(Adds details and background)
May 1 Canadian oil and gas producer Penn West
Petroleum Ltd reported a 5 percent fall in gross
revenue after production decreased 22 percent.
Gross revenue, which includes realized gains and losses on
commodity contracts, fell to C$668 million ($608 million) in the
quarter ended Mar. 31 from C$704 million a year earlier.
Net loss narrowed marginally to C$96 million from C$97
million but was flat at 20 Canadian cents on a per-share basis.
Operating expenses fell 19 percent.
Total production fell to 110,795 barrels of oil equivalent
per day (boe/d).
The company maintained its 2014 average production forecast
of 101,000-106,000 boe/d.
Penn West is one of Canada's largest conventional oil
producers with around 5 million acres of exploration land in
Western Canada and 625 million barrels of reserves.
Penn West's funds flow, a key measure of its ability to pay
for new projects and drilling, rose 4.5 percent to C$279
million, or 57 Canadian cents per share, from C$267 million, or
55 Canadian cents per share, a year earlier.
The company's shares have dropped by more than half since
the start of 2012 as production declined. Its rich dividend
payouts drained the cash needed to boost output.
Last year the company named a former Marathon Oil Corp
executive David Roberts as CEO and said it would slash
its dividend, cut 10 percent of its staff and review strategic
options such as asset sales and joint ventures.
($1 = 1.0975 Canadian Dollars)
(Reporting by Ashutosh Pandey in Bangalore; Editing by Don