060810 Agm Calgary 000

Annual General MeetingCalgary, AlbertaJune 8, 2010

This presentation is for information purposes only and is not intended to, and should not be construed to, constitute an offer to sell or the solicitation of an offer to buy securities of Penn West.

Discovered Petroleum Initially‐In‐Place (DPIIP) is equivalent to Original Oil In Place (OOIP). DPIIP, also known as a "discovered resource", is defined as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially‐in‐place includes production, reserves and contingent resources; the remainder is unrecoverable. A recovery project cannot be defined for this volume of discovered petroleum initially‐in‐place at this time. There is no certainty that it will be commercially viable to produce any portion of the resources.

Certain information regarding Penn West Energy Trust and the transactions reviewed in this presentation including management’s assessment of future plans and operations, may constitute forward‐looking statements under applicable securities law and necessarily involve risks, including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions and ability to access sufficient capital from internal and external sources; failure to obtain required regulatory approvals. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Penn West’s operations or financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at Penn West’s website (www.pennwest.com).

This presentation and its contents should not be construed, under any circumstances, as investment, tax or legal advice. Any person accepting delivery of this presentation acknowledges the need to conduct their own thorough investigation into Penn West before considering any investment in its securities. Furthermore, the forward‐looking statements contained in this presentation are made as of the date of this presentation, Penn West does not undertake any obligation to update publicly or to revise any of the included forward‐looking statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities law.

Where reserves or production are stated on a barrel of oil equivalent (BOE) basis, natural gas volumes have been converted to a barrel of oil equivalent (BOE) at a ratio of six thousand cubic feet of natural gas to one barrel of oil. This conversion ratio is based upon an energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOEs may be misleading, particularly if used in isolation.

This presentation may contain references to non‐GAAP terms. Penn West uses these measures to help evaluate their respective performance. These measures as presented do not have any standardized meaning prescribed by Canadian GAAP and therefore, they may not be comparable with calculations of similar measures for other companies or trusts.

All references are to Canadian Dollars unless otherwise specified.

Advisory

2

• Restoring financial strength

• Empowering corporate responsibility

• Building the right team

• Focusing on prospects,

innovation, and potential

Setting the Course for the Future

3


4

• Strong Balance Sheet

- June 2008 - $4.8 total debt - 77% short term

- June 2010 - $2.5 total debt - 36% short term

• Debt diversification- 64% of debt in long term notes

• Credit capacity- 3 year, $2.25 billion syndicated credit facility

- $1.75 billion undrawn

Financial Strength

5

* Pro Forma debt at March 31, 2010 net of equity private placement and funds received from the formation of the Peace River Oil Partnership announced May 13, 2010.** On April 30, 2010 Penn West Petroleum Ltd. Closed the renewal of its unsecured revolving syndicated bank facility.*** All debentures expire prior to December 31, 2011 and can be settled with equity.

Credit Capacity

$1.75 billionundrawn**

$500 million drawn*

Total Debt

PrivateDebt$1.6

billionConvertibleDebentures***$273 million

Bank Debt$0.5 billion



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• CAPP Stewardship Platinum level since 2002

• Strong and respectful working relationship with First Nations and Métis in western Canada

• Leader in CO2 capture and storage in North America

• Leader in Enhanced Oil Recovery in North America

• Actively engaged in our communities

Corporate Responsibility


7

Management Team

• Revitalized management team over the past three years:

• Strengthened technical teams & assembled a visionary exploration group

• Team has worked to ‘right-size’ portfolio after successive corporate acquisitions and are now focused on concentrated play areas

Murray NunnsPresident and Chief Operating Officer

David MiddletonExecutive Vice President, Peace River Project, Managing Director

Todd TakeyasuExecutive Vice President & Chief Financial Officer

Hilary FoulkesSenior Vice President, Business Development

Mark FitzgeraldSenior Vice President, Production

Thane JensenSenior Vice President, Operations Engineering

Keith LuftGeneral Counsel & Senior Vice President, Stakeholder Relations

Bob ShepherdSenior Vice President, Exploration & Development


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• Capital budget of $700 to $800 million necessary to maintain current production levels

• Focus funds to increase pace of development in key play areas – anticipate $150 to $200 million for organic growth

• Timing for conversion at year-end 2010

• Set dividend with objective to remain within funds flow for sustaining capital, growth capital and dividend

• Fine tune model for 2011 and provide guidance for capital plans during Q4 2010

Conversion

Focus on ProspectsCalgary, AlbertaJune 8, 2010

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producer of light & medium oil in western Canada

#

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Significant Light Oil PotentialSignificant Light Oil Potentialmillion acres

Oil Gas BOEProved 341 mmbbls 938 bcf 497 mmboe

Proved and Probable 472 mmbbls 1,292 bcf 687 mmboe

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%Proved OilReserves

VerticallyBooked

95%

Permian BasinOdessa, Texas5 acre well spacing

Horizontal Technology

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U.S. vs. Canadian Field Development

Pembina CardiumDrayton Valley, Alberta

80 acre well spacing

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AdvantageInfrastructure

Strategic Portfolio Management

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Peace RiverOil Sands

Wildboy

Eastern Alberta

Penn West land position

Cardium

WaskadaDodsland

North CentralCarbonates

Prospect Inventory

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Light Oil

Gas

Oil Sands

Cumulative Resource

Production

14%

2%

0%

Discovered Petroleum Initially in Place (DPIIP), is defined in the COGEH handbook as the quantity of hydrocarbons that are estimated to be in place within a known accumulation. DPIIP is divided into recoverable and unrecoverable portions, with the estimated future recoverable portion classified as reserves and contingent resources. There is no certainty that it will be economically viable or technically feasible to produce any portion of this DPIIP except for those identified as proved or probable reserves. At this time all of the DPIIP not classified as reserves would be classified as Unrecoverable Resources.

OOIP / OGIP

8.5 B bbls

18 Tcf

2.75 B bbls

Incremental

Recovery

85 million bbls

180 Bcf

27.5 million bbls

1%

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Unlocking Oil in Place

CardiumWest Central Alberta

West Central AB - Cardium

bbls OOIP10 billion

wells (net)2,400

current production~25,000 boe/d

880 sections (net)

1.6 billion bbls recovered to date

2 – 5 billion bbls potentialOOIP additions

18Penn West land

Pembina

WillesdenGreen

WestPembina

Leafland

Garrington

Strachan

Ferrybank

BuckLake

Vertically definedpool boundary

Cardium trend

20 miles

30 kms

Program Summary

Cardium Land Holding – Existing

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Source: Company reports, Scotia Capital estimates.

530

0

100

NetSections

200

300

400

500

204160150150150

100 95 92 81 75 66 52 49 47 40 40 38 30 23 19 17 17 9 8

600

700

800

PennWest

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

880

+ Halo


Light Oil Resource Plays

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Cardium

net sections880 wellinventory2,000 +

50 2010 net wells



21

Cardium

Waskada

net sections125 wellinventory1,000

60 2010 net wells



22

Dodsland

Cardium

Waskada

net sections280 wellinventory1,000

70 2010 net wells



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DevonianCarbonates

Cardium

Dodsland Waskada

net sections300 wellinventory200 +

25 2010 net wells

Gas Resource Plays

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Wildboy

Eastern Alberta

Unlocking Oil in Place

Peace RiverCentral Alberta

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Peace River Oil Partnership

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current production2,700 boe/d

stratigraphic wells70

hz wells84

237,000 acres

Program Summary

5 miles

10 kms

Joint Venture Partnership land

T82

T86

T80

T84

R14W5R16R18R20R22

Nampa

Seal North

Cadotte

Harmon Valley

Harmon ValleyWest

Harmon ValleySouth

Seal Main

current production2,700 boe/d

stratigraphic wells70

hz wells84

237,000 acres


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Penn West contributes:• 106,650 acres (45% of 237,000 acres)

• 1,215 boe/d (45% of 2,700 boe/d)

• $56 million go forward investment (10% of PWT’s 55% interest)

Partner contributes:

• $312 million cash (paid to PWT directly)

• $505 million go forward investment (90% of PWT’s 55% interest)

• $459 million capital (45% interest)

Key Points


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Strategic Rationale

• Establish key technical and financial relationship

• Increase pace of development

(primary and thermal)

• Operate Peace River as a stand alone project

reflecting its uniqueness in Penn West

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YieldGrowth

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To All StakeholdersFairness

Total Shareholder

Return

Penn West Total Return vs. Indices

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2009 – 2010 (18 months)

2009 2010

-40%

-20%

0%

20%

40%

60%

80%

100%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May

Penn WestS&P/TSX Capped Energy TrustS&P/TSX Capped EnergyS&P/TSX 60S&P/TSX Composite

Stock ExchangeToronto: PWT.UNNew York: PWE

Legal CounselBurnet, Duckworth & Palmer LLP

Independent Reserves EvaluatorsGLJ Petroleum Consultants Ltd.Sproule Associates Limited

Transfer AgentCIBC Mellon Trust CompanyToll Free: 1-800-387-0825Email: [email protected]: www.cibcmellon.ca

Investor RelationsJason Fleury, Manager, Investor RelationsTelephone: (403) 539-6343Email: [email protected]

Toll Free: 1-888-770-2633Email: [email protected]: www.pennwest.com

Penn West EnergySuite 200, 207 – 9th Avenue SWCalgary, Alberta, Canada T2P 1K3Telephone: (403) 777-2707Toll Free: 1-866-693-2707Facsimile: (403) 777-2699Website: www.pennwest.com

060810 Agm Calgary 000

Business

bank debt

future credit capacity

future events

financial results

syndicated credit facility

peace river oil partnership

north america leader

enhanced oil recovery