2010-06-09-2010-06-02-2010-06-02

Purchased 45% stake in bitumen assets in Peace River area of northern Alberta, gaining 2,700 BOE/d.

China Investment Corp. has purchased a 45% stake in bitumen assets in the Peace River area of northern Alberta from Penn West Energy Trust, Calgary, (Toronto: PWT; NYSE: PWE) for $817 million.

Penn West will retain a 55% interest in the joint-venture properties, comprising approximately 237,000 net acres of oil-sands leases valued at $1.8 billion. Current production is 2,700 barrels of oil equivalent per day of bitumen and associated gas. An affiliate of Penn West will operate the assets.

China Investment Corp. has paid $312 million to Penn West to satisfy the company's debt and has committed an additional $505 million to carry a portion of Penn West's capital and operating expenses.

Additionally, an affiliate of China Investment Corp. has purchased approximately 23.5 million Penn West trust units on a private-placement basis for aggregate proceeds of $435 million. Penn West will use $747 million from the proceeds to pay general corporate expenses.

Mackie Research Capital Corp. was advisor to Penn West.