Pengrowth’s core assets include the Lindbergh thermal oil field, now in phase one of development, Cardium light oil, and Montney natural gas projects. This asset base provides PGF with large oil in-place conventional plays and large lower-risk resource plays with 416K net acres of land.
The Lindbergh first phase is outperforming its nameplate volumes as the steam oil ratio is 2.3 times versus the forecast of a 4.0 times over the life of the project. At a cost of $650M Lindbergh Phase One came on in Q2/15 and has ramped up to 15,400 boe/d in Q4/16. In Q1/Q2, 2017 PGF will spend $80M drilling seven new well pairs and expanding the associated steaming infrastructure, lifting Q4/17 exit level production to 18,000-19,000 boe/d. By 2020 PGF expects to have thermal production up to 40,000 b/d and have commenced an additional 6,000+ b/d from a joint venture with Koch at Selina, 30km NE of Lindbergh. This should come on stream by 2022.
PGF sees 8Tcf in-place with 1,000+ drilling locations in the Groundbirch area. The issue here is take away capacity and they won’t see growth in capacity until 2018 when they will obtain up to 18 Mmcf/d of new Nova (TRP) firm natural gas transportation service.