Canada –More than 100 Penn West (TSX:PWT) (NYSE:PWE) staff, their families, the families of contract personnel, local and First Nation communities have been directly impacted by the fires in northern Alberta. We are making every effort individually and corporately to meet the needs of these families as they cope with recent events. Penn West encourages the public and the corporate community to assist the efforts of organizations such as the Red Cross and Salvation Army in providing food, water, clothing and shelter to those who were evacuated from their homes due to the wildfires. We are also endeavoring to assist firefighters and support teams with needed supplies and we greatly appreciate their tremendous effort to control the wildfires and prevent new outbreaks.
The Utikima, Otter, Slave and Ogsden fields remain in active wildfire zones. To date, Penn West’s fire suppression and facility shutdown efforts appear to have mitigated fire damage to our production infrastructure; however, these are preliminary indications only and a thorough site assessment must be completed before the full extent of damage can be determined. Production in these areas has been and will continue to be shut-in while the fires are brought under control. Damage assessments are underway in the Red Earth and Mitsue fields and production has been resumed at East Swan Hills and Crimson Lake. In addition to RCMP and government road blocks, Penn West has imposed an emergency-only traffic ban for all Penn West staff and contractors in these areas to allow firefighting equipment and supplies 24-hour access.
Local and provincial authorities continue to assess and determine areas safe for access. Penn West teams will enter each affected operating area to determine, on an area by area basis, the nature and extent of any damage and estimated timelines for production resumption in accordance with Penn West’s existing production resumption protocols.
Penn West routinely reviews and monitors risk management policies and procedures, and as a result of our risk assessment process, we maintain loss and business interruption insurance with coverage levels in accordance with customary industry practice. Penn West’s insurers have been notified of the situation in the Slave Lake area and they are continuing to monitor these areas closely.