Pengrowth Energy Corporation (TSX:PGF)(NYSE:PGH) announces that it has closed its previously announced sale of its non-producing Montney lands at Bernadet in North East British Columbia for cash consideration of $92 million. The cash proceeds will help further strengthen the Company's balance sheet.
The closing of the Bernadet sale coupled with the recently announced Swan Hills disposition are expected to generate approximately $272 million of additional cash proceeds in the second quarter, which the Company expects to use for further debt reductions. Proforma the closing of these dispositions and the application of the proceeds to the prepayment of term debt, the Company's debt is expected to have been reduced by approximately 48 percent since December 31, 2016.
Pengrowth continues to look at additional potential dispositions to address the remaining maturities, while also continuing to work to amend the covenants in our remaining term notes to reflect the current commodity price environment.
Pengrowth Energy Corporation is a Canadian intermediate energy company focused on the sustainable development and production of oil and natural gas in Western Canada. The Company is headquartered in Calgary, Alberta, Canada and has been operating in the Western basin for over 28 years. The Company's shares trade on both the Toronto Stock Exchange under the symbol "PGF" and on the New York Stock Exchange under the symbol "PGH".
SOURCE: Pengrowth Energy Corporation
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