RESULTS OF OPERATIONS (All volumes, wells and spending amounts stated below reflect Pengrowth’s net working interest unless otherwise stated.)
CAPITAL EXPENDITURES In the second quarter of 2012, Pengrowth spent $109.2 million on capital expenditures excluding property acquisitions and dispositions. Approximately 79 percent of capital expenditures were spent on drilling, completions and facilities, with the remaining 21 percent spent on land, seismic and maintenance capital. Three months ended June 30, Mar 31, June 30, 2012 2012 2011
($ millions) Drilling, completions and facilities (1) Land & Seismic
acquisitions (2)
Six months ended June 30, June 30, 2012 2011
86.0
122.7
134.1
208.7
252.6
2.1
12.8
12.7
14.9
14.1
Maintenance capital
19.4
18.1
12.1
37.5
29.4
Development capital
107.5
153.6
158.9
261.1
296.1
1.7
0.1
3.3
1.8
6.8
Capital expenditures
109.2
153.7
162.2
262.9
302.9
Property acquisitions
15.3
27.1
1.7
42.4
3.1
Proceeds on property dispositions
(0.3)
(2.0)
(5.6)
(2.3)
(5.7)
178.8
158.3
Other capital (3)
Capital expenditures including net cash acquisitions
124.2
(1)
Prior periods restated to conform to presentation in the current period.
(2)
Seismic acquisitions are net of seismic sales revenue.
(3)
Other capital includes equipment inventory and material transfers.
303.0
300.3
DRILLING ACTIVITY Pengrowth participated in the drilling of 20 wells (13.1 net) in the second quarter of 2012. Q2 2012 Gross Net
Q1 2012 Gross Net
YTD 2012 Gross Net
Focus Areas (1) Swan Hills
8
7.9
15
8.2
23
16.1
Lindbergh
–
–
18
18.0
18
18.0
Olds/Garrington/Lochend
3
2.2
4
2.6
7
4.8
9
3.0
31
8.7
40
11.7
20
13.1
68
37.5
88
50.6
Other Areas
(1)
Total wells drilled Drilling activity reflects both operated and non-operated properties.
(1)
10
PENGROWTH Second Quarter 2012 Management’s Discussion & Analysis