Penn West Petroleum Ltd. (PWE, PWT.TO) announced that Murray Nunns, President and Chief Executive Officer, has informed the board of his intention to retire effective July 1, 2013. Concurrent with his departure, Nunns will also be resigning from board of directors.
The company appointed David Roberts, former Executive Vice President and Chief Operating Officer of Marathon Oil Corporation, as President and Chief Executive Officer commencing June 19, 2013. The board intends to appoint Roberts to the board on commencement of his employment. Dave brings more than 30 years of operational experience in the upstream oil and gas business.
Under new Board and new CEO, the company said it will focus on operating the business in a more efficient manner, significantly reducing General and Administrative expenses and field operating costs. The company will focus its efforts on execution across the board, maximizing the use of its mid-stream assets and improving the netbacks it receives on each barrel produced.
The company said that it will be reviewing all staffing levels and expects to start by reducing staffing levels by 10 percent over the next few weeks.
Penn West stated that its board will form a Special Committee to explore strategic alternatives. The Special Committee will consider all alternatives to increase shareholder value, including strategic financing alternatives, asset divestments, joint ventures and/or other business combinations.
Penn West also announced that its board has approved a change to its dividend. Effective for its third quarter, Penn West's quarterly dividend will be reduced to $0.14 per common share from $0.27 per common share.
Penn West confirms that its full year production and capital guidance remain unchanged.
by RTT Staff Writer
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