Pengrowth Reaffirms Full Year Guidance and Reports Solid First Quarter Results With Continued Progress on Differentiated

Pengrowth Reaffirms Full Year Guidance and Reports Solid First Quarter Results 
With Continued Progress on Differentiated Strategy 
CALGARY, ALBERTA -- (Marketwired) -- 05/01/13 -- Pengrowth Energy
Corporation (TSX:PGF) (NYSE:PGH) today announced financial and
operating results for the first quarter of 2013 that highlighted
continued progress in its drive to become a long term sustainable,
dividend paying, energy producer. 
"We are delighted with the results of our Cardium winter drilling
program, the positive investor support for our niche thermal strategy
and its associated sustainable financial model and the Lindbergh
pilot, where performance continues to improve and exceed
expectations," said Derek Evans, President and Chief Executive
Officer of Pengrowth. "Pengrowth had a strong quarter, with
production and cash flow meeting budget and guidance expectations. In
addition to the $316 million Weyburn sale that closed in March, we
have made good progress in our efforts to sell non-core assets and
are currently negotiating disposition agreements worth between $100
million and $125 million. Proceeds of these sales will provide
Pengrowth with the financial flexibility needed to develop Lindbergh.
Pengrowth enjoys an extensive array of additional, actionable funding

--  Pengrowth remains committed to a dividend of 4 cents per share per
--  The $316 million Weyburn asset sale closed on March 8, 2013 and enables
    Pengrowth to balance cash inflows and outflows for 2013, resulting in no
    expected growth in debt this year. 
--  Negotiations are in progress on the sale of $100 million to $125 million
    worth of non-core assets. Proceeds will be used to help fund 2014
    spending at Lindbergh. 
--  Funds Flow from Operations for the quarter of $147.5 million ($0.29 per
    share) are on track with guidance. Pengrowth expects to fund its planned
    2013 capital spending and dividend fully with funds flow from operations
    and the proceeds already received from the Weyburn sale. 
--  Lindbergh pilot performance continues to exceed expectations, with
    production recently reaching 1,750 barrels per day (bbl/d) of bitumen
    from two well pairs at an Instantaneous Steam Oil Ratio (ISOR) o
f 1.7x.
    The planned 12,500 bbl/d commercial project remains on track, with
    Environmental Protection and Enhancement Act (EPEA) approval expected
    this summer. 
--  Production for the quarter was 89,702 barrels of oil equivalent per day
    (boe/d) and met internal expectations and is in line with full year
    guidance of 85,000 to 87,000 boe/d. 
--  Pengrowth achieved strong drilling and completion results in the Cardium
    formation, with 13.7 net wells being drilled (100 percent success) and
    7.8 net wells completed. Based on initial test data and early production
    results, the wells appear to be meeting or exceeding type curve
--  Additional hedges were entered into during the quarter, adding to the
    2014 position with 64 percent of expected 2014 oil and 33 percent of
    expected 2014 natural gas production hedged at average prices of
    CDN$94.51 per bbl of oil and CDN$3.79 per Mcf of natural gas.

Pengrowth's sustainability model implies balancing cash inflows and
outflows, generating meaningful growth in cash flow per share and
shifting production decisively toward oil and liquids over the next
few years. Pengrowth believes that thermal bitumen production from
Lindbergh will help improve sustainability, as it offers the best
blend of low decline, low sustaining capital, high netback and long-life assets available to the company. The company's Lindbergh thermal
bitumen project is well- suited to supporting a dividend and is
expected to allow Pengrowth to boost its proportion of oil and
liquids production from just over 50 percent today to over 80 percent
by 2018. 
The two Lindbergh pilot well pairs have now generated cumulative
production of over 500,000 barrels of bitumen. The pilot reached
target production milestones in less than half the time expected,
which could allow Pengrowth to accelerate the project by a year
versus original plans and to expand total planned production capacity
to 50,000 bbl/d by 2018, subject to regulatory approval. Lindbergh's
ISOR has remained exceptionally low, in the range of 1.7x. 
The 12,500 bbl/d first commercial phase of the Lindbergh project is
on schedule and on budget, with EPEA approval expected this summer
and significant production by late 2014. 

Summary of Financial & Operating Results                                    
(monetary amounts in millions,                                              
 except per share and per boe                                               
 amounts or as otherwise                                                    
 stated)                                  Three months ended                
                                Mar 31,   Dec 31,       %   Mar 31,       % 
                                   2013      2012  Change      2012  Change 
Average daily production                                                    
 (boe/d)                         89,702    94,039      (5)   75,618      19 
CASH FLOW                                                                   
Funds flow from operations     $  147.5  $  189.7     (22) $  113.6      30 
Funds flow from operations per                                              
 share                         $   0.29  $   0.37     (22) $   0.31      (6)
Oil and gas sales (1)          $  390.9  $  431.5      (9) $  328.5      19 
Oil and gas sales per boe      $  48.41  $  49.88      (3) $  47.73       1 
Operating expense (2)          $  117.9  $  114.4       3  $   90.1      31 
Operating expense per boe      $  14.60  $  13.22      10  $  13.10      11 
Royalty expense                $   67.0  $   69.5      (4) $   77.9     (14)
Royalty expense per boe        $   8.30  $   8.03       3  $  11.32     (27)
Royalty expense as a percent                                                
 of sales                          17.1%     16.1%             23.7%        
Operating netback per boe (2)  $  24.77  $  27.88     (11) $  22.47      10 
Cash G&A expense (2)           $   23.9  $   25.0      (4) $   21.8      10 
Cash G&A expense per boe       $   2.96  $   2.89       2  $   3.16      (6)
Capital expenditures           $  166.0  $   93.9      77  $  153.7       8 
Capital expenditures per share $   0.32  $   0.18      78  $   0.42     (24)
Net cash acquisitions                                                       
 (dispositions)                $ (315.7) $   56.2       -  $   25.1       - 
Net cash acquisitions                                                       
 (dispositions) per share      $  (0.61) $   0.11       -  $   0.07       - 
Dividends paid                 $   61.5  $   61.1       1  $   75.8     (19)
Dividends paid per share       $   0.12  $   0.12       -  $   0.21     (43)
Number of shares outstanding                                                
 at period end (000's)          515,370   511,804       1   364,471      41 
Weighted average number of                                                  
 shares outstanding (000's)     513,359   509,960       1   361,966      42 
STATEMENT OF INCOME (LOSS)                                                  
Adjusted net income (loss)     $   (1.1) $   24.1       -  $   (5.4)      - 
Net income (loss)              $  (65.1) $   (1.1)      -  $    0.7       - 
Net income (loss) per share    $  (0.13) $      -       -  $      -       - 
LONG TERM DEBT                                                              
Long term debt (3)             $1,392.1  $1,530.6      (9) $1,044.0      33 
Convertible debentures         $  236.8  $  237.1       -  $      -       - 
Total long term debt including                                              
 convertible debentures        $1,628.9  $1,767.7      (8) $1,044.0      56 
CONTRIBUTION BASED ON                                                       
 OPERATING NETBACKS(2)                                                      
Light oil                            65%       65%               60%        
Heavy oil                             8%       10%               16%        
Natural gas liquids                  12%       13%               22%        
Natural gas                          15%       12%                2%        
(1) Includes the impact of realized commodity risk management contracts.    
(2) Prior periods restated to conform to presentation in the current period.
(3) Long term debt includes the current and long term portions.             

First quarter 2013 average daily production decreased five percent
(4,300 boe/d) compared to the fourth quarter of 2012. The majority of
this decline was expected and comprised 2,000 boe/d due to natural
declines in gas volumes, a further 1,000 boe/d due to property
dispositions and 1,300 boe/d due to one-off operational restrictions,
coupled with increased gas required at the Judy Creek miscible flood
and the timing of condensate shipments from the Sable Offshore Energy
Project (SOEP), partially offset by the inclusion of Lindbergh
production. The decline in natural gas production is a result of
Pengrowth continuing to allocate capital away from conventional gas
assets towards light oil and thermal projects. 
Average daily production increased 19 percent compared to the same
period last year, primarily due to additional volumes from the NAL
acquisition, new production from the drilling program at Greater
Olds/Garrington, as well as the inclusion of production from the
Lindbergh thermal pilot. 
Oil and Gas Revenues 
First quarter oil and gas revenues of $391 million were nine percent
lower than fourth quarter 2012 revenues of $432 million. Lower
production volumes in the first quarter compared to the fourth
quarter of 2012 and lower realized commodity prices for light and
heavy oil were the primary reasons for the decline in revenues. First
quarter 2013 revenues were 19 percent higher compared to the $329
million recorded in the first quarter of 2012. Increased production
volumes from the NAL acquisition was the primary reason for the year
over year increase. 
Funds Flow from Operations 
First quarter 2013 Funds Flow from Operations was $148 million ($0.29
per share), a 22 percent decrease compared to fourth quarter 2012
funds flow of $190 million ($0.37 per share). The decrease in funds
flow was primarily due to lower production volumes in the first
quarter and lower realized oil prices after hedging impact. 
Compared to the first quarter 2012 funds flow of $114 million ($0.31
per share), first quarter 2013 funds flow was up by 30 percent. This
increase in funds flow resulted primarily from higher production
volumes from the NAL acquisition, lower royalties and a smaller
discount between Canadian light oil and West Texas Intermediate,
partially offset by lower realized prices for oil and liquids,
primarily due to lower benchmark prices and higher operating
Adjusted Net Income and Loss 
Pengrowth recorded an Adjusted Net Loss of $1.1 million in the first
quarter of 2013, compared to Adjusted Net Income of $24.1 million in
the prior quarter. This change was driven by the decrease in Funds
Flow from Operations and no repeat of a favourable deferred tax
adjustment from the prior quarter, partly offset by gains on
dispositions and lower Depletion, Depreciation and Amortization
In comparison to the same period last year, Pengrowth recorded a $4.3
million decrease in the Adjusted Net Loss in the most recent quarter.
The smaller Adjusted Net Loss is primarily due to an increase in
Funds Flow from Operations and gains on dispositions, partly offset
by an increase in DD&A. 
Operating Expenses 
First quarter 2013 operating expenses were $118 million ($14.60 per
boe), compared to $114 million ($13.22 per boe) in the fourth quarter
of 2012. This three percent increase in operating expenses was mainly
due to the inclusion of Lindbergh operating expenses as of January 1,
2013 and higher spending on non-operated properties. Prior to
sanctioning of the 12,500 bbl/d first commercial phase of the project
in January 2013, Lindbergh pilot project operating expenses were
Compared to first quarter of 2012, when operating expenses were $90
million, first quarter 2013 expenses increased by 31 percent to $118
million. Additional operating expenses associated with the acquired
NAL properties, coupled with higher power costs and inclusion of the
Lindbergh operating expenses during the quarter were the primary
reasons for the increased costs year over year. 
Development Capital 
Pengrowth spent $166 million on development activities in the first
quarter of 2013 and participated in the drilling of 101 gross wells
(65.5 net) within its key focus areas of Greater Olds/Garrington,
Swan Hills and Lindbergh, where 26 net delineation wells were
drilled. Approximately 87 percent of the first quarter expenditures
were spent on drilling, completion and facilities work, with the
remainder directed to maintenance, land and corporate activities. 
Greater Olds/Garrington Area 
Pengrowth holds a large, contiguous land base in the Greater
Olds/Garrington area with over 500 gross sections of Cardium rights,
extensive infrastructure and significant operatorship. 
Activity in the Greater Olds/Garrington area was substantial in the
first quarter, with Pengrowth spending $56.9 million on development
drilling and facilities. Pengrowth participated in the drilling of 22
gross (13.7 net) wells, targeting the Cardium formation. Completion
activities were carried out on 13 gross (7.8 net) wells, with five
gross (2.9 net) wells being placed on production during the quarter
with combined net production (initial five day average) of
approximately 750 boe/d (260 boe/d/net well). The remaining wells are
expected to be placed on production in the second quarter of 2013. 
In addition, construction began on the expansion of the Lochend
battery, in which Pengrowth has a 40 percent working interest and is
the operator. Additional compression and oil treating facilities are
expected to double production handling capacity to approximately
10,000 boe/d (7,000 bbl/d oil and 18 MMcf/d gas) by the end of April
Swan Hills Trend 
The Swan Hil
ls Trend is a significant conventional oil resource,
providing long term, low decline production and cash flow for the
Company. The extensive carbonate oil reservoir in this trend provides
Pengrowth with opportunities to put its expertise in horizontal
drilling and multi-stage acid fracturing of carbonate reservoirs to
work on its operated interests in Judy Creek, Carson Creek, Deer
Mountain, Virginia Hills and Sawn Lake, where Pengrowth has extensive
control of infrastructure. 
During the first quarter, Pengrowth spent $36.0 million on
development activities, targeting light oil opportunities and drilled
a total of four operated wells (3.0 net) and eight partner-operated
oil wells (1.6 net). There were three (2.5 net) operated oil wells
completed in the quarter with a combined net production test (initial
five day average) of approximately 550 boe/d (220 boe/d/net well). 
Pengrowth expects to resume drilling operations with one rig after
spring break-up late in the second quarter of 2013. 
Pengrowth's 100 percent owned and operated Lindbergh property is
located in the Cold Lake area of Alberta and encompasses 42.5
sections of land. The Lindbergh thermal project targets the
Lloydminster formation, where the bitumen has excellent flow
characteristics and oil quality, which translates into higher
netbacks than are typically seen in other thermal projects. Based on
positive pilot results during 2012, the 12,500 bbl/d first commercial
phase of Lindbergh was sanctioned by Pengrowth's Board of Directors
in January 2013 and, subject to EPEA approval, is expected to be
constructed during 2013 and 2014. 
Engineering work is ongoing and Pengrowth has undertaken capital
investment in critical path and long lead items. Pending regulatory
approval, expected in the summer, field construction is slated to
kick off in the third quarter, with drilling activities to commence
in the fourth quarter of 2013. Lindbergh is expected to provide
Pengrowth with the potential to develop production of up to 50,000
bbl/d of bitumen over three phases of development. This is expected
to be low cost, low decline, stable production, with a 25 year
reserve life. 
Approximately $37.8 million was spent at Lindbergh during the
quarter, with Pengrowth drilling 26 delineation wells. These wells
help confirm the thickness, aerial extent and geological
characteristics of the reservoir and were drilled in support of the
Environmental Impact Assessment (EIA) application currently being
compiled for the second phase (17,500 bbl/d) commercial development,
which would increase the facility's capacity to 30,000 bbl/d.
Pengrowth expects to submit this application by the end of 2013. 
Operations at the pilot project continued to show strong results
during the quarter, with combined field production from the two well
pairs averaging 1,620 bbl/d of bitumen and daily rates reaching 1,750
bbl/d just prior to a planned turnaround. The ISOR of 1.7x was
constant through the first quarter, with cumulative production from
the two well pairs exceeding 500,000 barrels of bitumen since
commencing production in June of 2012. The two week plant turnaround
at the pilot site was completed in mid-April, 2013 and production is
now fully restored. 
Financial Flexibility 
Pengrowth remains committed to ensuring its financial flexibility as
it makes its transition to becoming a long term sustainable, dividend
paying energy producer. The Company has taken several measures
intended to safeguard its dividend, maintain its financial and
balance sheet strength and provide additional flexibility to ensure
that it has the financial means and discipline to develop the
Lindbergh thermal bitumen project. These include: 

--  Selling non-core properties 
--  Expanding its commodity hedging program 
--  Managing interest costs through term debt markets 

In the first quarter of 2013, Pengrowth closed the sale of the
non-operated Weyburn unit interest (2,500 boe/d net) in southeast
Saskatchewan, for gross proceeds of $316 million, prior to closing
adjustments. The proceeds of the sale were used to pay down
Pengrowth's credit facilities, leaving the facilities undrawn at
March 31, 2013, with $1.0 billion of available capacity. With the
Weyburn sale complete, Pengrowth expects that it will be able to fund
its planned 2013 capital spending while maintaining the current
dividend, with no increase in total debt over 2012 debt levels. 
On January 11, 2013, Pengrowth announced plans to make additional
dispositions targeting total proceeds of up to $700 million by year
end 2013. Pengrowth has made good progress on the sale of non-core
assets and is currently negotiating agreements worth $100 million to
$125 million. Pengrowth enjoys an extensive inventory of additional
actionable funding opportunities. The proceeds from these targeted
sales are earmarked to support the 2014 funding of the first
commercial phase of the Lindbergh thermal project and are not
required to fund any capital expenditures or the dividend in 2013.
Pengrowth will exercise discipline and be prudent with its planned
dispositions so as to maximize the potential value from the
dispositions and minimize the cash flow impact. 
Pengrowth has expanded its hedging activities to mitigate commodity
price risk and provide a measure of stability and predictability to
cash flows. Hedging activities have resulted in Pengrowth having 65
percent of its expected 2013 oil production hedged at Cdn$93.84 and
64 percent in 2014 at Cdn$94.51 per barrel. Natural gas hedges
account for 61 percent of expected 2013 gas production at Cdn$3.32
per Mcf and 33 percent in 2014 at Cdn$3.79 per Mcf. 
Additional details of Pengrowth's risk management contracts in place
for 2013, 2014 and 2015 are outlined in the Management's Discussion
and Analysis and Notes to the March 31, 2013 unaudited Financial
Pengrowth's total long-term debt was approximately $1.6 billion as at
March 31, 2013, comprising $1.4 billion of fixed rate term notes and
$0.2 billion of convertible debentures. 
Pengrowth remains on track to achieve its objectives of becoming a
long term sustainable, dividend paying energy producer. The
development of the first phase of the Lindbergh thermal project is
proceeding on time and on budget, with EPEA approval expected this
summer. The pilot performance continues to exceed expectations, with
current production surpassing 1,700 bbl/d at a stable ISOR of 1.7x. 
Estimated full year 2013 average production is expected to meet
guidance (85,000 to 87,000 boe/d). While full year guidance remains
intact, the company expects that second quarter production will be
3,000 to 4,000 boe/d lower than in the first quarter due to the
Weyburn disposition, planned downtime and plant turnarounds across
operated and non-operated properties including Lindbergh, Quirk
Creek, Sable Island, Dunvegan, and Lochend. 
Pengrowth's outlook for cash flow remains on track despite the
volatile commodity price environment in recent weeks, as a result of
its hedging program. 
Pengrowth continues to make strong progress on non-core asset sales.
The pipeline of asset sale opportunities is extensive and designed to
tap multiple pools of capital. 
"We look forward to updating you on the progress we have made on our
non-core asset sales, at our Annual General Meeting on June 25,
2013," said Derek Evans, President and Chief Executive Officer of
Pengrowth's unaudited Financial Statements for the three months ended
March 31, 2013 and related Management's Discussion and Analysis can
be viewed on Pengrowth's website at They have been
filed on SEDAR at and on EDGAR at 
Conference call: 
Pengrowth will conduct a conference call and webcast with investors
on Thursday, May 2, 2013 at 6:30 AM Mountain Time (8:30 AM Eastern
Time). Participants should call 1-866-226-1792 ten minutes before the
start of the call or can listen in online via the webcast using the
A replay of the call will be made available until midnight Eastern
Time on May 9, 2013 by calling 1-800-408-3053. The passcode is
Notice of Annual General Meeting: 
Pengrowth's 2013 annual meeting of shareholders will be held on June
25, 2013 at 3:00 P.M. Mountain Time at the Metropolitan Conference
Centre, located at 333 - Fourth Avenue SW, Calgary, Alberta.
Information circulars and proxy forms pertaining to this meeting are
expected to be mailed in late May to shareholders of record as of May
24, 2013. 
About Pengrowth: 
Pengrowth Energy Corporation is a dividend-paying, intermediate
Canadian producer of oil and natural gas, headquartered in Calgary,
Alberta. Pengrowth's assets include the Cardium light oil, Swan Hills
light oil and Lindbergh thermal bitumen 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". 
Derek Evans, President and Chief Executive Officer 
All amounts are stated in Canadian dollars unless otherwise
Advisory Regarding Production Information 
All production information herein is based upon Pengrowth's Company
interest (Pengrowth's working interest share of production plus
Pengrowth's royalty interest, being Pengrowth's interest in
production and payment that is based on the gross production at the
wellhead), before royalties. 
Caution Regarding Engineering Terms: 
When used herein, the term "boe" means barrels of oil equivalent on
the basis of one boe being equal to one barrel of oil or NGLs or
6,000 cubic feet of natural gas (6 Mcf: 1 bbl). Barrels of oil
equivalent may be misleading, particularly if used in isolation. A
conversion ratio of six Mcf of natural gas to one boe is based on an
energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the
wellhead. All production figures stated are based on Company Interest
before the deduction of royalties. 
Initial production results and steam oil ratio 
This press release references early production results (IP rates) in
various areas and steam oil ratios for the Lindbergh pilot project.
These results are not necessarily reflective of long-term production
results, production profiles, steam oil ratios or ultimate
performance of these wells or the project. 
Caution Regarding Forward Looking Information: 
This press release contains forward-looking statements within the
meaning of securities laws, including the "safe harbour" provisions
of the Canadian securities legislation and the United States Private
Securities Litigation Reform Act of 1995. Forward-looking information
is often, but not always, identified by the use of words such as
"anticipate", "believe", "expect", "plan", "intend", "forecast",
"target", "project", "guidance", "may", "will", "should", "could",
"estimate", "predict" or similar words suggesting future outcomes or
language suggesting an outlook. Forward-looking statements in this
press release include, but are not limited to, statements with
respect to Pengrowth's strategy, plans and objectives, maintaining
dividend levels, future dividends, 2013 capital expenditures, the
allocation thereof and the source of funding, anticipated Lindbergh
production, the sources of funding for the Lindbergh project, the
timing of the Linbergh project becoming operational and the receipt
of all required regulatory approvals required in connection therewith
and on the timing contemplated, the timing and plans relating to the
second and third phase of Lindbergh, potential asset sales and the
entering of sale agreements, costs and timing, drilling plans,
drilling inventory, production, production volumes, initial
production rates, hedging plans, projected cash flow, funds flow,
future borrowing, financing plans, future debt levels, operating
expenses, G&A, royalties and transportation costs, Pengrowth's
production profile, liquids to gas ratio, reserves and the
replacement thereof. Statements relating to "reserves" and
"resources" are deemed to be forward-looking statements, as they
involve the implied assessment, based on certain estimates and
assumptions that the reserves and resources described exist in the
quantities predicted or estimated and can profitably be produced in
the future. 
Forward-looking statements and information are based on current
beliefs as well as assumptions made by and information currently
available to Pengrowth concerning anticipated financial performance,
business prospects, strategies and regulatory developments. Although
management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be
By their very nature, forward-looking statements involve inherent
risks and uncertainties, both general and specific, and risks that
predictions, forecasts, projections and other forward-looking
statements will not be achieved. We caution readers not to place
undue reliance on these statements as a number of important factors
could cause the actual results to differ materially from the beliefs,
plans, objectives, expectations and anticipations, estimates and
intentions expressed in such forward- looking statements. These
factors include, but are not limited to: changes in general economic,
market and business conditions; the volatility of oil and gas prices;
fluctuations in production and development costs and capital
expenditures; the imprecision of reserve estimates and estimates of
recoverable quantities of oil, natural gas and liquids; Pengrowth's
ability to replace and expand oil and gas reserves; geological,
technical, drilling and processing problems and other difficulties in
producing reserves; environmental claims and liabilities; incorrect
assessments of value when making acquisitions; increases in debt
service charges; the loss of key personnel; the marketability of
production; defaults by third party operators; unforeseen title
defects; fluctuations in foreign currency and exchange rates;
fluctuations in interest rates; inadequate insurance coverage;
compliance with environmental laws and regulations; inability to
receive regulatory and other third party approvals; actions by
governmental or regulatory agencies, including changes in tax laws;
Pengrowth's ability to access external sources of debt and equity
capital; the impact of foreign and domestic government programs and
the occurrence of unexpected events involved in the operation and
development of oil and gas properties. Although the Corporation
currently intends to maintain its monthly dividend, dividends can and
may fluctuate in the future. Actual future cash dividends, if any,
will be subject to the discretion of our Board of Directors and may
vary depending on a variety of factors and conditions existing from
time to time, including fluctuations in commodity prices, production
levels, capital expenditure requirements, debt service requirements,
operating costs, royalty burdens, foreign exchange rates and the
satisfaction of the liquidity and solvency tests imposed by the ABCA
for the declaration and payment of dividends. 
Further information regarding these factors may be found under the
heading "Business Risks" in our most recent management's discussion
and analysis and under "Risk Factors" in our Annual Information Form
dated February 28, 2013. 
The foregoing list of factors that may affect future results is not
exhaustive. When relying on our forward-looking statements to make
decisions, investors and others should carefully consider the
foregoing factors and other uncertainties and potential events.
Furthermore, the forward-looking statements contained in this press
release are made as of the date of this press release, and Pengrowth
does not undertake any obligation to update publicly or to revise any
of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
applicable laws. 
The forward-looking statements contained in this press release are
expressly qualified by this cautionary statement. 
Additional Information - Supplemental and Additional Non-IFRS
In addition to providing measures prepared in accordance with
International Financial Reporting Standards (IFRS), Pengrowth
presents supplemental and additional non-IFRS measures, Adjusted Net
Income (Loss), operating netbacks and Funds Flow from Operations.
These measures do not have any standardized meaning prescribed by
IFRS and therefore are unlikely to be comparable to similar measures
presented by other companies. These supplemental non-IFRS measures
are provided to assist readers in determining Pengrowth's ability to
generate cash from operations. Pengrowth believes these measures are
useful in assessing operating performance and liquidity of
Pengrowth's ongoing business on an overall basis. 
These measures should be considered in addition to, and not as a
substitute for, net income (loss), cash provided by operations and
other measures of financial performance and liquidity reported in
accordance with IFRS. Further information with respect to these
additional and non-IFRS measures can be found in Pengrowth's most
recent management's discussion and analysis. 
Note to US Readers 
Current SEC reporting requirements permit oil and gas companies, in
their filings with the SEC, to disclose probable and possible
reserves, in addition to the required disclosure of proved reserves.
Under current SEC requirements, net quantities of reserves are
required to be disclosed, which requires disclosure on an after
royalties basis and does not include reserves relating to the
interests of others. Because we are permitted to prepare our reserves
information in accordance with Canadian disclosure requirements, we
have included contingent resources, disclosed reserves before the
deduction of royalties and interests of others and determined and
disclosed our reserves and the estimated future net cash therefrom
using forecast prices and costs. See "Presentation of our Reserve
Information" in our most recent Annual Information Form or Form 40-F
for more information. 
We report our production and reserve quantities in accordance with
Canadian practices and specifically in accordance with NI 51-101.
These practices are different from the practices used to report
production and to estimate reserves in reports and other materials
filed with the SEC by companies in the United States. 
We incorporate additional information with respect to production and
reserves which is either not generally included or prohibited under
rules of the SEC and practices in the United States. We follow the
Canadian practice of reporting gross production and reserve volumes;
however, we also follow the United States practice of separately
reporting these volumes on a net basis (after the deduction of
royalties and similar payments). We also follow the Canadian practice
of using forecast prices and costs when we estimate our reserves. The
SEC permits, but does not require, the disclosure of reserves based
on forecast prices and costs.
Investor Relations
(403) 233-0224 or Toll Free: 1-888-744-1111
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