Pengrowth sells remaining Swan Hills properties for $150 Million

Pengrowth sells remaining Swan Hills properties for $150 Million

Properties have 31 million boe of proved plus probable reserves

Pengrowth Energy Corporation announced it entered into a sale of its remaining Swan Hills assets in North Central Alberta for total cash consideration of $150 million, according to a press release.

When combined with the approximate $18 million deposit from the initial sales process which was terminated on July 11, 2017, total consideration for the sold assets will be approximately $168 million before closing adjustments.

The assets to be sold generated average daily production of approximately 5,060 barrels of oil equivalent per day (boe per day) (weighted approximately 82 per cent towards liquids) during the second quarter of 2017.

The properties also had a 31 million boe of Proved plus Probable reserves assigned to them as at Dec. 31, 2016, according to the independent reserve evaluators GLJ Petroleum Consultants Ltd.

The effective date of the sale is Jan. 1, 2017 and closing is expected to occur during the fourth quarter of 2017, subject to the receipt of all necessary regulatory approvals and the satisfaction of other customary closing conditions.

On closing, the sale will complete the Company’s exit from the Swan Hills area and provide it with additional financial liquidity.

The Company expects to provide an update to its fourth quarter and full year 2017 guidance following the closing of the sale.