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.
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."