BOSTON, July 30, 2014 /PRNewswire/ -- Shares in Penn West Petroleum Ltd. ("Penn West" or the "Company") (NYSE: PWE) have plunged more than 13% on news the Company has initiated an Audit Committee review of its accounting practices and that "certain of the Company's historical financial statements and related management's discussion and analysis ("MD&A") must be restated, which may result in the release of second quarter 2014 financial results being delayed." As the result of this Audit Committee review, it appears that Penn West will restate at least four years of their previously reported financials.
According to industry sources, the Audit Committee's review arises from accounting practices that came to the attention of Penn West's new Senior Vice President and Chief Financial Officer, David Dyck, who assumed that position on May 1, 2014. Specifically, the Audit Committee and its independent advisors are examining certain entries which appear to have been made to reduce operating costs and increase the Company's reported capital expenditures and royalty expense, and that appear to have been made without adequate supporting documentation. The accounting practices under review involve the capitalization of certain operating costs as property, plant and equipment, the income statement classification of certain costs and credits, and the timing of certain accruals relating to production, operating costs and capital. The review currently covers 2014 and the four previous fiscal years.
Block & Leviton LLP is investigating the Company and certain of its officers and directors to determine how widespread any potential accounting violations extend and whether any insiders at the Company personally profited by the alleged accounting improprieties.
If you purchased Penn West stock and have questions about your legal rights, or if you have information relevant to this investigation, please contact attorney Mark Delaney of Block & Leviton LLP at (617) 398-5600 or at Mark@blockesq.com. Confidentiality to any whistleblowers or other persons with information relevant to the investigation is assured.
Block & Leviton is a Boston-based law firm representing investors for violations of securities laws. The firm's lawyers have collectively been prosecuting securities cases on behalf of investors for over 70 years.
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BLOCK & LEVITON LLP
Mark Alan Delaney
SOURCE Block & Leviton LLP