Penn West Petroleum Ltd. intends to draw on business interruption insurance following wildfires, floods in Western provinces

An official from Penn West Petroleum Ltd. has said the company expects to draw on its business interruption insurance after taking a cash flow hit of between $60 million and $70 million following the wildfires still blazing in northern Alberta, according to a report in the Wall Street Journal.
The amount of damage due to the wildfires is not expected to have any major impact on the company’s earnings guidance, the Wall Street Journal reported, based on comments made at a conference by the company’s chief operating officer.
In a public statement, Penn West said approximately 35,000 barrels of oil per day of production had been interrupted by the wildfires in northern Alberta, as well as by flooding in Saskatchewan and Manitoba.
The company’s Utikima, Otter, Slave and Ogsden fields remain in active wildfire zones. The extent of damage to these operations is still being assessed.
Meanwhile, in southern Manitoba and portions of southern Saskatchewan, “high water conditions continue to impede operational activities,” Penn West announced in a press release. “A portion of production volumes in these areas has been restored and the remaining volumes should be restored as conditions permit.”