Pengrowth Closes $510 Million Sale Of South Saskatchewan Assets
Acquired non-core southeast Saskatchewan assets consisting 5,700 BOE/d with 93% liquids.
Pengrowth Energy Corp. (NYSE: PGH; TO: PGF) closed the divestiture of its non-core southeast Saskatchewan assets, effective June 1, for $510 million.
The assets sold had production of 5,700 barrels of oil equivalent per day (BOE/d) with 93% liquids and proved plus probable reserves of 21.3 million barrels assigned to them at Dec. 31, 2012, according to the independent reserve evaluators GLJ Petroleum Consultants Ltd.
Including this transaction, by Sept. 30, Pengrowth expects to have sold $1 billion of non-core assets in 2013.
"We are pleased to have achieved the goal we set for ourselves in January of this year - to dispose of up to $1 billion of non-core assets so as to ensure that funding was in place by year-end to develop the first 12,500 bbl/d phase of our Lindbergh thermal project by year-end," Derek Evans, Pengrowth's president and CEO, said in the release. "Being able to execute a successful disposition program in today's market environment puts us firmly on the path to bring the first commercial phase of Lindbergh on production by the end of next year, which offers the exciting prospect of growing, profitable, low decline, long reserve life oil production production."
Pengrowth Energy Corp. engages in the acquisition, exploration, development, and production of oil and natural gas reserves in Canada. The company is headquartered in Calgary.