CALGARY, ALBERTA–(Marketwired – May 30, 2016) – Pengrowth Energy Corporation (TSX:PGF) (NYSE:PGH) today announced that it has received the anticipated Environmental Protection and Enhancement Act (EPEA) approval for the 17,500 barrel per day (bbl per day) second commercial phase of its Lindbergh thermal project. The approval contains no conditions that materially change the estimated cost, scope or timing of the project. This approval marks the culmination of approximately 30 months of project review by stakeholders and regulators.
The second commercial phase is designed to add 17,500 bbl per day of incremental capacity, resulting in total nameplate capacity from Lindbergh of 30,000 bbl per day at a steam oil ratio (SOR) of 3.6, once the expansion phase is complete. Capital cost estimates and commitments for the second phase have not been finalized and will likely not be pursued until market conditions are more supportive of these activities.
Lindbergh, Pengrowth’s 100 percent owned and operated thermal project, is located in the Cold Lake area of eastern Alberta. The project offers Pengrowth the potential to ultimately develop annual production of 40,000 to 50,000 bbl per day, starting with the 12,500 bbl per day nameplate capacity first commercial phase, which came on-stream in 2015.
Production from the first commercial phase has continued to ramp-up, averaging 15,256 bbl per day in the first quarter of 2016 at an average SOR of 2.3. The original two pilot well pairs that have been on production for over 48 months and have recovered approximately 2.3 million barrels of the 2.4 million barrels that were originally estimated to be recovered. Performance from the pilot wells continues to be robust with the current combined production rate from the two well pairs being approximately 1,300 bbl per day at an average SOR of 3.3.
“We are delighted to have received final regulatory approval for the second commercial phase at Lindbergh, which, to date, has been among the best performing thermal bitumen projects in western Canada,” said Derek Evans, President and CEO of Pengrowth. “This expansion will be part of our transition to building a portfolio of highly economic thermal oil assets with low SORs, low declines, low sustaining capital and strong capital efficiencies. The hallmarks of long-term sustainability.”
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 and Bernadet 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