Pengrowth strips down its holdings to focus on the Lindbergh project

Pengrowth strips down its holdings to focus on the Lindbergh project

Pengrowth Energy says it plans to focus on only two key assets over the next few years - the Lindbergh in-situ facility and the Groundbirch natural gas property in northeastern BC. Following a series of asset divestitures this past year, 90% of the company's production and 95% of its reserves now come from Lindbergh and Groundbirch.

Lindbergh is a steam-assisted gravity drainage (SAGD) facility located in the Cold Lake area, extracting bitumen from the Lloydminster formation. The facility has regulatory approvals in place for 40,000 bbl/day of production. Lindbergh accounts for almost 60% of the company's production, while a portion of Groundbirch's gas production is used as feedstock for steam and power at the SAGD facility.

Lindbergh has a nameplate capacity of 12,500 bbl/day but currently produces about 15,000 bbl/day at a steam-to-oil ratio of 3.0.

 

SOURCE: PENGROWTH ENERGY 2018 INVESTOR PRESENTATION

 

Pengrowth has allocated $33 million in capital this year for optimization work and the drilling of eight infill wells sometime this spring. The company says it plans to exit 2018 closer to 18,000 bbl/day. 

Pengrowth ultimately wants to expand production to as much as 50,000 bbl/day through "small highly efficient capital bolt on projects."


SOURCES:
PENGROWTH ENERGY • Q4 & FULL YEAR 2017 RESULTS & RESERVES • FEB 28, 2018
PENGROWTH ENERGY • FOURTH QUARTER AND ANNUAL REPORTS: MD&A • FEB 28, 2018
PENGROWTH ENERGY • INVESTOR PRESENTATION: FEBRUARY 2018 • FEB 1, 2018
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