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Pengrowth Energy hits $700M disposition target for Lindbergh project

Pengrowth Energy announced that it has entered into agreements for the successful completion of its $700M non-core asset disposition program previously announced on January 11. The net proceeds from the disposition program will be used to fund ongoing capital expenditures, including fully funding the remaining budgeted capital expenditures associated with the 12,500 barrels per day first commercial phase of the Lindbergh thermal project, which received regulatory approval on July 15. The expected net proceeds from these non-core asset dispositions, in addition to the $316M net proceeds received from the previously announced Weyburn non-core asset divestiture in March of this year, will bring total 2013 non-core disposition proceeds to approximately $1B. On a pro-forma basis, following these transactions, Pengrowth is now projecting Q4 production to average between 75,000-77,000 boe/d.