amount of the CGU, then an impairment loss shall be
recorded. The determination of the recoverable amount involves estimating the higher of an asset’s fair
value less costs to sell and its value-in-use. Goodwill impairment
losses are not reversed in subsequent periods.

d) Revenue

Penn West generally recognizes oil and natural gas revenue when title
passes from Penn West to the purchaser or, in the case of services, as
contracted services are performed.

Revenue is measured at the fair value of the consideration received or
receivable. Revenue from the sale of crude oil, natural gas and natural
gas liquids (prior to deduction of transportation costs) is recognized
when all the following conditions have been satisfied:

• The significant risks and rewards of ownership of the goods have been
  transferred to the buyer;
• There is no continuing managerial involvement to the degree usually
  associated with ownership or effective control over the goods sold;
• The amount of revenue can be reliably measured;
• It is probable that the economic benefits associated with the
  transaction will flow to Penn West; and
• The costs incurred or to be incurred in respect of the transaction can
  be reliably measured.

Certain comparative figures within revenue have been reclassified to
correspond with current year presentation.

e) Joint arrangements

The consolidated financial statements include Penn West’s proportionate
interest of jointly controlled assets and liabilities and its
proportionate interest of the revenue, royalties and operating
expenses. A significant portion of Penn West’s exploration and
development activities are conducted jointly with others and involve
jointly controlled assets. Under such arrangements, Penn West has the
exclusive rights to its proportionate interest in the assets and the
economic benefits generated from its share of the assets. Income from
the sale or use of Penn West’s interest in jointly controlled assets
and its share of expenses is recognized when it is probable that the
economic benefits associated with the transactions will flow to/from
Penn West and the amounts can be reliably measured.

The Peace River Oil Partnership is a joint operation and Penn West
records its 55 percent interest of revenues, expenses, assets and
liabilities.

f) Transportation expense

Transportation costs are paid by Penn West for the shipping of natural
gas, crude oil and natural gas liquids from the wellhead to the point
of title transfer to buyers. These costs are recognized as services are
received.

Certain comparative figures within transportation expense have been
reclassified to correspond with current year presentation.

g) Foreign currency translation

Penn West and each of its subsidiaries use the Canadian dollar as their
functional currency. Monetary items, such as accounts receivable and
long-term debt, are translated to Canadian dollars at the rate of
exchange in effect at the balance sheet date. Non-monetary items, such
as PP&E, are translated to Canadian dollars at the rate of exchange in
effect when the associated transactions occurred. Revenues and expenses
denominated in foreign currencies are translated at the exchange rate
on the date of the transaction. Foreign exchange gains or losses on
translation are included in income.

h) E&E

i) Measurement and recognition

E&E assets are initially measured at cost. Items included in E&E
primarily relate to exploratory drilling, geological & geophysical
activities, acquisition of mineral rights and technical studies. These
expenditures are classified as E&E assets until the technical
feasibility and commercial viability of extracting oil and natural gas
from the assets has been determined.

ii) Transfer to PP&E

E&E assets are transferred to PP&E when they are technically feasible
and commercially viable which is generally when proved reserves have
been assigned to the asset. If proved reserves will not be established
through the completion of E&E activities and there are no plans for
development activity in a field, based on their recoverable amount, the
E&E assets are charged to income as E&E expense. Any revenue,
royalties, operating expenses and depletion prior to transfer are
recognized in the statement of income (loss).

iii) Pre-license costs

Pre-license expenditures incurred before Penn West has obtained the
legal rights to explore for hydrocarbons in a specific area are
expensed.

iv) Impairment

E&E assets are tested for impairment at the operating segment level when
facts or circumstances indicate that a possible impairment may exist
and prior to reclassification to PP&E. E&E impairment losses may be
reversed in subsequent periods.

i) PP&E

i) Measurement and recognition

Oil & Gas properties are included in PP&E at cost, less accumulated
depletion and depreciation and any impairment losses. The cost of PP&E
includes costs incurred initially to acquire or construct the item and
betterment costs.

Capital expenditures are recognized as PP&E when it is probable that
future economic benefits associated with the investment will flow to
Penn West and the cost can be reliably measured. PP&E includes capital
expenditures incurred in the development phases, acquisition and
disposition of PP&E, costs transferred from E&E and additions to the
decommissioning liability.

ii) Depletion and Depreciation

Except for components with a useful life shorter than the reserve life
of the associated property, resource properties are depleted using the
unit-of-production method based on production volumes before royalties
in relation to total proved plus probable reserves. Natural gas volumes
are converted to equivalent oil volumes based upon the relative energy
content of six thousand cubic feet of natural gas to one barrel of oil.
In determining its depletion base, Penn West includes estimated future
costs to develop proved plus probable reserves and excludes estimated
equipment salvage values. Changes to reserve estimates are included in
the depletion calculation prospectively.

Components of PP&E that are not depleted using the unit-of-production
method are depreciated on a straight-line basis over their useful life.
The turnaround component has an estimated useful life of three to five
years and the corporate asset component has an estimated useful life of
10 years.

iii) Derecognition

The carrying amount of an item of PP&E is derecognized when no future
economic benefits are expected from its use or upon sale to a third
party. The gain or loss arising from derecognition is included in
income and is measured as the difference between the net proceeds, if
any, and the carrying amount of the asset.

iv) Major maintenance and repairs

Ongoing costs to maintain properties are generally expensed as incurred.
These costs include the cost of labour, consumables and small parts.
The costs of material replacement parts, turnarounds and major
inspections are capitalized provided it is probable that future
economic benefits in excess of cost will be realized and such benefits
are expected to extend beyond the current operating period. The
carrying amount of a replaced part is derecognized in accordance with
Penn West’s derecognition policies.

v) Impairment of oil and natural gas properties

Penn West reviews oil and gas properties for circumstances that indicate
its assets may be impaired at the end of each reporting period. These
indicators can be internal (i.e. reserve changes) or external (i.e.
market conditions) in nature. If an indication of impairment exists,
Penn West completes an impairment test, which compares the estimated
recoverable amount to the carrying value. The estimated recoverable
amount is defined under IAS 36 (“Impairment of Assets”) as the higher
of an asset’s or CGU’s fair value less costs to sell and its
value-in-use.

Where the recoverable amount is less than the carrying amount, the CGU
is considered to be impaired. Impairment losses identified for a CGU
are allocated on a pro rata basis to the asset categories within the
CGU. The impairment loss is recognized as an expense in income.

Value-in-use is computed as the present value of future cash flows
expected to be derived from production. Present values are calculated
using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset. Under
the fair value less cost to sell method the recoverable amount is
determined using various factors, which can include external factors
such as observable market conditions and comparable transactions and
internal factors such as discounted cash flows related to reserve and
resource studies and future development plans.

Impairment losses related to PP&E can be reversed in future periods if
the estimated recoverable amount of the asset exceeds the carrying
value. The impairment recovery is limited to a maximum of the estimated
depleted historical cost if the impairment had not been recognized. The
reversal of the impairment loss is recognized in depletion,
depreciation and impairment.

vi) Other Property, Plant and Equipment

Penn West’s corporate assets include computer hardware and software,
office furniture, buildings and leasehold improvements and are
depreciated on a straight-line basis over their useful lives. Corporate
assets are tested for impairment separately from oil and gas assets.

j) Share-based payments

The fair value of options granted under the Stock Option Plan (the
“Option Plan”), and the Restricted Options and Share rights governed
under the Common Share Rights Incentive Plan (“CSRIP”) are recognized
as compensation expense with a corresponding increase to other reserves
in shareholders’ equity over the term of the options based on a graded
vesting schedule. Penn West measures the fair value of options granted
under these plans at the grant date using an option-pricing model. The
fair value is based on market prices and considers the terms and
conditions of the share options granted. All options under the CSRIP
expired by December 31, 2014.

The fair value of awards granted under the Long-Term Retention and
Incentive Plan (“LTRIP”), the Deferred Share Unit Plan (“DSU”), the
Performance Share Unit Plan (“PSU”) and Restricted Rights governed by
the CSRIP are based on a fair value calculation on each reporting date
using the awards outstanding and Penn West’s share price from the
Toronto Stock Exchange (“TSX”) on each balance sheet date. The fair
value of the awards is expensed over the vesting period based on a
graded vesting schedule. Subsequent increases and decreases in the
underlying share price result in increases and decreases, respectively,
to the accrued obligation until the related instruments are settled.

k) Provisions

i) General

Provisions are recognized based on an estimate of expenditures required
to settle present obligations at the end of the reporting period. The
provision is risk adjusted to take into account any uncertainties. When
the effect of the time value of money is material, the amount of a
provision is calculated as the present value of the future expenditures
required to settle the obligations. The discount rate reflects the
current assessment of the time value of money and risks specific to the
liability when those risks have not already been reflected as an
adjustment to future cash flows.

ii) Decommissioning liability

The decommissioning liability is the present value of Penn West’s future
costs of obligations for property, facility and pipeline abandonment
and site restoration. The liability is recognized on the balance sheet
with a corresponding increase to the carrying amount of the related
asset. The recorded liability increases over time to its future amount
through accretion charges to income. Revisions to the estimated amount
or timing of the obligations are reflected prospectively as increases
or decreases to the recorded liability and the related asset. Actual
decommissioning expenditures, up to the recorded liability at the time,
are charged to the liability as the costs are incurred. Amounts
capitalized to the related assets are amortized to income consistent
with the depletion or depreciation of the underlying asset.

l) Leases

A lease is classified as an operating lease if it does not transfer
substantially all of the risks and rewards incidental to ownership of
the related asset to the lessee. Operating lease payments are expensed
on a straight-line basis over the life of the lease.

m) Share capital

Common shares are classified as equity. Share issue costs are recorded
in shareholder’s equity, net of applicable taxes. Dividends are paid at
the discretion of the Board of Directors and are deducted from retained
earnings.

If issued, preferred shares would be classified as equity and could be
issued in one or more series.

n) Earnings per share

Earnings per share is calculated by dividing net income or loss
attributable to the shareholders by the weighted average number of
common shares outstanding during the period. Penn West computes the
dilutive impact of equity instruments other than common shares assuming
the proceeds received from the exercise of in-the-money share options
are used to purchase common shares at average market prices.

o) Taxation

Income taxes are based on taxable income in a taxation year. Taxable
income normally differs from income reported in the consolidated
statement of income as it excludes items of income or expense that are
taxable or deductible in other years or are not taxable or deductible
for income tax purposes.

Penn West uses the liability method of accounting for deferred income
taxes. Temporary differences are calculated assuming that the financial
assets and liabilities will be settled at their carrying amount.
Deferred income taxes are computed on temporary differences using
substantively enacted income tax rates expected to apply when deferred
income tax assets and liabilities are realized or settled.

p) Financial instruments

Financial instruments are measured at fair value and recorded on the
balance sheet upon initial recognition of an instrument. Subsequent
measurement and changes in fair value will depend on initial
classification, as follows:

• Fair value through profit or loss financial assets and liabilities and
  derivative instruments classified as held for trading or designated as
  fair value through profit or loss are measured at fair value and
  subsequent changes in fair value are recognized in income;
• Loans and receivables are non-derivative financial assets with fixed or determinable payments
  that are not quoted in an active market are initially measured at fair
  value with subsequent changes at amortized cost;
• Available-for-sale financial instruments are measured at fair value with
  changes in fair value recorded in equity until the instrument or a
  portion thereof is derecognized or impaired at which time the amounts
  would be recognized in income;
• Held to maturity financial assets and loans and receivables are
  initially measured at fair value with subsequent measurement at
  amortized cost using the effective interest method. The effective
  interest method calculates the amortized cost of a financial asset and
  allocates interest income or expense over the applicable period. The
  rate used discounts the estimated future cash flows over either the
  expected life of the financial asset or liability or a shorter
  time-frame if it is deemed appropriate; and
• Other financial liabilities are initially measured at fair value with
  subsequent changes to fair value measured at amortized cost.

Penn West’s current classifications are as follows:

• Cash and cash equivalents and accounts receivable are designated as
  loans and receivables;
• Accounts payable and accrued liabilities, dividends payable and
  long-term debt are designated as other financial liabilities; and
• Risk management contracts are derivative financial instruments measured
  at fair value through profit or loss.

Penn West assesses each financial instrument, except those valued at
fair value through profit or loss, for impairment at the reporting date
and records the gain or loss in income during the period.

q) Embedded derivatives

An embedded derivative is a component of a contract that affects the
terms of another factor, for example, rent costs that fluctuate with
oil prices. These “hybrid” contracts are considered to consist of a
“host” contract plus an embedded derivative. The embedded derivative is
separated from the host contract and accounted for as a derivative if
the following conditions are met:

• The economic characteristics and risks of the embedded derivative are
  not closely related to the economic characteristics and risks of the
  host contract;
• The embedded item, itself, meets the definition of a derivative; and
• The hybrid contract is not measured at fair value or designated as held
  for trading.

At December 31, 2014, Penn West had an embedded derivative related to a
crude oil assignment contract (2013 – none). Refer to note 11 for
details.

r) Classification of debt or equity

Penn West classifies financial liabilities and equity instruments in
accordance with the substance of the contractual arrangement and the
definitions of a financial liability or an equity instrument.

Penn West’s debt instruments currently have requirements to deliver cash
at the end of the term thus are classified as liabilities.

s) Enhanced oil recovery

The value of proprietary injectants is not recognized as revenue until
produced and sold to third parties. The cost of injectants purchased
from third parties for enhanced oil recovery projects is included in
PP&E. Injectant costs are depleted over the period of expected future
economic benefit on a unit-of-production basis. Costs associated with
the production of proprietary injectants are expensed.

t) New accounting policies

During the first quarter of 2014, Penn West adopted the following
standards:

IAS 32, “Financial Instruments: Presentation”, which clarifies the
requirements for offsetting financial assets and liabilities. The
amendments clarify when an entity has a legally enforceable right to
offset and certain other requirements that are necessary to present a
net financial asset or liability. There was no impact to Penn West on
adoption of this standard.

IFRIC 21 “Levies” provides guidance on accounting for levies in
accordance with the requirements of IAS 37, “Provisions, Contingent
Liabilities and Contingent Assets”. There was no impact to Penn West on adoption of this standard.

u) Future Accounting Pronouncements

The IASB issued IFRS 15 “Revenue from Contracts with Customers” which
replaces IAS 18 “Revenue”.  IAS 15 specifies revenue recognition
criteria and expanded disclosures for revenue. The new standard is
effective for annual periods beginning on or after January 1, 2017 and
early adoption is permitted. Penn West is currently assessing the
impact of the standard.

The IASB completed the final sections of IFRS 9 “Financial Instruments”
which replaces IAS 39 “Financial Statement: Recognition and
Measurement”. IFRS 9 provides guidance on the recognition and
measurement, impairment and derecognition on financial instruments. The
new standard is effective for annual periods beginning on or after
January 1, 2018 and early adoption is permitted. Penn West is currently
assessing the impact of the standard.

4. Working capital

					As at December 31
			2014		2013
Cash		$	67	$	–
Components of accounts receivable
	Trade	$	55	$	68
	Accruals		127		197
		$	182	$	265
Components of other assets
	Prepaid expenses	$	41	$	50
	Other		5		7
		$	46	$	57
Components of accounts payable and accrued liabilities
	Accounts payable	$	79	$	149
	Royalty payable		82		76
	Capital accrual		195		130
	Operating accrual		102		180
	Share-based compensation liability		5		12
	Other		66		51
		$	529	$	598

Accounts receivable

Penn West continuously monitors credit risk and maintains credit
policies to ensure collection risk is limited. Receivables are
primarily with customers in the oil and gas industry and are subject to
normal industry credit risk. Receivables over 90 days are classified as
past due and are assessed for collectability. If an amount is deemed to
be uncollectible, it is expensed through income.

As at December 31, based on Penn West’s credit assessments, provisions
have been made for amounts deemed uncollectible.  As at December 31,
the following accounts receivable amounts were outstanding.

		Current		30-90 days		90+ days		Total
2014	$	159	$	16	$	7	$	182
2013	$	210	$	40	$	15	$	265

5. Deferred funding assets

Deferred funding amounts relate to Penn West’s share of capital and
operating expenses to be funded by Penn West’s partner in the Peace
River Oil Partnership and Penn West’s share of capital expenditures to
be funded by Penn West’s partner in the Cordova Joint Venture. Amounts
expected to be settled within the next 12 months are classified as
current.

				As at December 31
		2014		2013
Peace River Oil Partnership	$	195	$	235
Cordova Joint Venture		84		88
Total	$	279	$	323
Current portion	$	84	$	139
Long-term portion		195		184
Total	$	279	$	323

6. Exploration and evaluation assets

				Year ended December 31
		2014		2013
Balance, beginning of year	$	645	$	609
Capital expenditures		92		18
Joint venture, carried capital		16		62
Expensed		(16)		(44)
Transfers to PP&E		(232)		–
Balance, end of year	$	505	$	645

On December 31, 2014 and 2013 no impairment existed related to
exploration and evaluation assets. An impairment test was completed on
amounts reclassified into PP&E during 2014 at which time the estimated
fair value exceeded the carrying amount and no impairment was
indicated.

Penn West’s non-cash E&E expense primarily relates to land expiries and
minor properties not expected to be continued into the development
phase.

7. Property, plant and equipment

Cost

		Oil and gas assets		Facilities		Turnarounds		Corporate assets		Total
Balance at January 1, 2013	$	13,107	$	5,382	$	14	$	143	$	18,646
Capital expenditures		318		341		1		10		670
Joint venture, carried capital		22		–		–		–		22
Acquisitions		14		4		–		–		18
Dispositions		(1,098)		(275)		–		–		(1,373)
Net decommissioning additions		(7)		(2)		–		–		(9)
Balance at December 31, 2013	$	12,356	$	5,450	$	15	$	153	$	17,974
Capital expenditures		397		232		–		11		640
Joint venture, carried capital		13		–		–		–		13
Acquisitions		10		2		–		–		12
Dispositions		(1,133)		(283)		–		–		(1,416)
Transfers from E&E		186		46		–		–		232
Net decommissioning dispositions		1		–		–		–		1
Balance at December 31, 2014	$	11,830	$	5,447	$	15	$	164	$	17,456

Accumulated depletion, depreciation and impairment

		Oil and gas Assets		Facilities		Turnarounds		Corporate assets		Total
Balance at January 1, 2013	$	6,137	$	1,848	$	11	$	56	$	8,052
Depletion and depreciation		817		194		1		11		1,023
Impairments		670		–		–		–		670
Dispositions		(677)		(169)		–		–		(846)
Balance at December 31, 2013	$	6,947	$	1,873	$	12	$	67	$	8,899
Depletion and depreciation		576		160		1		13		750
Impairments		413		221		–		–		634
Dispositions		(586)		(147)		–		–		(733)
Balance at December 31, 2014	$	7,350	$	2,107	$	13	$	80	$	9,550

Net book value

				As at December 31
		2014		2013
Total	$	7,906	$	9,075

On December 31, 2014, Penn West recorded a $634 million impairment
charge primarily related to certain properties in the Fort St. John
area of northeastern British Columbia, in the Swan Hills area of
Alberta and in certain properties in Manitoba. This was mainly due to
lower commodity price forecasts compared to the prior year and minimal
future development capital planned in these areas as they are non-core
in nature. The recoverable amounts used in the impairment tests, based
on fair value less cost to sell, related to these CGUs were calculated
using proved plus probable reserves and incremental development
drilling locations at a pre-tax discount rate of 10 percent.

On December 31, 2013, Penn West recorded a $670 million impairment
charge related to certain non-core, natural gas properties in British
Columbia and Alberta, primarily due to limited planned development
capital. Additionally, lower estimated reserve recoveries forecasted
for properties located in Manitoba contributed to the impairment. The
recoverable amounts used in the impairment tests, based on fair value
less cost to sell, related to these CGUs were calculated using proved
plus probable reserves and incremental development drilling locations
at a pre-tax discount rate of 10 percent.

Impairment losses have been included within depletion, depreciation and
impairment. As a result of Penn West’s strategic review process and
ongoing asset disposition activity, the Company re-aligned certain of
its CGUs with its current asset base in 2014.

The following table outlines benchmark prices adjusted for differentials
specific to the Company as at December 31, 2014 used in the impairment
tests:

	WTI ($US/ bbl)		AECO ($CAD/mcf)		Exchange rate ($US equals $1 CAD)
2015	$	55.00	$	3.32		0.85
2016		80.00		3.71		0.87
2017		90.00		3.90		0.87
2018		91.35		4.47		0.87
2019		92.72		5.05		0.87
2020 – 2024	$	96.98	$	5.31		0.87
Thereafter (inflation percentage)		1.5%		1.5%		–

8. Goodwill

	Year ended December 31
		2014		2013
Balance, beginning of year	$	1,912	$	1,966
Dispositions		(78)		(6)
Impairment		(1,100)		(48)
Balance, end of year	$	734	$	1,912

Penn West’s goodwill balance is primarily associated with a group of
CGUs which represent key light-oil properties in the Cardium, Slave
Point and Viking areas.

Penn West completed a goodwill impairment test for the balance related
to the above mentioned group of CGUs at December 31, 2014 and the
carrying value exceeded the recoverable amount by $1,100 million.  As a
result, an impairment was recorded. The recoverable amount was
determined based on the fair value less cost to sell method. The key
assumptions used in determining the recoverable amount include the
future cash flows using reserve and resource forecasts, forecasted
commodity prices, discount rates, foreign exchange rates, inflation
rates and future development costs estimated by independent reserve
engineers and other internal estimates based on historical experiences
and trends.

The values assigned to the future cash flows, forecasted commodity
prices and future development costs were obtained from Penn West’s
year-end reserve report, which was evaluated or audited by its
independent reserve engineers. These values were based on future cash
flows of proved plus probable reserves discounted at a rate of 10
percent (2013 – 10 percent). The future cash flows also consider, when
appropriate, past capital activities, competitor analysis, observable
market conditions, comparable transactions and future development costs
primarily based on anticipated development capital programs.

The value of resources incremental to the reserve report was obtained
from internal analysis completed by Penn West most notably through the
review of its drilling program results and competitor analysis and
outlined in its current five-year plan. This was further supported by
contingent resource studies that were compiled by independent reserve
engineers. Based on this internal analysis, Penn West identified and
risked potential drilling locations that were not assigned any proved
plus probable reserves. The value of these additional drilling
locations was included in the recoverable amount, based on the net
present value of proved undeveloped locations within the same resource
play from the Company’s most recent annual reserve report. A discount
rate of 10 percent (2013 – 10 percent) was applied to determine an
estimate of the present value of the future cash flows.

At December 31, 2013, Penn West completed a goodwill impairment test on
its Wainwright CGU, to which goodwill is allocated and recorded an
impairment charge in the amount of $48 million, which was the total
carrying value of the goodwill attributed to the CGU. The recoverable
amount was based on the fair value less cost to sell consistent with
the methodology applied above, which was primarily based on the proved
plus probable reserves value, discounted at 10 percent.

9. Long-term debt

					As at December 31
			2014		2013
Bankers’ acceptances and prime rate loans		$	–	$	401
U.S. Senior unsecured notes – 2007 Notes
	5.68%, US$160 million, maturing May 31, 2015		185		170
	5.80%, US$155 million, maturing May 31, 2017		180		165
	5.90%, US$140 million, maturing May 31, 2019		162		149
	6.05%, US$20 million, maturing May 31, 2022		23		21
Senior unsecured notes – 2008 Notes
	6.12%, US$153 million, maturing May 29, 2016		177		162
	6.16%, CAD$30 million, maturing May 29, 2018		30		30
	6.30%, US$278 million, maturing May 29, 2018		323		296
	6.40%, US$49 million, maturing May 29, 2020		57		53
UK Senior unsecured notes – UK Notes
	6.95%, £57 million, maturing July 31, 2018 (1)		103		100
Senior unsecured notes – 2009 Notes
	8.29%, US$50 million, maturing May 5, 2014		–		53
	8.89%, US$35 million, maturing May 5, 2016		40		37
	9.32%, US$34 million, maturing May 5, 2019		39		36
	8.89%, US$25 million, maturing May 5, 2019 (2)		29		32
	9.15%, £20 million, maturing May 5, 2019 (3)		36		35
	9.22%, €10 million, maturing May 5, 2019 (4)		14		15
	7.58%, CAD$5 million, maturing May 5, 2014		–		5
Senior unsecured notes – 2010 Q1 Notes
	4.53%, US$28 million, maturing March 16, 2015		32		29
	4.88%, CAD$50 million, maturing March 16, 2015		50		50
	5.29%, US$65 million, maturing March 16, 2017		75		69
	5.85%, US$112 million, maturing March 16, 2020		132		120
	5.95%, US$25 million, maturing March 16, 2022		29		27
	6.10%, US$20 million, maturing March 16, 2025		23		21
Senior unsecured notes – 2010 Q4 Notes
	4.44%, CAD$10 million, maturing December 2, 2015		10		10
	4.17%, US$18 million, maturing December 2, 2017		21		19
	5.38%, CAD$50 million, maturing December 2, 2020		50		50
	4.88%, US$84 million, maturing December 2, 2020		98		89
	4.98%, US$18 million, maturing December 2, 2022		21		19
	5.23%, US$50 million, maturing December 2, 2025		58		53
Senior unsecured notes – 2011 Q4 Notes
	3.64%, US$25 million, maturing November 30, 2016		29		27
	4.23%, US$12 million, maturing November 30, 2018		14		13
	4.63%, CAD$30 million, maturing November 30, 2018		30		30
	4.79%, US$68 million, maturing November 30, 2021		79		72
Total long-term debt		$	2,149	$	2,458

(1)	These notes bear interest at 7.78 percent in Pounds Sterling, however, contracts were entered into which fixed the interest rate at 6.95 percent in Canadian dollars.
(2)	This portion of the 2009 Notes has equal repayments, which began in 2013 with a repayment of $5 million, over the remaining six years.
(3)	These notes bear interest at 9.49 percent in Pounds Sterling, however, contracts were entered into which fixed the interest rate at 9.15 percent in Canadian dollars.
(4)	These notes bear interest at 9.52 percent in Euros, however, contracts were entered into which fixed the interest rate at 9.22 percent in Canadian dollars.

The split between current and non-current long-term debt is as follows:

				As at December 31
		2014		2013
Current portion	$	283	$	64
Long-term portion		1,866		2,394
Total	$	2,149	$	2,458

There were no senior unsecured notes issued in either 2014 or 2013. In
2014, the Company repaid $59 million of senior unsecured notes as they
matured.

Additional information on Penn West’s senior unsecured notes was as
follows:

				As at December 31
		2014		2013
Weighted average remaining life (years)		3.7		4.5
Weighted average interest rate (1)		6.0%		6.1%

(1)	Includes the effect of cross currency swaps.

During the second quarter of 2014, the Company renewed its unsecured,
revolving syndicated bank facility and voluntarily reduced its
aggregate borrowing capacity from $3.0 billion to $1.7 billion. The new
bank facility consists of two tranches: tranche one has a $1.2 billion
borrowing limit and an extendible five-year term (May 6, 2019 maturity
date) and tranche two has a $500 million borrowing limit and a June 30,
2016 maturity date. The bank facility contains provisions for stamping
fees on bankers’ acceptances and LIBOR loans and standby fees on
unutilized credit lines that vary depending on certain consolidated
financial ratios. At December 31, 2014, the Company had $1.7 billion of
unused credit capacity available as there were no drawings on its bank
facility.

In March 2015, subsequent to year-end, the Company reached agreements in
principle with the lenders under its syndicated bank facility and with
the holders of its senior, unsecured notes to, among other things,
amend the financial covenants in the bank facility and notes. As a
result, the $500 million tranche of the Company’s existing $1.7 billion
revolving, syndicated bank facility that was set to expire on June 30,
2016 will be cancelled. The remaining $1.2 billion tranche of the
revolving bank facility remains available to the Company in accordance
with the terms of the agreements governing such facility. Further
information is provided in Note 18.

Drawings on the Company’s bank facility are subject to fluctuations in
short-term money market rates as they are generally held in short-term
money market instruments. As at December 31, 2014, none (2013 – none)
of Penn West’s long-term debt instruments were exposed to changes in
short-term interest rates.

Letters of credit totalling $30 million were outstanding on December 31,
2014 (2013 – $7 million) that reduce the amount otherwise available to
be drawn on the bank facility.

Realized gains and losses on the interest rate swaps are recorded as
financing costs. For 2014, income of $1 million (2013 – $9 million
loss) was recorded to reflect that the floating interest rate was lower
than the fixed interest rate transacted under Penn West’s interest rate
swaps.

The estimated fair values of the principal and interest obligations of
the outstanding senior unsecured notes were as follows:

				As at December 31
		2014		2013
2007 Notes	$	560	$	546
2008 Notes		612		592
UK Notes		106		103
2009 Notes		183		239
2010 Q1 Notes		339		336
2010 Q4 Notes		239		247
2011 Notes		141		142
Total	$	2,180	$	2,205

10. Decommissioning liability

The decommissioning liability is based upon the present value of Penn
West’s net share of estimated future costs of obligations to abandon
and reclaim all wells, facilities and pipelines. These estimates were
made by management using information from internal analysis and
external consultants assuming current costs, technology and enacted
legislation.

The decommissioning liability was determined by applying an inflation
factor of 2.0 percent (2013 – 2.0 percent) and the inflated amount was
discounted using a credit-adjusted rate of 6.5 percent (2013 – 6.5
percent) over the expected useful life of the underlying assets,
currently extending over 50 years into the future.

The split between current and non-current decommissioning liability is
as follows:

				As at December 31
		2014		2013
Current portion	$	52	$	75
Long-term portion		533		528
Total	$	585	$	603

Changes to the decommissioning liability were as follows:

	Year ended December 31
		2014		2013
Balance, beginning of year	$	603	$	635
Net liabilities disposed (1)		(75)		(90)
Increase in liability due to changes in estimates		76		81
Liabilities settled		(55)		(66)
Accretion charges		36		43
Balance, end of year	$	585	$	603

(1)     Includes additions from drilling activity, facility capital
spending and disposals from net property dispositions.

 

 11. Risk management

Financial instruments included in the balance sheets consist of accounts
receivable, fair values of derivative financial instruments, accounts
payable and accrued liabilities, dividends payable and long-term debt.
Except for the senior, unsecured notes described in Note 9, the fair
values of these financial instruments approximate their carrying
amounts due to the short-term maturity of the instruments, the mark to
market values recorded for the financial instruments and the market
rate of interest applicable to the bank facility.

The fair values of all outstanding financial, commodity, power, interest
rate and foreign exchange contracts are reflected on the balance sheet
with the changes during the period recorded in income as unrealized
gains or losses.

As at December 31, 2014 and 2013, the only asset or liability measured
at fair value on a recurring basis was the risk management asset and
liability, which was valued based on “Level 2 inputs” being quoted
prices in markets that are not active or based on prices that are
observable for the asset or liability.

A comparison of the carrying value to the fair value of the financial
instruments included in the balance sheet was as follows:

		Carrying value				Fair value
	Classification	2014		2013		2014		2013
Accounts receivable	Loans and receivables	$	182	$	265	$	182	$	265
Derivative financial assets	FV through profit/loss		133		52		133		52
Derivative financial liabilities	FV through profit/loss		19		40		19		40
Accounts payable and accrued liabilities	Financial liabilities		529		598		529		598
Dividends payable	Financial liabilities		70		68		70		68
Bankers’ acceptances and prime rate loans	Financial liabilities		–		401		–		401
Senior notes (1)	Financial liabilities	$	2,149	$	2,057	$	2,180	$	2,205

(1)	Calculated as the present value of the interest and principal payments at December 31.

The following table reconciles the changes in the fair value of
financial instruments outstanding:

		Year ended December 31
Risk management asset (liability)		2014		2013
Balance, beginning of year		$	12	$	58
Unrealized gain (loss) on financial instruments:
	Commodity collars, swaps and assignments		51		(94)
	Electricity swaps		(2)		–
	Interest rate swaps		1		9
	Foreign exchange forwards		48		27
	Cross currency swaps		4		12
Total fair value, end of year		$	114	$	12
Total fair value consists of the following:
Fair value, end of year – current asset portion		$	31	$	2
Fair value, end of year – current liability portion			(9)		(24)
Fair value, end of year – non-current asset portion			102		50
Fair value, end of year – non-current liability portion			(10)		(16)
Total fair value, end of year		$	114	$	12

Based on December 31, 2014 pricing, a $0.10 change in the price per mcf
of natural gas would change pre-tax unrealized risk management by an
insignificant amount.

Penn West records its risk management assets and liabilities on a net
basis in the consolidated balance sheets. Excluding offsetting of
counterparty positions, Penn West’s risk management assets and
liabilities were as follows:

	As at December 31
	2014			2013
Risk management
	Current asset	$	31	$	3
	Non-current asset		102		51
	Current liability		(9)		(25)
	Non-current liability	$	(10)	$	(17)

Penn West had the following financial instruments outstanding as at
December 31, 2014. Fair values are determined using external
counterparty information, which is compared to observable market data.
Penn West limits its credit risk by executing counterparty risk
procedures which include transacting only with institutions within Penn
West’s credit facility or companies with high credit ratings and by
obtaining financial security in certain circumstances.

		Notional volume	Remaining term	Pricing	Fair value (millions)
Natural gas
	AECO Collars	70,000 mcf/d	Jan/15 – Dec/15	$3.69 to $4.52/mcf	$	23
Electricity swaps
	Alberta Power Pool	10 MW	Jan/15 – Dec/15	$58.50/MWh		(1)
	Alberta Power Pool	70 MW	Jan/15 – Dec/15	$55.17/MWh		(8)
	Alberta Power Pool	25 MW	Jan/16 – Dec/16	$49.90/MWh		(1)
Crude oil assignment
	18 – month term	10,000 boe/d	Jan/15 – July/16	Differential WCS (Edm) vs. WCS (USGC)		11
Foreign exchange forwards on senior notes
	3 to 15-year initial term	US$621	2015 – 2022	0.9986 CAD/USD		98
Cross currency swaps
	10-year initial term	£57	2018	2.0075 CAD/GBP, 6.95%		(9)
	10-year initial term	£20	2019	1.8051 CAD/GBP, 9.15%		2
	10-year initial term	€10	2019	1.5870 CAD/EUR, 9.22%		(1)
Total					$	114

A realized loss of $6 million (2013 – $11 million gain) on electricity
contracts has been included in operating expenses for 2014.

Market Risks

Penn West is exposed to normal market risks inherent in the oil and
natural gas business, including, but not limited to, commodity price
risk, foreign currency rate risk, credit risk, interest rate risk and
liquidity risk. The Company seeks to mitigate these risks through
various business processes and management controls and from time to
time by using financial instruments.

Commodity Price Risk

Commodity price fluctuations are among the Company’s most significant
exposures. Crude oil prices are influenced by worldwide factors such as
OPEC actions, world supply and demand fundamentals and geopolitical
events. Natural gas prices are influenced by the price of alternative
fuel sources such as oil or coal and by North American natural gas
supply and demand fundamentals including the levels of industrial
activity, weather, storage levels and liquefied natural gas activity.
In accordance with policies approved by Penn West’s Board of Directors,
the Company may, from time to time, manage these risks through the use
of swaps, collars or other financial instruments up to a maximum of 50
percent of forecast sales volumes, net of royalties, for the balance of
any current year plus one additional year forward and up to a maximum
of 25 percent, net of royalties, for one additional year thereafter.
Risk management limits included in Penn West’s policies may be exceeded
with specific approval from the Board of Directors.

Foreign Currency Rate Risk

Prices received for crude oil are referenced to US dollars, thus Penn
West’s realized oil prices are impacted by Canadian dollar to US dollar
exchange rates. A portion of the Company’s debt capital is denominated
in US dollars, thus the principal and interest payments in Canadian
dollars are also impacted by exchange rates. When considered
appropriate, the Company may use financial instruments to fix or collar
future exchange rates to fix the Canadian dollar equivalent of crude
oil revenues or to fix US denominated long-term debt principal
repayments. At December 31, 2014, the following foreign currency
forward contracts were outstanding:

Nominal Amount	Settlement date	Exchange rate
Buy US$76	2015	1.00705 CAD/USD
Buy US$76	2016	0.99885 CAD/USD
Buy US$104	2017	0.99895 CAD/USD
Buy US$113	2018	0.99885 CAD/USD
Buy US$98	2019	0.99339 CAD/USD
Buy US$134	2020	0.99885 CAD/USD
Buy US$20	2022	0.98740 CAD/USD

At December 31, 2014, Penn West had US dollar denominated debt with a
face value of US$1.0 billion (2013 – US$1.0 billion) on which the
repayment of the principal amount in Canadian dollars was not fixed.

Credit Risk

Credit risk is the risk of loss if purchasers or counterparties do not
fulfill their contractual obligations. The Company’s accounts
receivable are principally with customers in the oil and natural gas
industry and are generally subject to normal industry credit risk,
which includes the ability to recover unpaid receivables by retaining
the partner’s share of production when Penn West is the operator. For
oil and natural gas sales and financial derivatives, a counterparty
risk procedure is followed whereby each counterparty is reviewed on a
regular basis for the purpose of assigning a credit limit and may be
requested to provide security if determined to be prudent. For
financial derivatives, the Company normally transacts with
counterparties who are members of its banking syndicate or other
counterparties that have investment grade bond ratings. Credit events
related to all counterparties are monitored and credit exposures are
reassessed on a regular basis. As necessary, provisions for potential
credit related losses are recognized.

As at December 31, 2014, the maximum exposure to credit risk was $315
million (2013 – $317 million) which comprised of $182 million (2013 –
$265 million) being the carrying value of the accounts receivable and
$133 million (2013 – $52 million) related to the fair value of the
derivative financial assets.

Interest Rate Risk

A portion of the Company’s debt capital can be held in floating-rate
bank facilities, which results in exposure to fluctuations in
short-term interest rates, which remain at lower levels than
longer-term rates. From time to time, Penn West may increase the
certainty of its future interest rates by entering fixed interest rate
debt instruments or by using financial instruments to swap floating
interest rates for fixed rates or to collar interest rates. As at
December 31, 2014, none of the Company’s long-term debt instruments
were exposed to changes in short-term interest rates (2013 – none).

As at December 31, 2014, a total of $2.1 billion (2013 –  $2.1 billion)
of fixed interest rate debt instruments was outstanding with an average
remaining term of 3.7 years (2013 – 4.5 years) and an average interest
rate of 6.0 percent (2013 – 5.8 percent).

Liquidity Risk

Liquidity risk is the risk that the Company will be unable to meet its
financial liabilities as they come due. Management utilizes short and
long-term financial and capital forecasting programs to ensure credit
facilities are sufficient relative to forecast debt levels, dividend
and capital program levels are appropriate, and that financial
covenants will be met. Management also regularly reviews capital
markets to identify opportunities to optimize the debt capital
structure on a cost effective basis. In the short term, liquidity is
managed through daily cash management activities, short-term financing
strategies and the use of collars and other financial instruments to
increase the predictability of cash flow from operating activities.

The following table outlines estimated future obligations for
non-derivative financial liabilities as at December 31, 2014:

	2015		2016		2017		2018		2019		Thereafter
Senior unsecured notes	$	283	$	252	$	282	$	505	$	258	$	569
Accounts payable and accrued liabilities		524		–		–		–		–		–
Dividends payable		70		–		–		–		–		–
Share-based compensation accrual		5		4		–		–		–		–
Total	$	882	$	256	$	282	$	505	$	258	$	569

12. Income taxes

The provision for income taxes is as follows:

		Year ended December 31
Deferred tax recovery		2014		2013
	Changes in temporary differences	$	(118)	$	(233)

The provision for income taxes reflects an effective tax rate that
differs from the combined federal and provincial statutory tax rate as
follows:

		Year ended December 31
			2014		2013
Loss before taxes		$	(1,851)	$	(1,042)
Combined statutory tax rate (1)			25.4%		25.3%
Computed income tax recovery		$	(470)	$	(264)
Increase (decrease) resulting from:
	Share-based compensation		2		4
	Unrealized foreign exchange		39		21
	Disposition of goodwill		20		–
	Non-deductible impairment		279		14
	Other		12		(8)
Deferred tax recovery		$	(118)	$	(233)

(1)	The tax rate represents the combined federal and provincial statutory tax rates for the Company and its subsidiaries for the years ended December 31, 2014 and December 31, 2013.

Penn West has income tax filings that are subject to audit by taxation
authorities, which may impact its deferred tax liability. Penn West
does not anticipate adjustments arising from these audits and believes
it has adequately provided for income taxes based on available
information, however, adjustments that arise could be material.

The net deferred income tax liability is comprised of the following:

		Balance January 1, 2013		Provision (Recovery) in Income		Recognized in Property, Plant and Equipment		Balance December 31, 2013
Deferred tax liabilities (assets)
	PP&E	$	1,966	$	(14)	$	(12)	$	1,940
	Risk management		26		(23)		–		3
	Decommissioning liability		(161)		8		–		(153)
	Share-based compensation		(7)		2		–		(5)
	Non-capital losses		(546)		(199)		–		(745)
Net deferred tax liability		$	1,278	$	(226)	$	(12)	$	1,040

		Balance January 1, 2014		Provision (Recovery) in Income		Recognized in Property, Plant and Equipment		Balance December 31, 2014
Deferred tax liabilities (assets)
	PP&E	$	1,940	$	(309)	$	(8)	$	1,623
	Risk management		3		26		–		29
	Decommissioning liability		(153)		5		–		(148)
	Share-based compensation		(5)		3		–		(2)
	Non-capital losses		(745)		157		–		(588)
Net deferred tax liability		$	1,040	$	(118)	$	(8)	$	914

13. Shareholders’ equity

a) Authorized

i) An unlimited number of Common Shares.

ii) 90,000,000 preferred shares issuable in one or more series.

Penn West has a Dividend Reinvestment and Optional Share Purchase Plan
(the “DRIP”) that provides eligible shareholders the opportunity to
reinvest quarterly cash dividends into additional common shares at a
potential discount. Common shares are issued from Treasury at 95
percent of the 10-day volume-weighted average market price when
available. When common shares are not available from Treasury they are
acquired in the open market at prevailing market prices. In December
2014, Penn West suspended the DRIP until further notice effective for
the first quarter of 2015 dividend payment in April.

Eligible shareholders who participate in the DRIP may also purchase
additional common shares, subject to a quarterly maximum of $15,000 and
a minimum of $500. Optional cash purchase common shares are acquired in
the open market at prevailing market prices or issued from Treasury,
without a discount at the 10-day volume-weighted average market price.

If issued, preferred shares of each series would rank on parity with the
preferred shares of other series with respect to accumulated dividends
and return on capital. Preferred shares would have priority over the
Common shares with respect to the payment of dividends or the
distribution of assets.

b) Issued

Shareholders’ capital	Common Shares	Amount
Balance, January 1, 2013	479,258,670	$	8,774
Issued on exercise of equity compensation plans (1)	1,239,181		44
Issued to dividend reinvestment plan	9,275,996		95
Cancellations (2)	(696,563)		–
Balance, January 1, 2014	489,077,284	$	8,913
Issued on exercise of equity compensation plans (1)	1,067,000		12
Issued to dividend reinvestment plan	7,175,803		58
Balance, December 31, 2014	497,320,087	$	8,983

(1)	Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital. In 2014, no shares (2013 – 102,793) were issued from Treasury due to individuals settling restricted rights in exchange for common shares.
(2)	Represents shares cancelled pursuant to sunset clauses contained in prior plans of arrangement.

	Year ended December 31
Other Reserves	2014		2013
Balance, beginning of year	$	80	$	97
Share-based compensation expense		10		15
Net benefit on options exercised (1)		(1)		(32)
Balance, end of year	$	89	$	80

(1)	Upon exercise of options, the net benefit is recorded as a reduction of other reserves and an increase to shareholders’ capital.

Preferred Shares

No Preferred Shares were issued or outstanding.

14. Share-based compensation

Stock Option Plan

Penn West has an Option Plan that allows Penn West to issue options to
acquire common shares to officers, employees and other service
providers. The current plan came into effect on January 1, 2011.

Under the terms of the plan, the number of options reserved for issuance
under the Option Plan shall not exceed nine percent of the aggregate
number of issued and outstanding common shares of Penn West. The grant
price of options is equal to the volume-weighted average trading price
of the common shares on the TSX for a five-trading-day period
immediately preceding the date of grant. Options granted to date vest
over a four-year period and expire five years after the date of grant.

	Year ended December 31
	2014			2013
Options	Number of Options	Weighted Average Exercise Price		Number of Options	Weighted Average    Exercise Price
Outstanding, beginning of year	14,951,830	$	17.63	15,737,400	$	22.54
Granted	8,332,400		8.84	8,937,200		10.32
Exercised	(1,067,000)		9.80	(1,000,000)		10.24
Forfeited	(7,757,072)		16.20	(8,722,770)		19.85
Outstanding, end of year	14,460,158	$	13.91	14,951,830	$	17.63
Exercisable, end of year	4,162,904	$	20.14	3,419,818	$	23.46

Options Outstanding					Options Exercisable
Range of Grant Prices	Number Outstanding	Weighted Average Exercise Price		Weighted Remaining Contractual Life (years)	Number Exercisable	Weighted Average Exercise Price
$3.00 – $8.99	917,500	$	4.76	5.0	–	$	–
$9.00 – $14.99	9,062,125	10.10		3.7	1,287,400	11.43
$15.00 – $20.99	548,900	18.99		2.0	388,200	19.01
$21.00 – $27.99	3,931,633	24.12		1.7	2,487,304	24.83
	14,460,158	$	13.91	2.7	4,162,904	$	20.14

Common Share Rights Incentive Plan (“CSRIP”)

The CSRIP included Restricted Options, Restricted Rights and Share
Rights, all of which expired by December 31, 2014.

	Year ended December 31
	2014			2013
Restricted Options	Number of Restricted Options	Weighted Average Exercise Price		Number of Restricted Options	Weighted Average    Exercise Price
Outstanding, beginning of year	3,055,414	$	23.84	10,535,361	$	23.84
Forfeited	(3,055,414)		23.84	(7,479,947)		23.84
Outstanding, end of year	–	$	–	3,055,414	$	23.84
Exercisable, end of year	–	$	–	3,055,414	$	23.84

	Year ended December 31
	2014			2013
Restricted Rights	Number of Restricted Rights	Weighted Average Exercise Price		Number of Restricted Rights	Weighted Average    Exercise Price
Outstanding, beginning of year	3,055,414	$	16.91	10,535,361	$	13.32
Exercised (1)	–		–	(4,528,893)		6.65
Forfeited	(3,055,414)		16.36	(2,951,054)		16.45
Outstanding, end of year (2)	–	$	–	3,055,414	$	16.91
Exercisable, end of year	–	$	–	3,055,414	$	16.91

(1)	The weighted average share price of restricted rights exercised in 2014 was $nil per share (2013 – $10.67 per share).
(2)	Weighted average exercise price includes reductions of the exercise price for dividends paid.

	Year ended December 31
	2014			2013
Share Rights	Number of Share Rights	Weighted Average Exercise Price		Number of Share Rights	Weighted Average    Exercise Price
Outstanding, beginning of year	40,310	$	15.94	291,638	$	11.99
Exercised (1)	–		–	(136,388)		6.23
Forfeited	(40,310)		15.66	(114,940)		15.03
Outstanding, end of year (2)	–	$	–	40,310	$	15.94
Exercisable, end of year	–	$	–	40,310	$	15.94

(1)	The weighted average share price on share rights exercised in 2014 was $nil per share (2013 – $10.56 per share).
(2)	Weighted average exercise price includes reductions of the exercise price for dividends/ distributions paid.

Long-term retention and incentive plan (“LTRIP”)

Under the LTRIP, Penn West employees receive cash consideration, that
fluctuates based on Penn West’s share price on the TSX. Eligible
employees receive a grant of a specific number of LTRIP awards (each of
which notionally represents a common share) that vest over a three-year
period with the cash value paid to the employee on each vesting date.
If the service requirements are met, the cash consideration paid is
based on the number of LTRIP awards vested and the five-day weighted
average trading price of the common shares prior to the vesting date
plus dividends declared by Penn West during the period preceding the
vesting date.

	Year ended December 31
LTRIP awards (number of shares equivalent)	2014	2013
Outstanding, beginning of year	2,813,769	1,951,655
Granted	2,749,440	3,102,225
Vested and paid	(1,132,029)	(780,228)
Forfeited	(1,264,704)	(1,459,883)
Outstanding, end of year	3,166,476	2,813,769

At December 31, 2014, LTRIP obligations of $4 million were classified as
a current liability (2013 – $10 million) included in accounts payable
and accrued liabilities and $3 million were classified as a non-current
liability (2013 – $7 million) included in other non-current
liabilities.

Deferred Share Unit (“DSU”) plan

The DSU plan became effective January 1, 2011, allowing Penn West to
grant DSUs in lieu of cash fees to non-employee directors providing a
right to receive, upon retirement, a cash payment based on the
volume-weighted-average trading price of the common shares on the TSX
for the five trading days immediately prior to the day of payment.
Management directors are not eligible to participate in the DSU Plan.
At December 31, 2014, 181,873 DSUs (2013 – 104,663) were outstanding
and $1 million was recorded as a current liability (2013 – $1 million).

Performance Share Unit plan (“PSU”)

The PSU plan became effective February 13, 2013, allowing Penn West to
grant PSUs to employees of Penn West. Upon meeting the vesting
conditions, the employee could receive a cash payment based on
performance factors determined by the Board of Directors and the share
price. Members of the Board of Directors are not eligible for the PSU
Plan.

	Year ended December 31
PSU awards (number of shares equivalent)	2014	2013
Outstanding, beginning of year	969,723	–
Granted	620,000	1,544,429
Vested	(570,770)	(494,140)
Forfeited	(247,933)	(80,566)
Outstanding, end of year	771,020	969,723

The PSU obligation is classified as a liability due to the cash
settlement feature. The change in the fair value of outstanding PSU
awards is charged to income based on the common share price at the end
of each reporting period plus accumulated dividends multiplied by a
performance factor determined by the Board of Directors. At December
31, 2014, nil (December 31 2013 – $1 million) was classified as a
current liability included in accounts payable and accrued liabilities
and $1 million was classified as a non-current liability (December 31,
2013 – $2 million) and included in other non-current liabilities.

Share-based compensation

Share-based compensation is based on the fair value of the options at
the time of grant under the Option Plan and the CSRIP, which is
amortized over the remaining vesting period on a graded vesting
schedule. Share-based compensation under the LTRIP, DSU and PSU is
based on the fair value of the awards outstanding at the reporting date
and is amortized based on a graded vesting schedule. Share-based
compensation consisted of the following:

	Year ended December 31
	2014		2013
Options	$	10	$	15
LTRIP		2		13
DSU		–		1
PSU		–		3
Share-based compensation	$	12	$	32

Share-based compensation related to the CSRIP was insignificant in 2014
and 2013.

During 2014, $1 million of PSU expense was accelerated and reclassified
from share-based compensation to restructuring expense in the
Consolidated Statement of Income (Loss) as it related to the severance
of former executives.

The share price used in the fair value calculation of the LTRIP,
Restricted Rights, PSU and DSU obligations at December 31, 2014 was
$2.43 (2013 – $8.87).

A Black-Scholes option-pricing model was used to determine the fair
value of options granted under the Option Plan with the following fair
value per option and weighted average assumptions:

	Year ended December 31
	2014		2013
Average fair value of options granted (per share)	$	1.14	$	1.03
Expected life of options (years)		4.0		4.0
Expected volatility (average)		35.3%		32.4%
Risk-free rate of return (average)		1.4%		1.5%
Dividend yield		5.5%		6.5%

Employee retirement savings plan

Penn West has an employee retirement savings plan (the “savings plan”)
for the benefit of all employees. Under the savings plan, employees may
elect to contribute up to 10 percent of their salary and Penn West
matches these contributions at a rate of $1.50 for each $1.00 of
employee contribution. Both the employee’s and Penn West’s
contributions are used to acquire Penn West common shares or are placed
in low-risk investments. Shares are purchased in the open market at
prevailing market prices.

15. Dividends

Dividends are paid quarterly at the discretion of the Board of Directors
and are deducted from retained earnings as declared.

In 2014, Penn West paid dividends of $275 million or $0.56 per share
(2013 – $458 million or $0.95 per share). In December 2014, Penn West
announced its intention to further reduce its quarterly dividend
commencing in the first quarter of 2015 to $0.03 per share from $0.14
per share. In March 2015, subsequent to year-end and in connection with
the amendments to its financial covenants, the Company announced a
further reduction to its dividend commencing in the first quarter to
$0.01 per share. Further information is provided in Note 18.

Penn West paid its fourth quarter 2014 dividend of $0.14 per share
totaling $70 million on January 15, 2015.

16. Per share amounts

The number of incremental shares included in diluted earnings per share
is computed using the average volume-weighted market price of shares
for the period. In addition, contracts that could be settled in cash or
shares are assumed to be settled in shares if share settlement is more
dilutive.

	Year ended December 31
	2014		2013
Net loss – basic and diluted	$	(1,733)	$	(809)

The weighted average number of shares used to calculate per share
amounts is as follows:

	Year ended December 31
	2014		2013
Basic and Diluted		493,668,553		485,814,089

For 2014, 14.5 million shares (2013 – 18.0 million) that would be issued
under the Option Plan were excluded in calculating the weighted average
number of diluted shares outstanding as they were considered
anti-dilutive.

17. Changes in non-cash working capital (increase) decrease

	Year ended December 31
	2014		2013
Accounts receivable	$	83	$	99
Other current assets		11		7
Deferred funding obligation		15		19
Accounts payable and accrued liabilities		(82)		(176)
	$	27	$	(51)
Operating activities	$	(32)	$	49
Investing activities		59		(100)
	$	27	$	(51)
Interest paid	$	158	$	177
Income taxes recovered	$	–	$	7

18. Capital management

Penn West manages its capital to provide a flexible structure to support
capital programs, dividend policies, production maintenance and other
operational strategies. Attaining a strong financial position enables
the capture of business opportunities and supports Penn West’s business
strategy of providing shareholder return through a combination of
growth and yield.

Penn West defines capital as the sum of shareholders’ equity and
long-term debt. Shareholders’ equity includes shareholders’ capital,
other reserves and retained earnings (deficit). Long-term debt includes
bank loans and senior unsecured notes.

Management continuously reviews Penn West’s capital structure to ensure
the objectives and strategies of Penn West are being met. The capital
structure is reviewed based on a number of key factors including, but
not limited to, current market conditions, hedging positions, trailing
and forecast debt to capitalization ratios, debt to EBITDA and other
economic risk factors. Dividends are paid quarterly at the discretion
of the Board of Directors.

The Company is subject to certain quarterly financial covenants under
its unsecured, syndicated credit facility and the senior unsecured
notes. These financial covenants are typical for senior unsecured
lending arrangements and include senior debt and total debt to EBITDA
and senior debt and total debt to capitalization as defined in Penn
West’s lending agreements. As at December 31, 2014, the Company was in
compliance with all of its financial covenants under such lending
agreements.

			Year ended December 31
(millions, except ratio amounts)			2014		2013
Components of capital
	Shareholders’ equity		$	5,582	$	7,513
	Long-term debt		$	2,149	$	2,458
Ratios
	Senior debt to EBITDA (1)		2.1			2.3
	Total debt to EBITDA (2)		2.1			2.3
	Senior debt to capitalization (3)		28%			25%
	Total debt to capitalization (4)		28%			25%
	Priority debt to consolidated tangible assets (5)		–			–
EBITDA (6)			$	1,022	$	1,066
Credit facility debt and senior notes			$	2,149	$	2,458
Letters of credit (7)				5		7
Senior debt and total debt				2,154		2,465
Total shareholders’ equity				5,582		7,513
Total capitalization			$	7,736	$	9,978

(1)	Less than 3:1 and not to exceed 3.5:1 in the event of a material acquisition.
(2)	Less than 4:1.
(3)	Not to exceed 50 percent except in the event of a material acquisition when the ratio is not to exceed 55 percent.
(4)	Not to exceed 55 percent except in the event of a material acquisition when the ratio is not to exceed 60 percent.
(5)	Priority debt not to exceed 15% of consolidated tangible assets.
(6)	EBITDA is calculated in accordance with Penn West’s lending agreements wherein unrealized risk management and impairment provisions are excluded.
(7)	Letters of credit defined as financial covenants under the lending agreements are included in the calculation.

As a result of the current low commodity price environment, Penn West
has actively been in negotiations with the lenders under its revolving,
syndicated bank facility and with the holders of its senior, unsecured
notes to ensure its financial flexibility. Effective March 10, 2015,
the Company reached agreements in principle with the lenders and the
noteholders to, among other things, amend its financial covenants as
follows:

• the maximum Senior Debt to EBITDA and Total Debt to EBITDA ratio will be
  less than or equal to 5:1 for the period January 1, 2015 through and
  including June 30, 2016, decreasing to less than or equal to 4.5:1 for
  the quarter ending September 30, 2016 and decreasing to less than or
  equal to 4:1 for the quarter ending December 31, 2016;
• the Senior Debt to EBITDA ratio will decrease to less than or equal to
  3:1 for the period from and after January 1, 2017; and
• the Total Debt to EBITDA ratio will remain at less than or equal to 4:1
  for all periods after December 31, 2016.

The Company also agreed as follows:

• to temporarily grant floating charge security over all of its property
  in favor of the lenders and the noteholders on a pari passu basis,
  which security will be fully released upon the Company achieving both
  (i) a Senior Debt to EBITDA ratio of 3:1 or less for four consecutive
  quarters, and (ii) an investment grade rating on its senior unsecured
  debt;
• to cancel the $500 million tranche of the Company’s existing $1.7
  billion syndicated bank facility that was set to expire on June 30,
  2016, the remaining $1.2 billion tranche of the revolving bank facility
  remains available to the Company in accordance with the terms of the
  agreements governing such facility;
• to temporarily reduce its quarterly dividend commencing in the first
  quarter of 2015 from its previously announced $0.03 per share to $0.01
  per share until the earlier of (i) the Senior Debt to EBITDA being less
  than 3:1 for two consecutive quarters ending on or after September 30,
  2015, and (ii) March 30, 2017; and
• until March 30, 2017, to offer aggregate net proceeds up to $650 million
  received from all sales exchanges, lease transfers or other
  dispositions of its property to prepay at par any outstanding principal
  amounts owing to the noteholders, with corresponding pro rata amounts
  from such dispositions to be used by the Company to prepay any
  outstanding amounts drawn under its syndicated bank facility.

The Company intends to continue to actively identify and evaluate
hedging opportunities in order to reduce its exposure to fluctuations
in commodity prices and protect its future cash flows and capital
programs.

The amendments described above are expected to become effective on or
before April 15, 2015 and are subject to the execution and delivery of
definitive amending agreements in forms mutually satisfactory to the
parties thereto and to the satisfaction of conditions customary in
transactions of this nature.

19. Commitments and contingencies

Penn West is committed to certain payments over the next five calendar
years and thereafter as follows:

		2015			2016			2017			2018			2019			Thereafter
Long-term debt		$	283		$	252		$	282		$	505		$	258		$	569
Transportation			22			17			48			58			56			280
Power infrastructure			21			10			10			10			10			8
Drilling rigs			15			17			12			–			–			–
Purchase obligations			5			1			1			1			1			–
Interest obligations			120			106			90			67			39			52
Office lease			58			57			54			54			54			294
Decommissioning liability		$	52		$	67		$	77		$	76		$	72		$	241

Penn West’s syndicated bank facility has $1.2 billion due for renewal on
May 6, 2019 and $500 million due for renewal on June 30, 2016. In
addition, Penn West has an aggregate of $2.1 billion in senior notes
maturing between 2015 and 2025.

Penn West’s commitments relate to the following:

• Transportation commitments relate to costs for future pipeline access.
  In 2014, Penn West temporarily assigned a portion of its commitment
  (35,000 boe per day) on the Flanagan South line for terms of 18 and 30
  months.
• Power infrastructure commitments pertain to electricity contracts.
• Drilling rigs are contracts held with service companies to ensure Penn
  West has access to specific drilling rigs at the required times.
• Purchase obligations relate to Penn West’s commitments for CO2 purchases
  and processing fees related to Penn West’s interests in the Weyburn CO2
  miscible flood property in S.E. Saskatchewan. These amounts represent
  estimated commitments of $4 million for CO2 purchases and $4 million
  for processing fees related to Penn West’s interest in the Weyburn
  Unit.
• Interest obligations are the estimated future interest payments related
  to Penn West’s debt instruments.
• Office leases pertain to total leased office space. A portion of this
  office space has been sub-leased to other parties to minimize Penn
  West’s net exposure under the leases. The future office lease
  commitments above will be reduced by sublease recoveries totaling $355
  million. For 2014, lease costs, net of recoveries totaled $27 million.
• The decommissioning liability represents the inflated, discounted future
  reclamation and abandonment costs that are expected to be incurred over
  the life of the properties.

Penn West is involved in various litigation and claims in the normal
course of business and records provisions for claims as required. In
the third quarter of 2014, Penn West became aware of a number of
putative securities class action claims having been filed or threatened
to be filed in both Canada and the United States relating to damages
alleged to have been incurred due to a decline in share price related
to the restatement of certain of Penn West’s historical financial
statements and related MD&A. In the third quarter of 2014, Penn West
was served with statements of claim against the Company and certain of
its present and former directors and officers relating to such types of
securities class actions in the Provinces of Alberta, Ontario and
Quebec and in the United States. To date, none of these proceedings has
been certified under applicable class proceedings legislation. In the
United States, the Court has consolidated the various actions,
appointed lead plaintiffs, and set a scheduling for the parties to
brief a motion to dismiss. Amounts claimed in the Canadian and United
States proceedings are significant, but at this stage in the process,
any estimate of the Company’s potential exposure or liability, if any,
are premature and cannot be meaningfully determined. The Company
intends to vigorously defend against any such actions.

20. Related-party transactions

Operating entities

The consolidated financial statements include the results of Penn West
Petroleum Ltd. and its wholly-owned subsidiaries, notably the Penn West
Petroleum Partnership. Transactions and balances between Penn West
Petroleum Ltd. and all of its subsidiaries are eliminated upon
consolidation.

Compensation of key management personnel

Key management personnel include the President and Chief Executive
Officer, Executive Vice Presidents, Senior Vice-Presidents and the
Board of Directors. The Human Resources & Compensation Committee makes
recommendations to the Board of Directors who approves the appropriate
remuneration levels for management based on performance and current
market trends. Compensation levels of the Board of Directors are
recommended by the Corporate Governance committee of the Board. The
remuneration of the directors and key management personnel of Penn West
during the year is below.

	Year ended December 31
	2014		2013
Salary and employee benefits	$	4	$	4
Termination benefits		6		8
Share-based payments (1)		2		11
	$	12	$	23

(1)	Includes changes in the fair value of Restricted Rights and PSUs and non-cash charges related to the Option Plan, CSRIP, and DSU for key management personnel.

21. Supplemental Items

In the consolidated financial statements, compensation costs are
included in both operating and general and administrative expenses. For
2014, employee compensation costs of $70 million (2013 – $114 million)
were included in operating expenses and $91 million (2013 – $132
million) were included in general and administrative expenses.

Investor Information

---

Penn West is one of the largest conventional oil and natural gas
producers in Canada. Our goal is to be the company that redefines oil &
gas excellence in western Canada. Based in Calgary, Alberta, Penn West
operates a significant portfolio of opportunities with a dominant
position in light oil in Canada on a land base encompassing
approximately 4.5 million acres.

Penn West shares are listed on the Toronto Stock Exchange under the
symbol PWT and on the New York Stock Exchange under the symbol PWE.

Fourth Quarter and Year Ended 2014 Results Conference Call Details

A conference call and webcast presentation will be held to discuss the
matters noted above at 9:00am Mountain Time (11:00am Eastern Time) on
Thursday, March 12, 2015.

To listen to the conference call, please call 647-427-7450 or
1-888-231-8191 (toll-free). This call will be broadcast live on the
Internet and may be accessed directly at the following URL:
http://event.on24.com/r.htm?e=942376&s=1&k=434E93C40F537CC3DC0C8CE012C9040E

A digital recording will be available for replay two hours after the
call’s completion, and will remain available until March 26, 2015 21:59
Mountain Time (23:59 Eastern Time). To listen to the replay, please
dial 416-849-0833 or 1-855-859-2056 (toll-free) and enter Conference ID
84609434, followed by the pound (#) key.

  

  

SOURCE Penn West