Pengrowth Energy Corporation Announces Acquisition of Additional Lochend Cardium Assets
CALGARY, ALBERTA--(Marketwire - Nov. 6, 2012) - Pengrowth Energy Corporation (TSX:PGF) (NYSE:PGH) is pleased to announce that it has acquired additional Lochend Cardium assets with production capability of approximately 650 boe/d, weighted 95 percent to light oil.
The assets acquired complement and consolidate Pengrowth's position in the Alberta Lochend Cardium light oil resource play, bringing the company's Lochend Cardium land holdings to 44 net sections. The assets will provide Pengrowth with high-netback oil production and solidify the company's dominant position within the play and increase its inventory of drill ready locations to approximately 105.
Key attributes of the Cardium assets acquired:
•Current production capability of 650 boe/d and netbacks of approximately $59/boe
•11 (10.3 net) sections of land in the most productive part of the Cardium fairway
•Offsetting analog bookings between 150,000 and 250,000 boe per well.
"I'm excited about this transaction, which allows us to consolidate assets in one of our main operating areas," said Derek Evans, President and CEO of Pengrowth Energy Corporation. "The acquired assets increase our land position in the defined high deliverability Cardium fairway and provide additional access to infrastructure in the area."
The acquisition closed on November 2, 2012 with an effective date of October 1, 2012