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

(b)
Each of the Master Fund, FrontFour Capital and Messrs. Loukas, Lorber and George have shared power to vote or direct the
vote of, and to dispose or direct the disposition of, the Shares owned directly by the Master Fund.

Each of FrontFour
Capital and Messrs. Loukas, Lorber and George have shared power to vote or direct the vote of, and to dispose or direct the disposition
of, the Shares held in the Separately Managed Accounts.

Each of the Canadian
Fund, FrontFour Corp. and Messrs. Loukas, Lorber and George have shared power to vote or direct the vote of, and to dispose or
direct the disposition of, the Shares owned directly by the Canadian Fund.

Each of the Energy
Fund, Energy Fund GP and Messrs. Loukas, Lorber and George have shared power to vote or direct the vote of, and to dispose or direct
the disposition of, the Shares owned directly by the Energy Fund.

Mr. Loukas has the
sole power to vote or direct the vote of, and to dispose or direct the disposition of, the Shares owned directly by him.

Mr. Lorber has the
sole power to vote or direct the vote of, and to dispose or direct the disposition of, the Shares owned directly by him.

(c)
The transactions in the securities of the Issuer effected by the Reporting Persons during the past 60 days are set forth
on Schedule B attached hereto. All of such transactions were effected in the open market except as otherwise set forth therein.

(d)
No person other than the Reporting Persons is known to have the right to receive, or the power to direct the receipt of
dividends from, or proceeds from the sale of, the Shares.

(e)
Not applicable.

Item 6.

Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.

On the date hereof,
the Reporting Persons entered into a Joint Filing Agreement in which the Reporting Persons agreed to the joint filing on behalf
of each of them of statements on Schedule 13D with respect to securities of the Issuer. A copy of this agreement is attached hereto
as Exhibit 99.1 and is incorporated herein by reference.

The Master Fund has
(a) purchased call options (i) referencing an aggregate of 811,600 Shares, which have an exercise price of $1.10 per Share and
expire on May 18, 2018, (ii) referencing an aggregate of 811,300 Shares, which have an exercise price of $1.15 per Share and expire
on May 18, 2018, and (iii) referencing an aggregate of 688,300 Shares, which have an exercise price of $1.20 per Share and expire
on May 18, 2018, and (b) sold short put options (i) referencing an aggregate of 1,622,900 Shares, which have an exercise price
of $0.85 per Share and expire on May 18, 2018, and (ii) referencing an aggregate of 688,300 Shares, which have an exercise price
of $1.05 per Share and expire on May 18, 2018.

The Canadian Fund
has (a) purchased call options (i) referencing an aggregate of 19,500 Shares, which have an exercise price of $1.10 per Share
and expire on May 18, 2018, (ii) referencing an aggregate of 19,800 Shares, which have an exercise price of $1.15 per Share and
expire on May 18, 2018, and (iii) referencing an aggregate of 16,700 Shares, which have an exercise price of $1.20 per Share and
expire on May 18, 2018, and (b) sold short put options (i) referencing an aggregate of 39,300 Shares, which have an exercise price
of $0.85 per Share and expire on May 18, 2018, and (ii) referencing an aggregate of 16,700 Shares, which have an exercise price
of $1.05 per Share and expire on May 18, 2018.