2010-08-31-2010-08-24-2010-09-24

Closed purchase in Cordova Embayment area and and certain conventional gas assets in Wildboy area, gaining 50% WI in 550,000 gross acres of land.

A subsidiary of Mitsubishi Corp., Tokyo, (Tokyo: 8058) has closed its 50-50 joint venture with Penn West Energy Trust, Calgary, (Toronto: PWT-UN; NYSE: PWE) to develop Penn West's shale gas assets in northeastern British Columbia in a deal valued at US$850 million.

Mitsubishi paid US$250 million to acquire its share of the properties and US$600 million to fund E&P and capex.

The assets are primarily in shale gas properties in the Cordova Embayment area and certain conventional gas assets in the Wildboy area. Mitsubishi will gain a 50% working interest in assets which include a total 550,000 gross acres of land (225,000 net to Mitsubishi), including approximately 120,000 acres targeting shale gas in the Cordova Embayment, the Wildboy gas-processing facility, a sales-gas pipeline connecting the area to the TransCanada gathering system in Alberta, and associated infrastructure.

Production from the Wildboy assets is approximately 30 million cubic feet of gas per day.

Penn West reports the joint venture will accelerate the exploration and development of its unconventional gas asset.