# Penn West Petroleum



## Grahamfollower (Jan 18, 2015)

Hello all, 

I have a quick question for you. Penn West is trading at a really low book value. I'm just curious, lets say that oil stays low for the next couple years and the company is no longer able to pay its debt, what is the process? I mean, if I bought in at 2.00 a share, and the book value is around 10.00 a share, what happens? I think liquidation value is ((total assets - (intagibles+current assets+preferred stock+total liabilities))/shares outstanding. 
I guess what I'm asking is, even if PWT can no longer pay its debt and is liquidated, aren't the real assets on hand still enough to make it an acceptable purchase at the moment? 

thanks


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## daddybigbucks (Jan 30, 2011)

If you had a lambourgini that you bought for 150,000 and it depreciates 10% per black book every year.
After 5 years that lambo should be worth 88,573 according to your books.

you cant make your payments anymore so you list it on kijiji.ca.

you don't get anybody interested in buying it. What does the bank do?

I saw this happen to Opti that had a book value of ~$5/share and I think it finally sold for 15 cent a share.


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