Pengrowth Energy Corp. (PGH) Reports Q1 FFO of $0.27

Pengrowth Energy Corp. (NYSE: PGH) reported Q1 FFO of $0.27, versus $0.20 reported last year.

Highlights:

--  Production for the quarter averaged 75,102 boe/d, primarily driven by strong oil production from wells targeting the Cardium formation in the Greater Olds/Garrington area. Pengrowth is on track to achieve its full year guidance of 71,000 to 73,000 boe/d.



--  Pengrowth has updated its internal estimates of reserves at Lindbergh, which suggest it may be able to reclassify a significant portion of contingent resources to total proved and total proved plus probable (2P) reserves (in the range of 70 to 90 million bbls 2P) at Lindbergh. This reclassification would be primarily the result of additional delineation drilling which took place earlier this year and the larger development area associated with the Environmental Impact Assessment application that Pengrowth submitted in December 2013 to expand the thermal project to 30,000 bbl/d. Pengrowth has engaged GLJ Petroleum Consultants Ltd. to provide an independent Lindbergh reserves and contingent resource update prior to Pengrowth's Annual General Meeting on June 24, 2014.



--  Lindbergh pilot performance continued to show strong results, with combined production from the two well pairs averaging 1,780 bbl/d during the quarter. The average ISOR for the pilot in the quarter was 2.1.



--  Approximately 75 percent of budgeted capital for Lindbergh's first commercial phase has been spent or committed as of April 30, 2014. All major equipment is on site and in place. Capital costs for the first commercial phase are now expected to be approximately $630 million, an increase of about seven percent from previous estimates. The project remains on track for first steam in the fourth quarter of 2014 and first production in the first quarter of 2015.



--  Total capital expenditures in the quarter were approximately $234 million, with 92 percent spent on drilling, completions and facilities.  In the quarter Pengrowth drilled 46 (29.6 net) non-thermal wells and 54 (54 net) thermal wells at Lindbergh.



--  Continued financial strength, with approximately $315 million of cash on hand as at March 31, 2014 and an undrawn $1.0 billion credit facility.

For earnings history and earnings-related data on Pengrowth Energy Corp. (PGH) click here.

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