​Pengrowth selling $92 million in Montney land in follow-up to Swan Hills light oil sale

Pengrowth's Lindbergh SAGD project. Image: Scovan Engineering

It’s been a big week for Pengrowth Energy Corporation’s divestiture program.

The company announced on Thursday it has entered into an agreement to sell non-producing Montney acreage for $92 million, after making public a $180-million Swan Hills light oil divestiture on Monday.

Pengrowth is in a process to de-lever its balance sheet and provide additional financial flexibility to pursue development of its core growth assets, it says.

This is primarily its high-performing Lindbergh SAGD project in the Cold Lake region, which started as a pilot in 2012 and now produces about 15,000 bbls/d against nameplate capacity of 12,500 bbls/d.

The project has regulatory approval to expand by 17,500 bbls/d, and Pengrowth recently filed an application for a further 10,000 bbl/d in growth.

Despite the sale of land at Bernadet in northeast B.C., the company still believes in the Montney, CEO Derek Evans said in a statement.

“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."

Pengrowth reduced its net loss in 2016 to $294 million from $1.09 billion in 2015, mainly due to the absence of impairment charges recorded in 2015, the company says.

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