CALGARY, Alberta, April 05, 2018 (GLOBE NEWSWIRE) — Pengrowth Energy Corporation (TSX:PGF) (NYSE:PGH) is pleased to provide an update on our operational progress during the first quarter of 2018 in accordance with our business plan.
“I am excited by the execution and progress that our teams have achieved thus far, in my early tenure at Pengrowth”, said Pete Sametz, President and Chief Executive Officer of Pengrowth. “Through the successful delivery of our development program, which is centered on operational excellence and efficient capital allocation, we expect to achieve double-digit production growth in 2018 and longer-term, efficient production and reserves growth from our two 100 percent owned and operated assets at Lindbergh and Groundbirch.”
At our Lindbergh thermal oil project, production volumes from the ramp up of the new well pairs drilled in late 2017 resulted in total production surpassing 16,000 barrels (bbl) per day in early April, representing an increase of approximately 11 percent from the start of the year. As part of our 2018 optimization strategy for Lindbergh, the Company plans on drilling eight infill wells in the second quarter of 2018 and these wells are expected to be brought on stream in the fourth quarter of 2018, increasing Lindbergh production to approximately 18,000 bbl per day by the end of the year.
As of April 1, 2018, volumes from Groundbirch commenced flow on the Nova Gas Transmission Limited (NGTL) system, after successfully completing the compression project which allows us to shift transportation of natural gas production at Groundbirch away from Station Two and onto the NGTL system. During the first quarter we completed and tied-in three of the four wells that were drilled in late 2017, with the additional production volumes coming on stream concurrent with the new NGTL capacity. The remaining well is expected to be completed and tied-in early in the third quarter of 2018. As a result of these activities, total production at Groundbirch increased from approximately nine million cubic feet (MMcf) per day at the start of the year to over 28 MMcf per day as of April 5, 2018, representing an increase of over 200 percent with one well remaining to be tied-in. The gas production from Groundbirch is a physical hedge for our gas requirements needed to make steam at Lindbergh, where we expect to utilize approximately 87 percent of the natural gas produced from Groundbirch.
Our 2018 capital expenditure budget of $65 million remains unchanged and is focused on adding production volumes from Lindbergh and Groundbirch. The 2018 budget is expected to generate average annual production of 22,500 to 23,500 barrels of oil equivalent (boe) per day, with an estimated 2018 exit rate of approximately 24,000 boe per day, representing double-digit production growth for 2018.
Pengrowth is also pleased to announce that it will be attending the CAPP Scotiabank Investment Symposium in Toronto, Ontario on April 10 and 11, 2018.
Pengrowth Energy Corporation is a Canadian energy company focused on the sustainable development and production of oil and natural gas in Western Canada from its Lindbergh thermal oil property and its Groundbirch Montney gas property. The Company is headquartered in Calgary, Alberta, Canada and has been operating in the Western basin for over 28 years. The Company’s shares trade on both the Toronto Stock Exchange under the symbol “PGF” and on the New York Stock Exchange under the symbol “PGH”.