13D Filing: FrontFour Capital Group and Penn West Petroleum Ltd. (PWE)

The Reporting Persons
purchased the securities of the Issuer reported herein based on their belief that such securities, when purchased, were undervalued
and represented an attractive investment opportunity.

The Reporting Persons
delivered a letter to the Board of Directors of the Issuer (the “Board”) on October 5, 2017, and subsequently entered
into discussions with members of the Board and management related to the Issuer’s strategy and Board composition. The Reporting
Persons may continue to enter into discussions with the Board and reserve all rights to take any and all action with respect to
their investment in the Issuer.

The Reporting Persons
believe that the Shares currently trade at a significant discount to intrinsic value and do not reflect the value inherent in the
Issuer’s unparalleled acreage position in the Cardium, significant upside in the Mannville, infrastructure advantaged position
in the Alberta Viking and valuable tax pool position. In order to unlock this value, the Reporting Persons intend to communicate
with the Issuer’s management and Board about a broad range of strategic and operational matters. The Reporting Persons also
intend to review their investment in the Issuer on a continuing basis and may from time to time in the future express their views
to and/or meet with management, the Board, other shareholders or third parties, and/or formulate plans or proposals regarding the
Issuer, its assets or its securities. The Reporting Persons may exchange information with any such persons pursuant to appropriate
confidentiality or similar agreements.

No Reporting Person
has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) – (j) of
Item 4 of Schedule 13D except as set forth herein or such as would occur upon or in connection with completion of, or following,
any of the actions discussed herein. The Reporting Persons may consider, explore and/or develop plans and/or make proposals with
respect to, or with respect to potential changes in, the operations, management, the articles and bylaws, Board composition, ownership,
capital or corporate structure, capital allocation, dividend policy, strategy and plans of the Issuer, potential strategic transactions
involving the Issuer or certain of the Issuer’s businesses or assets, or may change their intention with respect to any and
all matters referred to in Item 4.

Depending upon overall
market conditions, other investment opportunities available to the Reporting Persons, and the availability of securities of the
Issuer at prices that would make the purchase or sale of such securities desirable, the Reporting Persons may endeavor (i) to increase
or decrease their respective positions in the Issuer through, among other things, the purchase or sale of securities of the Issuer
on the open market or in private transactions, including through a trading plan created under Rule 10b5-1(c) or otherwise, on such
terms and at such times as the Reporting Persons may deem advisable and/or (ii) to enter into transactions that increase or hedge
their economic exposure to the Shares without affecting their beneficial ownership of Shares.

(a)
The aggregate percentage of Shares reported owned by each person named herein is based upon 504,328,913 Shares outstanding
as of November 9, 2017, which is the total number of Shares outstanding as reported in the Issuer’s Form 6-K filed with the
Securities and Exchange Commission on November 13, 2017.