TD Unconventional Energy Conference July 6-7, 2011 On Track - Thundering Ahead
4 PENGROWTH ENERGY CORPORATION Corporate Profile Market Capitalization1 Enterprise Value Monthly Dividend Current Yield Total Debt2 Debt to Cash Flow3 Shares O/S Tax Pools $4.1 Billion $5.2 Billion $0.07 per share 6.8% $1.1…
5 PENGROWTH ENERGY CORPORATION Production1 Production Mix Reserves (P+P)2 Reserve Life Index (P+P) Undeveloped Land 73,634 boe per day ~ 50% liquids ~50% Natural Gas 318 MMboe 11.1 years ~ 900,000 Net Acres ?Oil & Gas E&P…
6 PENGROWTH ENERGY CORPORATION ? Create value for our shareholders ? Focus on developing operated resource plays in the Western Canadian Sedimentary Basin that have: ? Focus on large accumulations of oil and gas ? Utilize new…
7 PENGROWTH ENERGY CORPORATION 0 400 800 1,200 1,600 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 Development of resource plays driven by: ? Commodity prices ? Technical…
8 PENGROWTH ENERGY CORPORATION Extensive Resource Inventory ALBERTA BRITISH COLUMBIA Fort McMurray SASKATCHEWAN Calgary Edmonton Montney Gas 2.5 Tcf DPIIP Swan Hills Carbonates 2.3 Billion bbls OOIP Olds Multi Zone Liquids…
9 PENGROWTH ENERGY CORPORATION Evie Absent Evie Absent EVIE ISOPACH Gunnel Horn River Basin Opportunity Large shale gas resource potential - Evie Technology Horizontal multi-stage frac Size of the prize ~ 9.5 Tcf of DPIIP…
10 PENGROWTH ENERGY CORPORATION Groundbirch/ Montney Gas Opportunity Montney gas focused opportunity with deep drilling inventory Technology Horizontal multi-stage frac Size of the prize Upper Montney ~2.5 Tcf of DPIIP Estimated…
11 PENGROWTH ENERGY CORPORATION Infrastructure limitations Cost/availability of services Swan Hills Carbonates (Undeveloped) Opportunity Establish economic production from tight oil bearing carbonate rock Technology Horizontal…
12 PENGROWTH ENERGY CORPORATION Opportunity Increase recovery factor on existing pools Size of the prize 5% to 15% increase in recovery factor equates to 115 to 345 mmbbls Development Timeline Ongoing Limitations Access to CO 2…
13 PENGROWTH ENERGY CORPORATION Lindbergh/SAGD Opportunity Oil sands development with long life RLI Technology Steam Assisted Gravity Drainage (SAGD) Size of the prize 0.5 Billion bbls of OOIP 193 mmbbls Estimated Economic…
14 PENGROWTH ENERGY CORPORATION Bodo/Polymer EOR Opportunity Increase recovery factor on existing heavy oil pools Technology Utilize polymer hydrated with saline water to increase water flood effectiveness Size of the prize ~ 16…
15 PENGROWTH ENERGY CORPORATION Ready to grow ? Right assets ? Significant opportunities within asset base for organic development ? Focused efforts on four core operated areas ? Right people ? Significant technical capabilities…
18 PENGROWTH ENERGY CORPORATION 2011 Guidance 2011 Expected exit production (Boe/d) 77,000 to 78,000 2011 Guidance Capital Budget $550 Million 2011 Average Production (Boe/d) 74,000 to 76,000 Operating Costs $13.54 per Boe General…