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.
2013 Funding Summary
With the Weyburn sale complete and production on track with guidance , we expect to to fund our planned 2013 capital program, while maintaining the current dividend, with no increase in debt over 2012 levels.
We have made good progress on the sale of non-core assets. The proceeds from these targeted sales are earmarked to support the 2014 funding of the first commercial phase of the Lindbergh thermal project and are not required to fund any capital expenditures or the dividend in 2013.