Where Pengrowth is Now and Where We Are Growing
It's an exciting time to be in the oil and gas industry, with fascinating opportunities unfolding at Pengrowth. While maintaining our conventional assets, including Swan Hills light oil, Greater Olds / Garrington light oil and liquids-rich natural gas, we are turning our focus on further developing the Lindbergh Thermal Project, located in East Central Alberta, near Cold Lake.
Our operational expertise is in the Western Canadian Sedimentary Basin. We rely on our expertise to help offset production declines in our conventional oil and natural gas properties as well as develop new production in less mature properties. Our inventory of undeveloped land and opportunities provides future drilling opportunities for the short and mid-term. Our strategy is to utilize cash flow from conventional operations to support our dividend and partially fund the development of our Lindbergh Thermal Project, whose low declines, long reserve life and capital efficiencies are expected to produce long-term stable cash flow.
OUR Vision is to Become a Growing Thermal Heavy Oil Producer
With our diverse geographical locations across the Western Canadian Sedimentary Basin and offshore Atlantic Canada, Pengrowth's current assets consist of an even balance between oil and gas. This balance allows for flexibility in fluctuating market conditions.
Funding Summary (estimated)
Pengrowth's non-core asset disposition program has generated total proceeds of over $1.0 billion so far this year and is now essentially complete. As at September 30, 2013, Pengrowth had approximately $580 million of cash on hand and expects to use these proceeds to balance cash inflows and outflows through the course of 2013 and 2014, while investing to bring the first 12,500 barrel per day (bbl/d) commercial phase of Lindbergh on stream.