Pengrowth Achieves $700 Million Disposition Target, Fully Funding Phase One of Lindbergh Development

Pengrowth Achieves $700 Million Disposition Target, Fully Funding Phase One of 
Lindbergh Development 
CALGARY, ALBERTA -- (Marketwired) -- 07/16/13 -- Pengrowth Energy
Corporation (TSX:PGF)(NYSE:PGH) today announced that it has entered
into agreements for the successful completion of its $700 million
non-core asset disposition program previously announced on January
11, 2013. The net proceeds from the disposition program will be used
to fund ongoing capital expenditures, including fully funding the
remaining budgeted capital expenditures associated with the 12,500
barrels per day (bbl/d) first commercial phase of the Lindbergh
thermal project, which received regulatory approval on July 15, 2013. 
The expected net proceeds from these non-core asset dispositions, in
addition to the $316 million net proceeds received from the
previously announced Weyburn non-core asset divestiture in March of
this year, will bring total 2013 non-core disposition proceeds to
approximately $1.0 billion.  
"As we have outlined throughout the year, our focus in 2013 has been
to demonstrate that we have the funds in hand to develop the first
commercial phase of the Lindbergh project," said Derek Evans,
President and Chief Executive Officer of Pengrowth. "These combined
transactions achieve our goal of disposing of $1.0 billion of
non-core assets in 2013 and fully funding the first commercial phase
of the Lindbergh development. We are very pleased with the results of
our disposition program, particularly given the competitiveness of
the current asset disposition market."  
Southeast Saskatchewan Non-Core Asset Disposition 
As part of the $700 million, Pengrowth is pleased to announce that it
has entered into an agreement to sell its interests in its non-core
southeast Saskatchewan properties to a junior Canadian oil & gas
company for $510 million, subject to closing adjustments.  
The assets being sold currently produce more than 5,700 barrels of
oil equivalent per day (boe/d) (93% liquids) and had proved plus
probable reserves of 21.3 million barrels assigned to them at
December 31, 2012, according to the independent reserve evaluators
GLJ Petroleum Consultants Ltd.  
Subject to customary regulatory and other closing conditions, the
southeast Saskatchewan disposition is expecte
d to close in
mid-September 2013 and will have an effective date of June 1, 2013.
BMO Capital Markets is acting as financial advisor to Pengrowth on
this transaction.  
Additional Asset Dispositions 
In addition to the southeast Saskatchewan disposition, Pengrowth has
closed or has letters of intent executed with purchasers for an
additional $203 million of non-core assets, representing
approximately 5,900 boe/d of net production (72% natural gas) and
29.0 mmboe of associated proved plus probable reserves. Average
implied transaction metrics for these minor additional dispositions
equates to approximately $34,400 per flowing barrel and $7.00 per boe
of proved plus probable reserves. These additional transactions have
various closing dates throughout 2013. 
Financial and Guidance Update  
At June 30, 2013, Pengrowth had $1.4 billion of fixed term notes and
$234 million of convertible debentures outstanding and was undrawn on
its $1.0 billion committed bank facility. Following closing of these
dispositions, at September 30, 2013, Pengrowth expects to remain
undrawn on its bank facility and anticipates having $575 million of
cash on hand, a portion of which will be used to fund fully the
capital expenditures associated with the first commercial phase at
On a pro-forma basis, following these transactions, Pengrowth is now
projecting fourth quarter 2013 production to average between 75,000
and 77,000 boe/d. A full summary of updated guidance estimates for
2013 is provided below:  

                                          Original Guidance Updated Guidance
Average daily production volume (boe/d)    85,000 to 87,000 82,000 to 84,000
Total capital expenditures ($millions)(1)               770              770
EBITDA ($millions)(2,3)                                 680              650
Net operating costs ($ per boe)              14.00 to 14.50            14.75
G & A expense (cash and non-cash) ($ per                                    
 boe)(4)                                               3.30             3.50
    1.  Includes $300 million at Lindbergh                                  
    2.  Earnings Before Interest, Taxes, Depletion, Depreciation, Accretion 
        and Amortization                                                    
    3.  Assumes WTI USD$90/bbl, 9% discount for light oil, 23% discount for 
        heavy oil and AECO Cdn$3.50/Mcf                                     
    4.  Includes $0.47/boe of non-cash G & A                                

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". 
Derek Evans, President and Chief Executive Officer 
For further information about Pengrowth, please visit our website 
Caution Regarding Forward Looking Information  
Advisory Regarding Reserves, Contingent Resources and Production
All amounts are stated in Canadian dollars unless otherwise
specified. All reserves and production information herein is based
upon Pengrowth's company interest (Pengrowth's working interest share
of reserves or 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
obligations and using GLJ's January 1, 2013 forecast prices and costs
as disclosed herein. Numbers presented may not add due to rounding.  
The estimated value of reserves disclosed in this press release do
not represent fair market value of the reserves.  
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
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 sale of the Corporation's SE
Saskatchewan properties, the use of sale proceeds, anticipated
closing and effective dates for the SE Sa
skatchewan assets and other
asset sales, the net proceeds from such sales and the use of such
proceeds, proforma cash on hand and debt balances, 2013 and 2014
capital expenditures, Q4 2013 estimated production, 2013 production
and guidance update and future capital spending on Lindbergh.
Statements relating to reserves are forward-looking statements, as
they involve the implied assessment, based on certain estimates and
assumptions that the reserves described exist in the quantities
predicted or estimated and can profitably be produced in the future.  
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 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 Our U.S. public filings, including our most
recent Form 40-F as supplemented by our filings on form 6-K, are
available at  
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. 
Pengrowth Energy Corporation
Investor Relations
(403) 233-0224 or Toll Free: 855-336-8814
(403) 693-8889 (FAX)
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