Pengrowth Energy Corp. (NYSE: PGH) said March 20 it reached an agreement to sell noncore assets as part of the Calgary, Alberta-based company's strategy to streamline its portfolio and lower debt.
For C$180 million cash, an undisclosed Calgary-based private company will acquire a portion of Pengrowth's Swan Hills assets in north-central Alberta. The assets generated production of about 4,920 barrels of oil equivalent per day (roughly 82% liquids) during fourth-quarter 2016.
Pengrowth said it plans to use a portion of the sale proceeds to prepay the remaining outstanding US$100 million (C$134 million) of 2017 senior notes. Pro forma for the prepayment, the company's net debt will fall to about C$970 million with no outstanding debt maturities for the remainder of 2017.
Deloitte Corporate Finance was exclusive financial adviser and agent to the undisclosed buyer in structuring and financing the transaction. In addition, Burgess Energy Advisors and Shea Nerland Law were legal advisers to the buyer.
Recommended Reading
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
ONGC’s M Field Starts Production in Bay of Bengal
2024-01-09 - ONGC’s M Field represents the second phase of the larger 98/2 Block development project which is expected to reach peak production of 45,000 bbl/d and 10 MMcm/d.
Activity Offshore Norway Expected to Remain Steady in 2024
2024-01-11 - The Norwegian Offshore Directorate provided updates on 2023 activity, including 14 wildcat discoveries and eight projects going online and urging exploration in frontier areas.
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-01-05 - The oil and gas rig count, an early indicator of future output, fell by one to 621 in the week to Jan. 5.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-01-12 - The oil and gas rig count, an early indicator of future output, fell by two to 619 in the week to Jan. 12, the lowest since November.