10/17/2012 06:48 EDT | Updated 12/17/2012 05:12 EST

Penn West has agreed to sell $1.3 billion worth of non-core properties

CALGARY - Penn West Petroleum Ltd. (TSX:PWT) has agreed in principle to sell $1.3-billion worth of its non-core properties, representing the equivalent of 12,000 barrels per day of production.

The Calgary-based company says it will use funds from the sale to repay a portion of the money drawn on its credit facilities.

Penn West didn't specify the location of the assets to be sold, or the buyers, but said it expects the dispositions will close before Dec. 31.

The company has been positioning itself to concentrate on light-oil plays, particularly along the Cardium formation in southern Alberta.

Its shares were up 23 cents at $13.89 on the Toronto Stock Exchange at mid-morning.