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A Condential Presentation

PENN WEST PETROLEUM LTD.

MINERAL TITLE LAND AND ROYALTY OFFERING | FEBRUARY 2015

Presented By

MINERAL TITLE LAND AND ROYALTY OFFERING

PENN WEST PETROLEUM LTD.

Offering Overview

ROYALTY LAND MAP

OFFERING MAP

Central Alberta
Viking / Greater Coleville

A unique opportunity to establish an


ownership position in over 15,000 acres of
ROYALTY LAND MAP
mineral fee title land and acquire
multiple
royalty interests (RI) from well-established
producing formations across western Canada

Central Alberta

Southern Alberta
Southern Alberta

Southwest Saskatchewan

Southeast Saskatchewan /
Central Manitoba

LEGEND
Fee Land
Royalty Land
Royalty Area Boundary

ROYALTY REVENUE, LAND AND PRODUCTION SUMMARY(1)

LEGEND

ROYALTY AREA

Fee Land
Southeast Saskatchewan / Manitoba
Royalty Land
Southwest Saskatchewan
Royalty Area Boundary
Viking / Greater Coleville
Central Alberta
Southern Alberta
TOTAL OFFERING

REVENUE AS AT 10/31/14
1 MONTH
($m)

12 MONTHS
($m)

ROYALTY LAND
(acres)

LEASED FEE LAND


(acres)

UNLEASED FEE LAND


(acres)

PRODUCTION 10/14
(boe/d)

$697.3

$9,427

109,769

1,687

3,300

279

$135.2

$1,460

10,890

119

321

56

$225.1

$3,640

40,856

4,187

5,084

107

$329.8

$4,165

67,270

200

240

272

$28.0

$514

58,788

319

178

28

$1,415.4

$19,208

287,575

6,511

9,122

742

Note: Numbers may not add due to rounding


(1) Company Actuals

TD Energy Advisors

MINERAL TITLE LAND AND ROYALTY OFFERING

PENN WEST PETROLEUM LTD.

Royalty Revenue, Production and Opportunity Summary


REVENUE SUMMARY(1)

PRODUCTION SUMMARY(1)

750

4,000

600

3,000

450

2,000

300

1,000

150

October 2014

(boe/d)

5,000

Annualized 2014 revenue


stream of $19.5 million
from third party production
of approximately 742 boe/d
(57% oil)

1 Month

($m)

OFFERING DESCRIPTION

900

6,000

2012

Oil RI Revenue

2013

2014

Liquids RI Revenue

Gas RI Revenue

2012

2013

Oil RI Production

2014

Liquids RI Production

Gas RI Production

AREA CHARACTERISTICS
ROYALTY AREA

PRODUCING ZONES

Bakken
Southeast Saskatchewan /
Lodgepole
Manitoba
Frobisher

Midale
Tilston

COMMODITY
SPLIT
(% Oil)

INDUSTRY ACTIVITY
WELLS
(Last 3 Years)

92%

385

Crescent Point
Corex
Tundra

TOP OPERATORS

Legacy
Spartan

Southwest Saskatchewan

Shaunavon

Cantuar

93%

15

Crescent Point

Viking / Greater Coleville

Viking
Mannville

Bakken
Lloydminster

78%

449

ISH Energy
Northern Blizzard
Beaumont

Novus
Spur
Raging River

Central Alberta

Cardium

Glauconitic

17%

56

Bellatrix
NAL

Bonavista

Southern Alberta

Barons
Glauconitic

Livingstone

21%

10

Journey

Consistent production and


revenue growth over the
past three years
Unique opportunity to
acquire a diverse asset base
producing from a number of
established reservoirs across
Western Canada
Well positioned in the heart
of established plays that
continue to attract capital
Top tier operators across
the assets ensure continued
activity, high success and
efficiency rates in both
drilling and operations
Increased horizontal drilling
in recent years provides
the potential to unlock
additional value

(1) Company Actuals

TD Energy Advisors

MINERAL TITLE LAND AND ROYALTY OFFERING

PENN WEST PETROLEUM LTD.

Process
Penn West Petroleum Ltd. (Penn West or PWT or the Company)
has engaged TD Securities as its exclusive financial advisor to manage a
process to sell certain assets (the Sale Process or the Offering) and
to solicit formal expressions of interest (the Proposals) from Interested
Parties.

TD Securities
421 - 7th Avenue S.W., 36th Floor
Calgary, Alberta T2P 2Z2
F: 403 292 2776

The offering will be separated into five packages ( Southeast Saskatchewan


/ Manitoba, Southwest Saskatchewan, Viking / Greater Coleville, Central
Alberta, and Southern Alberta). While the preference will be to complete
an en bloc transaction, Interested Parties will have the opportunity to bid
on single packages or any combination thereof.
It is the intention of Penn West and TD Securities to conduct the Sale
Process such that it minimizes any disruption to Penn Wests operations.
Interested Parties should not contact Penn West directly regarding any
aspect of the Process.
Data Room access may be obtained upon executing and submitting a
Confidentiality Agreement via email to the attention of Taso Arvanitis
(taso.arvanitis@tdsecurities.com). All other inquiries, communications or
additional information requests related to the Process should be directed
to one of the following individuals at TD Securities.

Rodrigo Sousa
Managing Director
T: 403 503 4851
rodrigo.sousa@tdsecurities.com

Robert Mason
Managing Director
T: 403 292 1282
robert.mason@tdsecurities.com

Mark Kuhn
Managing Director
T: 403 503 4852
mark.kuhn@tdsecurities.com

Alan Cooper
Vice President
T: 403 299 7918
alan.cooper@tdsecurities.com

Ruben Contreras
Director
T: 403 503 4853
ruben.contreras@tdsecurities.com

Matthew Rachiele
Vice President
T: 403 292 1285
matthew.rachiele@tdsecurities.com

Timing
Pre-marketing Teaser Distribution: February 2, 2015
Virtual Data Room Open: February 9, 2015
Bid Date: March 10, 2015; 12:00 PM MDT

TD Energy Advisors

MINERAL TITLE LAND AND ROYALTY OFFERING

PENN WEST PETROLEUM LTD.

Disclaimer
This document was prepared solely for informational purposes and is being provided to assist prospective purchasers in considering their interest in acquiring certain assets of Penn West
Petroleum Ltd. (the Company). The Company has retained TD Securities Inc. (TD Securities) as its exclusive financial advisor in connection with this transaction. By accepting this
document, the recipient acknowledges that it has read, understood and accepted the terms of this notice.
This document is not intended to form the basis of any investment decision and does not constitute an offer, solicitation, advertisement, recommendation or invitation for the sale or
purchase of securities or any of the business assets described herein. This document is not and under no circumstances is to be construed as (i) a prospectus, a public offering or an
offering memorandum, or (ii) a report, statement or opinion of an expert, each as defined under applicable securities laws. This document contains information that may constitute
undisclosed material facts within the meaning of applicable securities laws and the recipient should be aware of its obligations under applicable securities laws resulting from the receipt
of such information.
Nothing in this document should be construed as giving legal, investment or other advice of any kind. The recipient should consult its own professional advisors as to legal, tax and
related matters concerning an acquisition of certain assets of the Company. This document is intended only for persons reasonably believed to be sufficiently expert to understand the
risks involved. The recipient should conduct its own investigation, analysis and evaluation of these assets.
The information in this document, which does not purport to be comprehensive and does not include all of the information that a prospective purchaser may require, has been provided
by the Company and other sources and has not been independently verified by TD Securities. Any estimates and projections contained herein are for illustrative purposes only and
are based on numerous assumptions that are subject to significant risks and uncertainties and may prove to be incomplete or inaccurate. The information contained herein must be
considered as a whole and selecting portions of the analyses without considering all of the factors and analyses together, could create a misleading view of the presentation. The
preparation of a document such as this is complex and is not necessarily susceptible to partial analysis or summary description. Any attempt to do so could lend to undue emphasis on
any particular factor or analysis.
None of the Company, TD Securities or any of their respective affiliates, directors, officers, employees, shareholders, agents, representatives, consultants or advisors (collectively, their
Representatives), makes any representations or warranties, express or implied, as to the accuracy or completeness of this document or any other written or oral information made
available (collectively, the Information). None of the Company, TD Securities or any of their respective Representatives accepts any responsibility or liability in relation to the accuracy
or completeness of the Information, errors therein or omissions therefrom, and any liability therefor is hereby expressly disclaimed. The recipient shall be entitled to rely solely on the
representations and warranties, if any, made to it in any definitive purchase agreement when and if one is executed. The recipient is responsible for satisfying itself as to the accuracy
and completeness of all Information.
The Company and TD Securities reserve the right to amend or replace this document at any time but have no obligation to do so. None of the Company, TD Securities or their respective
Representatives undertakes any obligation to (i) update or otherwise revise or correct any inaccuracies which become apparent in the Information, or (ii) provide the recipient with access
to any additional information. This document shall not be deemed an indication of the state of affairs of the Company nor shall it constitute an indication that there has been no change
in the business or affairs of the Company since the date hereof. Nothing herein is or should be relied upon as a promise or representation as to the future.
The Company reserves the right to: (i) negotiate with one or more persons at any time and to enter into a definitive purchase agreement without prior notice to the recipient or any other
person; (ii) terminate further participation in the investigation and proposal process by any person; (iii) request the return of this document and any other Information provided to the
recipient; and (iv) modify any procedures relating to this process without assigning any reason therefor. The issuance of this document shall not be taken as any form of commitment or
obligation on the part of the Company or TD Securities to proceed with any transaction.
All communications, inquiries and requests for information relating to this document should be addressed only to TD Securities, as representative of the Company. The management or
other employees of the Company should not be contacted either directly or indirectly.
The recipient agrees with the Company that it will not use this document or any other Information for any purpose other than considering its interest in acquiring certain assets of the
Company. The recipient further agrees that it will not copy or reproduce in any electronic or physical form or distribute, communicate, disclose or otherwise make available in whole or in
part to any other person this document or any other Information, including without limitation the information that the Company is considering the transaction contemplated herein. This
document, as well as any other Information that subsequently may be provided by the Company, TD Securities or their respective Representatives, and any copies of such Information,
is to be returned or destroyed promptly upon request by the Company, TD Securities or their respective Representatives.

TD Energy Advisors