Pengrowth Receives Regulatory Approval for the 12,500 Barrel Per Day First Commercial Phase of the Lindbergh Thermal Bitumen

Pengrowth Receives Regulatory Approval for the 12,500 Barrel Per Day First 
Commercial Phase of the Lindbergh Thermal Bitumen Project 
CALGARY, ALBERTA -- (Marketwired) -- 07/15/13 -- Pengrowth Energy
Corporation (TSX:PGF)(NYSE:PGH) announced today that it has received
Environmental Protection and Enhancement Act (EPEA) approval for the
12,500 barrel per day (bbl/d) first commercial phase of its Lindbergh
thermal project in east central Alberta. The approval contains no
conditions that materially change cost, scope or timing of the
project. This decision marks the culmination of approximately 18
months of project review by stakeholders and regulators. 
"We are delighted to have received final regulatory approval to
proceed with the first commercial phase of Lindbergh, which we expect
will be among the best thermal bitumen projects in western Canada,"
said Derek Evans, President and CEO of Pengrowth. "Based on the
outstanding pilot performance, we expect the commercial project will
be a highly economic, low steam oil ratio, low decline project that,
once at full capacity, will provide the backbone for a long term,
dividend paying model. We believe the resource base at Lindbergh
could ultimately support production of 50,000 barrels of bitumen per
day for Pengrowth and generate significant long term cash flow in
support of our dividend."  
Status of 12,500 bbl/d Lindbergh Phase I 
In anticipation of receiving this approval, Pengrowth has ordered all
major equipment and over 60% of the minor equipment required. Process
design is 90% complete and mechanical design is 40% complete. Vendor
packages have been ordered and skid fabrication has commenced.
Engineering and procurement work is on track and Pengrowth plans to
commence civil construction activities this summer. Mechanical
construction of the central processing facility and drilling of 23
additional well pairs to supplement the two well pairs currently
producing at the Lindbergh pilot will commence in September 2013. The
$590 million project is on time and on budget with first steam
expected in the fourth quarter of 2014.  
Lindbergh Pilot Project Update 
The Lindbergh pilot continues to exceed Pengrowth's expectations,
with May 2013 production reaching record levels following a two week
planned maintenance outage in April. Cumulative production from the
two well pairs was approximately 640,000 bbls at the end of June.  


 
2013      Monthly Average Production (bbl/d)   Instantaneous steam oil ratio
----------------------------------------------------------------------------
April                                  1,200                             1.7
May                                    2,500                             1.3
June                                   2,300                             1.4

 
Production at the two well pair pilot is expected to level out at
approximately 2,000 bbl/d with an ISOR of 1.7.  
Next Expansion Phase 
Subject to Board and regulatory approvals, Pengrowth plans to follow
up with two subsequent phases of development at Lindbergh. Production
from Phase 2 is expected to commence in early 2017, with a ramp-up to
30,000 bbl/d, to be followed by Phase 3, which is expected to
increase total production to approximately 50,000 bbl/d by the end of
2018. Pengrowth plans to submit a formal Environmental Impact
Assessment (EIA) application for the next expansion to 30,000 bbl/d
in the first quarter of 2014.  
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 Swan Hills light oil, Cardium
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".  
PENGROWTH ENERGY CORPORATION 
Derek Evans, President and Chief Executive Officer 
For further information about Pengrowth, please visit our website
www.pengrowth.com. 
Advisory Regarding Reserves, Contingent Resources and Production
Information 
All amounts are stated in Canadian dollars unless otherwise
specified. 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 deduction of royalty. 
Caution Regarding Forward Looking Information  
This press release contains forward-looking statements within the
meaning of securities laws, including the "safe harbour" provisions
of 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. In particular, forward-looking
statements in this press release include, but are not limited to,
statements with respect to: the cost, scope and timing of the
commercial project; the anticipated performance, ISOR and decline
rate of, and cash flow from, the commercial project; the ultimate
commercial production rate of the project; the status of the
development of the first, second and third commercial phases of the
project; the anticipated timing of first steam; the timing for
submission of the EIA application and potential future project
production levels.  
Forward-looking statements and information contained in this press
release are based on Pengrowth's current beliefs as well as
assumptions made by, and information currently available to,
Pengrowth concerning general economic and financial market
conditions; anticipated financial performance; business prospects,
strategies; regulatory developments; including in respect of
taxation; royalty rates and environmental protection; future capital
expenditures and the timing thereof; future oil and natural gas
commodity prices and differentials between light, medium and heavy
oil prices; future oil and natural gas production levels; future
exchange rates and interest rates; the proceeds of anticipated
divestitures; the amount of future cash dividends paid by Pengrowth;
the cost of expanding our property holdings; our ability to obtain
labour and equipment in a timely manner to carry out development
activities; our ability to market our oil and natural gas
successfully to current and new customers; the impact of increasing
competition; our ability to obtain financing on acceptable terms and
our ability to add production and reserves through our development
and exploration activities. Although management considers these
assumptions to be reasonable based on information currently available
to it, they may prove to be incorrect. 
By their very nature, the forward-looking statements included in this
press release 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: the volatility of oil and gas prices; production and
development costs and capital expenditures; the imprecision of
reserve and resource estimates and estimates of recoverable
quantities of oil, natural gas and liquids; Pengrowth's ability to
replace and expand oil and gas 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; inadequate insurance coverage; changes in
environmental or other legislation applicable to our operations, and
our ability to comply with current and future environmental and other
laws and regulations; actions by governmental or regulatory
authorities including changes in royalty structures and programs and
income tax laws or changes in tax laws and incentive programs
relating to the oil and gas industry; our ability to access external
sources of debt and equity capital, various risks associated with our
Lindbergh thermal project, and the implementation of greenhouse gas
emissions legislation. Further information regarding these factors
may be found under the heading "Risk Factors" in our most recent
Annual Information Form and under the heading "Business Risks" in our
most recent year-end Management's Discussion and Analysis and in our
most recent consolidated financial statements, management information
circular, quarterly reports, material change reports and news
releases. Copies of our Canadian public filings are available on
SEDAR at www.sedar.comwww.sedar.com. Our U.S. public filings,
including our most recent Form 40-F as supplemented by our filings on
form 6-K, are available at www.sec.gov.edgar.shtml.  
Readers are cautioned that the foregoing list of factors that may
affect future results is not exhaustive. When relying on our
forward-looking statements to make decisions with respect to
Pengrowth, 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 we do 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 law. 
The forward-looking statements contained in this press release are
expressly qualified by this cautionary statement.  
This press release references pilot production results and steam oil
ratios for the Lindbergh pilot project that are not necessarily
reflective of long-term production results, production profiles,
steam oil ratios or ultimate performance of these wells or the
project.
Contacts:
Pengrowth Energy Corporation
Investor Relations
(403) 233-0224 or Toll Free: 855-336-8814
investorrelations@pengrowth.com
(403) 693-8889 (FAX)
www.pengrowth.com
 
 
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