Pengrowth Energy Corp. (NYSE, TO: PGH) has completed the divestiture of its non-core Weyburn asset.
Proceeds from the sale were C $316 million, net of interim closing adjustments. Proceeds will be used to repay all outstanding bank debt and will partially fund Pengrowth's 2013 capital program.
This leaves Pengrowth undrawn on its C $1 billion credit facility and with C $1.6 billion of long-term debt outstanding, composed of long-term notes and convertible debentures.
Pengrowth is in the process of divesting additional assets with up to C $700 million of value. The company will update the market on the progress of its disposition program over the coming months. Proceeds will be used to fund the first commercial phase of the Lindbergh thermal project in 2014 and to reduce debt further, while protecting the sustainability of Pengrowth's dividend.
Pengrowth Energy Corp. engages in the acquisition, exploration, development, and production of oil and natural gas reserves in Canada. The company is headquartered in Calgary.