PGF 2nd quarter update Operations
Conventional
Pengrowth's conventional oil and gas assets include many large, contiguous properties. The Greater Olds/Garrington area comprises over 500 gross sections of Cardium rights, with extensive infrastructure and significant operatorship. The Swan Hills trend is a significant conventional oil resource, providing long-term, low decline production and strong funds flow for the Company. Strong cash flow from these assets is integral to funding Pengrowth's sustainable growth model into the future.
In the second quarter, Pengrowth continued to achieve strong drilling and completion results, with 11 (6.1 net) wells being drilled in the Cardium formation with 100 percent success. Based on initial test data and early production results, the Cardium wells appear to be meeting or exceeding type curve expectations. In addition, the Lochend battery expansion was completed and the increased capacity was online in May, allowing additional Cardium wells to be tied into the facility.
The remainder of the conventional operated and non-operated development program in the quarter was focused on oil opportunities, as Pengrowth drilled nine (6.6 net) wells in Jenner, South East Saskatchewan and other areas.