Pengrowth Energy sells Bodo oil-producing site for $95M
The sale comes as Pengrowth moves to improve its financial standing
CALGARY—Pengrowth Energy Corp. has agreed to sell a property in eastern Alberta for $95 million, which will be used to reduce the company’s debt.
The property’s purchaser was not disclosed.
The Bodo property produced the equivalent of 2,700 barrels of oil per day on average for first eight months of 2015.
Pengrowth says it still expects to produce between 70,000 and 72,000 barrels per day on average in 2015.
The Bodo sale brings Pengrowth’s total asset sales and committed sales for 2015 to $260 million. The company says it expects to achieve the target of $600 million in dispositions of non-core assets.
Pengrowth announced in September that its dividend will be cut in half to one cent per quarter, starting with the December payment. It’s also suspending its dividend reinvestment plan on Dec. 15.