Pengrowth Reports Third Quarter Results, Strong Production and Continued Progress on Thermal Strategy
CALGARY, ALBERTA--(Marketwired - Nov. 7, 2013) - Pengrowth Energy Corporation (TSX:PGF) (NYSE:PGH) today announced its financial and operating results for the third quarter and first nine months of 2013.
During the quarter, Pengrowth delivered on its stated objectives of fully funding the first commercial phase of its Lindbergh thermal bitumen project by divesting over $700 million of non-core assets and achieving solid operational results.
Pengrowth's non-core asset disposition program has generated total proceeds of over $1.0 billion so far this year and is now essentially complete. In total, Pengrowth sold approximately 14,500 barrels of oil equivalent per day (boe/d) of production at an average price of approximately $70,000 per flowing barrel. As at September 30, 2013, Pengrowth had approximately $580 million of cash on hand and expects to use these proceeds to balance cash inflows and outflows through the course of 2013 and 2014, while investing to bring the first 12,500 barrel per day (bbl/d) commercial phase of Lindbergh on stream.
Production from the conventional program continued to be robust during the quarter, even after taking into account the impact of asset dispositions. The Lindbergh pilot is delivering strong results, with the two well pairs producing a combined average of 2,000 bbl/d during the quarter at an average quarterly Instantaneous Steam Oil Ratio (ISOR) of 1.8x.
"The asset dispositions completed during the first nine months of the year provide us with the funds to build the first phase of Lindbergh, which supports Pengrowth's transition to an oilier, lower decline production mix, bolstered by thermal bitumen production," said Derek Evans, Pengrowth's President and CEO. "Lower decline production results in lower sustaining capital expenditure and greater free cash fl