On a pro-forma basis, following these transactions, Pengrowth is now projecting fourth quarter 2013 production to average between 75,000 and 77,000 boe/d. A full summary of updated guidance estimates for 2013 is provided below:
Original Guidance Updated Guidance----------------------------------------------------------------------------Average daily production volume (boe/d) 85,000 to 87,000 82,000 to 84,000Total capital expenditures ($millions)(1) 770 770EBITDA ($millions)(2,3) 680 650Net operating costs ($ per boe) 14.00 to 14.50 14.75G & A expense (cash and non-cash) ($ per boe)(4) 3.30 3.50 1. Includes $300 million at Lindbergh 2. Earnings Before Interest, Taxes, Depletion, Depreciation, Accretion and Amortization 3. Assumes WTI USD$90/bbl, 9% discount for light oil, 23% discount for heavy oil and AECO Cdn$3.50/Mcf 4. Includes $0.47/boe of non-cash G & A
Pengrowth Energy Corporation is a dividend-paying, intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alberta. Pengrowth's assets include the Swan Hills light oil, Cardium light oil and Lindbergh thermal bitumen projects. Pengrowth's shares trade on both the Toronto Stock Exchange under the symbol "PGF" and on the New York Stock Exchange under the symbol "PGH".
PENGROWTH ENERGY CORPORATION
Derek Evans, President and Chief Executive Officer
For further information about Pengrowth, please visit our website www.pengrowth.com.
Caution Regarding Forward Looking Information
Advisory Regarding Reserves, Contingent Resources and Production Information
All amounts are stated in Canadian dollars unless otherwise specified. All reserves and production information herein is based upon Pengrowth's company interest (Pengrowth's working interest share of reserves or production plus Pengrowth's royalty interest, being Pengrowth's interest in production and payment that is based on the gross production at the wellhead), before deduction of royalty obligations and using GLJ's January 1, 2013 forecast prices and costs as disclosed herein. Numbers presented may not add due to rounding.
The estimated value of reserves disclosed in this press release do not represent fair market value of the reserves.
When used herein, the term "boe" means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may be misleading, particularly if used in isolation. A conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to: the sale of the Corporation's SE Saskatchewan properties, the use of sale proceeds, anticipated closing and effective dates for the SE Saskatchewan assets and other asset sales, the net proceeds from such sales and the use of such proceeds, proforma cash on hand and debt balances, 2013 and 2014 capital expenditures, Q4 2013 estimated production, 2013 production and guidance update and future capital spending on Lindbergh. Statements relating to reserves are forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described exist in the quantities predicted or estimated and can profitably be produced in the future.