Canadian intermediate oil producer Penn West Petroleum (PWE) shocked the market and industry insiders when it closed a groundbreaking deal to divest itself of its Saskatchewan assets, giving it sufficient funds to erase a considerable slab of its company destroying debt. Even after completing this surprising deal, the market remains highly pessimistic about the outlook for Penn West and its share price has only lifted by 28% over the last three months. There are a range of reasons for this with the new look Penn West experiencing a considerable reduction in oil reserves, which, in conjunction with lower crude, will see a sharp fall in the net-present value of its reserves. It will also experience a marked reduction in oil production which will see cash flows fall. These factors indicate that the new look Penn West is fairly valued by the market, and that there may be some limited upside available if the oil's rally persists. Let's take a closer look at the new Penn West and try to identify whether it is a worthwhile investment.