Guidance
2012 Guidance:
Pengrowth's 2012 Capital Program is focused on development of oil and liquids rich gas plays in three key areas: Swan Hills - light oil, the Lindbergh - SAGD pilot and the Olds area liquids rich gas.
Pengrowth's 2012 capital program of $625 million represents a three percent increase from the estimated 2011 capital program. Execution of the 2012 capital program is expected to generate full year average production of between 74,500 and 76,500 boe per day, an increase of approximately two percent from our estimated full year 2011 average production of 74,000 boe per day. Our average production estimate for 2012 excludes any production associated with the Lindbergh pilot project.
Highlights of the 2012 capital program include:
- 100 percent of the drilling and completions program is focused on oil and liquids rich gas projects.
- Liquids as a percentage of production are expected to increase from 51% to 54%.
- The majority of planned operated projects have forecasted recycle ratios in excess of 2.3 times.
- Production is expected to increase year-over-year by approximately 2%.
- Capital expenditures and cash dividends will be balanced by cash flow and select non-core asset dispositions.
- The Lindbergh pilot project is expected to have first steam injected by the end of January 2012.
- $59 million of capital is being directed to the Lindbergh project, prior to commercial production.
| 2012 Guidance | Low | Median | High |
|---|---|---|---|
| Production Volumes (boe per day) | 74,500 | 75,500 | 76,500 |
| Operating Costs ($ millions) | $384 | ||
| Operating Costs ($ per boe) | $13.89 | ||
| General and Administrative Expense ($ per boe) | $2.68 | ||
| Capital Expenditures Before Alberta Drilling Royalty Credit ($ millions) | $625 |