Calgary, Alberta – Calgary-based Penn West Energy has entered a joint venture with the China Investment Corporation (CIC) to develop bitumen assets in the Peace River area of northern Alberta.

Penn West said that the venture will provide for the development from the current resource appraisal phase through to commercial-scale development and production.

The joint venture will be organized as a general partnership under provincial laws, and involves approximately 237,000 net acres of oil sand leases that Penn West believes contain significant bitumen resources, along with current production of approximately 2,700 barrels of oil equivalent per day of bitumen and associated gas. CIC will invest a total of $817 million to acquire a 45 per cent interest in the partnership.

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