Pengrowth Energy Corporation (TSX:PGF)(NYSE:PGH) today announced that it has entered into an agreement for the sale of its non-producing Montney lands at Bernadet in North East British Columbia for cash consideration of $92 million.
The Bernadet asset encompasses 36.6 sections (100 percent working interest) of land with no associated production, cash flow and neither reserves or resources assigned to it in Pengrowth’s December 31, 2016 year-end reserve report.
The sale further enhances the Company’s strategy to de-lever its balance sheet and provide additional financial flexibility to pursue development of Pengrowth’s remaining core growth assets.
Derek Evans, President and Chief Executive Officer of Pengrowth commented, “We believe this transaction provides a compelling opportunity to realize value on an asset that has no associated production or cash flow and will allow us to further deleverage our balance sheet. We continue to be active in the Montney through our Groundbirch assets, which are currently producing and which have demonstrated excellent potential to provide long-term growth in production and reserves for Pengrowth.”
The effective and closing date of the transaction is expected to occur on or about March 31, 2017, subject to customary closing conditions.
Pengrowth Energy Corporation is an intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alberta. Pengrowth’s assets include the Lindbergh thermal oil, Cardium light oil, Swan Hills light oil and the Groundbirch Montney gas projects. Pengrowth’s shares trade on both the Toronto Stock Exchange under the symbol “PGF” and on the New York Stock Exchange under the symbol “PGH”.
PENGROWTH ENERGY CORPORATION
Derek Evans, President and Chief Executive Officer
All amounts are stated in Canadian dollars unless otherwise specified.