Quarterly / Earnings Reports | Production | Second Quarter (2Q) Update | Capital Markets | Capital Expenditure | Drilling Program - Wells
Despite Q2 Production Down 13% YOY, Pengrowth Confident for 2H 2017
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Pengrowth released its Q2 results. Highlights include:
- Produced an average of 49,349 boe/d in Q2, which was a decrease of about 13% from the 56,735 boe/d in Q2 2016.
- Production in 1H 2017 was 51,143 boe/d, which is 20.3% higher than the midpoint of the production guidance for 2017 (41,500 - 43,500 boe/d)
- In 1H 2017, closed on $827 million of assets sales
- Total capex for 1H 2017 was $56.2 million
Pengrowth produced an average of 49,349 in Q2, a decrease of ~13% from Q2 2016 when the company's average daily production was 56,735 boe/d in Q2 2016. The company attributes this decrease in production to missed production from divested properties, other natural declines, and maintenance activities on existing properties. Production in 1H 2017 was 51,143 boe/d, which is 20.3% higher than the midpoint of the company's 2017 production guidance of 41,500 to 43,500 boe/d.
By the end of 1H 2017, Pengrowth closed on $827 million from asset sales. There were four different transactions with a value ranging from $92 million to $300 million. Despite selling four properties, the company only reduced the amount of reserves by 18%. Additionally, the company's capex from 1H 2017 was $56.2 million, which is 44.96% of the company's 2017 capex guidance of $125 million.
Pengrowth's main operational focus in 1H 2017 was on its Lingbergh Thermal Project. The Q2 production from the project was 13,657 bbl/d with an average oil ratio of 2.8 times. The 2 infill wells Pengrowth drilled in Q1 produced a combined rate of 1,000 bbl/d during Q2. The company invested $30.6 million in Phase One during Q2. The capital was used to drill 11 wells (6 producer, 5 injector). Pengrowth is further planning 7 new well pairs and 2 new infill wells as part of its optimization program. The company anticipates the new well pairs will begin producing in early 2018.
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