Joint News Release: Pengrowth Energy Corporation and NAL Energy Corporation Announce Shareholder Approval of Strategic Business Combination
CALGARY, ALBERTA--(Marketwire - May 23, 2012) - Pengrowth Energy Corporation ("Pengrowth") (TSX:PGF) (NYSE:PGH) and NAL Energy Corporation ("NAL") (TSX:NAE) (TSX:NAE.DB) (TSX:NAE.DB.A) (TSX:NAE.DB.B) are pleased to announce that the holders of common shares of NAL have approved the proposed business combination of Pengrowth and NAL pursuant to a plan of arrangement under the Business Corporations Act (Alberta) (the "Arrangement"). Under the terms of the Arrangement, NAL shareholders will receive 0.86 of a Pengrowth share for each NAL share held. The Arrangement was approved by approximately 96 percent of the votes cast by NAL shareholders at the annual and special meeting of NAL shareholders held today. The Arrangement is more fully described in the joint management information circular and proxy statement of Pengrowth and NAL, dated April 20, 2012, which may be viewed at www.sedar.com.
At the meeting of its shareholders also held today, Pengrowth received shareholder approval for the issuance of up to 163,964,889 Pengrowth common shares pursuant to the Arrangement. The resolution was approved by approximately 98 percent of the votes cast by Pengrowth shareholders at the Pengrowth meeting.
NAL expects to receive approval of the Arrangement by the Court of Queen's Bench on May 24, 2012.
The completion of the Arrangement is subject to certain other closing conditions customary in transactions of this nature. The Arrangement is scheduled to close on May 31, 2012.
Derek Evans, Pengrowth's President & CEO, said "I am pleased that the shareholders of both Pengrowth and NAL have approved the proposed combination, which will enable Pengrowth to improve capital efficiency, better fund projects internally and continue to shift our production mix toward oil."
ABOUT PENGROWTH
Pengrowth Energy Corporation is a dividend-paying, intermediate Canadian producer of oil and natural gas, headquartered in Calgary, Alberta. Pengrowth's focus is on the development of conventional and unconventional resource-style plays in the Western Canadian Sedimentary Basin. Pengrowth's projects include the Swan Hills (light oil) play in north-central Alberta, the Olds (light oil/gas) play in south-central Alberta, the Lindbergh Steam Assisted Gravity Drainage ("SAGD") project in east-central Alberta and the Bodo (EOR polymer) play in east-central Alberta. Pengrowth's shares trade on both the Toronto Stock Exchange under the symbol "PGF" and on the New York Stock Exchange under the symbol "PGH".
ABOUT NAL
NAL Energy Corporation generates returns for its shareholders by pursuing a strategy of acquiring, producing and selling crude oil, natural gas and natural gas liquids from assets based in southeastern Saskatchewan, central Alberta, and northeastern British Columbia. NAL's shares trade on the Toronto Stock Exchange under the symbol "NAE".