Pengrowth arranges $300-million sale of production assets, lowers output target

CALGARY – Pengrowth Energy Corp. (TSX:PGF) says it has a new agreement to sell producing assets in the Olds-Garrington area of central Alberta for $300 million cash.

The Calgary-based oil and natural gas company says due to the sale, it now expects to produce an average of between 41,500 and 43,500 oil-equivalent barrels per day in 2017, down from the previous estimate of between 43,500 and 45,500 barrels per day.

Pengrowth says a previously announced deal to sell an asset package in the Swan Hills area of northern Alberta has been terminated due to the buyer’s inability to arrange financing.

The company plans on resuming efforts to find another buyer for the Swan Hills assets as it tries to reduce its debt load from proceeds of its non-core assets.

It did not identify the buyers in either of the transactions.