CALGARY, A.B. — Pengrowth Energy Corporation said in its third quarter results that it is focusing on growing its asset base in the Montney Region. Pengrowth said that it is focused on a portfolio that consists of two key long-term growth assets, including its assets near Groundbirch.
Derek Evans, President and CEO of Pengrowth commented “The Company and our teams have worked relentlessly this year to execute on our asset disposition program and to enable us to focus on our key growth assets. The work that we have done has transformed Pengrowth into a leaner, focused company that is poised to deliver on its long-term development strategy, upon a sustained recovery in crude oil prices, resulting in significant growth in production and associated cash flow over the next five years.”
At Groundbirch, $18 million initiated a program that includes the drilling of four wells, with the drilling of the first well in the program commencing in the third quarter. These new wells are expected to be completed and tied-in during the first quarter of 2018, growing natural gas sales to about 30 million cubic feet per day from the current production of 9 MMcf per day. $4.5 million of the $18 million of capital allocated to the Groundbirch drilling and infrastructure program was spent in the third quarter of 2017.
The capital work undertaken at Groundbirch is being completed within the original $125 million capital budget that the Company had allocated at the start of 2017.