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Corporate Presentation December,  2010


Advisory Caution Regarding Forward-Looking Information This presentation contains forward‐looking statements within the meaning of securities laws, including the "safe harbor"  provisions  of Canadian securities  legislation  and  the United  States Private Securities Litigation Reform Act of 1995.  Forward‐looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect",  "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an  outlook.    Forward‐looking  statements  in  this  presentation  include,  but  are  not  limited  to,  statements  with  respect  to:  benefits  and  synergies  from Pengrowth's  corporate  and  asset  acquisitions,  business  strategy  and  strengths,  goals,  focus  and  the  efforts  thereof,  acquisition  criteria,  capital  expenditures, reserves,  reserve  life  indices,  estimated  production,  production and reserves additions from our development programs, remaining producing reserve lives, net present values of future net revenue from reserves, commodity prices and  costs,  exchange  rates,  the  impact  of  contracts  for  commodities,  development  plans  and  programs,  tax  effect  and  treatment,  future income  taxes,  taxability  of  distributions,  abandonment and reclamation costs, government royalty rates, expiring acreage and anticipated exploration and development activities.  Statements relating to "reserves" involve the  implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and can profitably be produced in the future. Forward‐looking statements and information are based on Pengrowth's current beliefs as well as assumptions made by, and information currently available to, Pengrowth concerning  anticipated financial performance, business prospects, strategies, regulatory developments, future oil and natural gas commodity prices and differentials between light,  medium  and  heavy oil prices, future oil and natural gas production levels, future exchange rates, the proceeds of anticipated divestitures, the amount of future cash distributions paid by Pengrowth,  the cost of expanding our property holdings, our ability to obtain equipment in a timely manner to carry out development activities, our ability to market our oil and gas successfully to  current  and  new  customers,  the  impact  of  increasing  competition, our  ability  to  obtain  financing  on  acceptable  terms,  and  our  ability  to  add  production  and  reserves  through  our  development and  exploration  activities.   Although  management  considers  these  assumptions  to  be  reasonable  based  on  information  currently  available  to  it,  they  may  prove  to  be  incorrect. By their very nature, forward‐looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other  forward‐looking statements will not be achieved.  We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to  differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward‐looking statements.  These factors include, but  are not limited to: changes in general economic, market and business conditions;  the volatility of oil and gas prices; production and development costs and capital expenditures; the  imprecision  of  reserve  estimates  and  estimates  of  recoverable  quantities  of  oil,  natural  gas  and  liquids;  Pengrowth’s  ability  to  replace  and  expand  oil  and  gas  reserves;    geological,  technical, drilling and processing problems and other difficulties in producing reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions;  increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency  and exchange rates; inadequate insurance coverage; compliance with environmental laws and regulations;  actions by government or regulatory agencies, including changes in tax or  royalty  laws;  the  failure  to  qualify  as  a  mutual  fund  trust;    changes  in  law  or  regulations;  and  Pengrowth’s  ability  to  access  external  sources  of  debt  and  equity  capital; and  the  occurrence of unexpected events involved in the operation and development of oil and gas properties.  Further information regarding these factors may be found under the heading  "Business Risks" in the management’s discussion and analysis for our most recently completed financial year, under "Risk Factors" in our most recent Annual Information Form on Form  40‐F and in other recent filings with the Securities and Exchange Commission and Canadian securities regulatory authorities. Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive.  When relying on our forward‐looking statements to make decisions with respect  to  Pengrowth,    investors  and  others  should  carefully  consider  the  foregoing  factors  and  other  uncertainties  and  potential  events.    Furthermore,  the  forward‐looking  statements  contained  in  this  presentation  are  made  as  of  the  date  of  this  presentation  and  Pengrowth  does  not  undertake  any  obligation  to  up‐date  publicly  or  to  revise  any  of  the  included  forward‐looking  statements,  whether  as  a  result  of  new  information,  future  events  or  otherwise,  except  as  required  by  law.    The  forward‐looking  statements  contained  in  this  presentation are expressly qualified by this cautionary statement.. All figures are in Canadian dollars unless otherwise stated. Production and reserve figures are before royalties.


Corporate Profile Market Capitalization1

$4.3 Billion

Units Outstanding2

325 million

Total Debt

$1.0Billion

Distribution Current Yield

1. Closing price as at December 6, 2010

$0.07 per unit 6.4% 

2.Includes 5 million exchangeable shares


Production Profile Average Production1

72,704 boe/d

Year‐to‐date production

74, 605 boe/d

Production Mix Operated Production Reserves P+P (Dec 31, 2009)

~ 50% liquids ~ 66% 295.7 mmboe

Reserve Life Index

10.6 Years

Undeveloped Land

860,000 Net Acres

1. Average production as at third quarter 2010


Corporate Strategy 


Key Take Aways • The transition at Pengrowth is well underway • We have made substantial progress on all fronts • Financial, asset and people

• Delivered on what we promised • The onion has been peeled • Asset rotation is ongoing

• Lots of opportunity still remains • On our own asset base • In the acquisition market

• Not all of the way there yet • Moving in the right direction with positive internal momentum


What Have We Been Doing? • Undertook serious financial surgery and repair • Long‐term debt reduced by $600 mm • Sustainable business model adopted

• Started asset transition from conventional to  unconventional assets • Identified unconventional opportunities on existing land base • Asset rotation through acquisitions and dispositions

• Building capacity in the organization • Key personnel in key roles • Focus organization on fewer larger needle moving projects • Strengthen technical capabilities


Where are we at? • Financial • • • •

Solid financial footing/foundation Conversion to dividend paying corporation ready to go Debt to cash flow still to high Increased institutional ownership

• Assets • Strong inventory with excellent breadth and depth  • Still more layers on the onion to be peeled • Acquisition opportunities are plentiful

• People • • • •

Focused on four core areas All core areas are operated “nut cracking” core value creation skill set Technical capabilities are improving at all levels


Operating & Financial Performance Q3/2010

Q2/2010

2010 YTD

Production (Boe/d)

72,704

75,517

74,605

Production Expenses ($/Boe)

$12.69

$12.55

$12.91

Cash G&A ($/Boe)

$1.60

$1.74

$1.68

Capital Expenditures ($ Million)

$87.68

$51.66

$203.0

Wells Drilled (Gross/Net)

43/24

15/8

172/110

98%

100%

99%

($Millions)

$143

$170

$465

($/Unit)

$0.48

$0.58

$1.59

Natural Gas ($/Mcf)

$4.67

$4.86

$5.05

Oil & Liquids ($/Bbl)

$67.35

$68.21

$65.20

$0.21

$0.21

$0.63

(Distributions as a % of Cash Flow)

44%

36%

48%

(Distributions + Capex as a % of cash flow)

106%

66%

84%

$1,095

$1,037

1.4x

1.5x

Success Rate (%) Cash Flow(1)

Realized Sales Price(2)

Distributions Declared ($/Unit)

Total Debt ($Million)3 Debt to EBITDA  (1)

Before changes in working capital (2) After commodity risk management (3) Including convertible debentures


2011 Capital Program Focused Capital Program • $400 million program, a 14% increase  from 2010 • Program is designed to be flexible,  scalable and responsive to uncertain  commodity markets • 80% of the program is focused on oil and  liquids rich gas projects • 73% of the program is operated


2011 Capital Program Focused Capital Program • Majority of the projects have recycle ratios in  excess of two times • Economic at US$70 WTI and $3.00 AECO • A portion of the capital program will be  funded with selected non‐core dispositions


2011 Capital Allocation Focused on Operated Properties Area Operated

2011 Capital  $million

12 Month Production Cost(1) $/boe/d

Add + Promote Cost(2) $/boe

Recycle Ratio(3) $/$

Swan Hills Groundbirch Olds/Garrington Lindbergh Other

$107 $55 $37 $50 $44

20,700 14,250 28,200

17.27 7.19 16.90

2.0 1.0 1.8

24,100

15.28

1.9

Operated DCET

$293

24,100

14.13

1.7

Non‐operated DCET Facilities Maintenance Land, Seismic & Other

$42 $50 $15

29,800

16.41

2.5

Total Capital

$400

29,500

14.73

1.8

(1) Capital spent divided by the quotient of the total of first twelve months production and 365 days. (2) Project capital spent divided by the total production for the life of the project. (3) The 2011 net‐back (i.e., 2011 revenue using U.S. $70/bbl WTI, Cdn$3/mcf AECO gas and U.S.$0.95/Cdn$1 minus royalties and 

operating cost) divided by the Add + Promote Cost


2011 Guidance 2011  Guidance

Capital Budget Production (Boe/d)

$400 Million 74,000 to 76,000

Operating Costs 

$13.54 per Boe

General & Administrative

$2.69 per Boe Volume/day

Crude oil (bbl per day) Natural Gas Liquids (bbl per day) Natural gas (mcf per day) Total Volume (boe per day)

29,000 8,500 225,000 75,000*

* Assumes mid‐point of guidance

Budget based on US$70/bbl WTI, $3.00/Mcf AECO


Creation

Olds Viking / Cardium

Lindbergh

Value

Groundbirch

Swan Hills

Pengrowth’s Pillars

Inventory Breadth, Depth, Size & Timing Financial Strength, Flexibility


Financial Strategy


Financial Strategy Balance Sheet • Pengrowth has been focused on debt reduction • Reduced debt by approximately $600 million over past 12  months   • Target debt‐to‐cash flow ratio of between 0.8x and 1.2x and a  debt‐to‐capitalizations ratio of < 30%

• Closed U.S. $187 million term notes offering • Pengrowth’s remaining debt averages 6.3% and 7.2 years

• Ample credit capacity available  • Renewed $1.0 Billion three year committed term credit facility  with $250 million option  


Financial Strategy 2011 Financial Tactics • Debt reduction – Over‐finance acquisitions – Sell assets to increase capital expenditures

• Maintain distributions following conversion • Hedge to improve cash flow certainty


Hedging Strategy Provide stability and lock in returns – Capex – Distributions

Current Positions • Crude – 12,000 bbls/d at CDN $87.87/bbl for 2011 – 4,500 bbls/d at CDN $90.92/bbl for 2012

• Natural Gas – 50,021 mcf/d at CDN $5.72/mcf for 2011


Corporate Conversion

• Special meeting December 16th • Investor appetite for dividends remains high • Canadian investors tax credit • $2.9B in tax pools indicate 5 years before any new tax is paid


Onion Peeling 


Peeling Back Onion Layers of  Pengrowth’s Resource Base  “One‐Well Wonders” • Pengrowth’s  historical inventory   reflected Pengrowth’s old strategy  of  acquire and exploit 

 “Peeled back the Onion Layers” • 2010 was a year of creating an  inventory of Unconventional  Resources


Peeled Back Onion Layers • 65 plays initially identified Identification 65

Proof of Concept 32

• 11 plays dropped • Currently have 22 plays still in  identification phase • 32 plays have started some POC • 5 plays dropped • 18 plays need to finish POC • 10 plays on hold • 8 plays to prove concept

Inventory 8

• 8 have had successful POC


Metrics/description of Key Plays 8 POC in three pillar areas

1 2 3 4

Wells Likely Possible Play number number Reef Gas Condensate 9 53 Reef Oil 5 48 Platform Interior 61 126 Platform Margin 16 26 Swan Hills: 91 253

DCET Cost Likely Possible $million $million $40 $235 $25 $240 $260 $550 $70 $120 $395 $1,145

Reserves Likely Possible MMboe MMboe 3 16 1 8 13 26 4 6 21 56

Typical Metrics Prod Cost Reserve Cost $/boe/d $/boe $13,200 $15.20 $30,000 $30.00 $28,900 $21.00 $29,400 $19.50 $24,700 $20.00

5 6

Montney Doig Groundbirch:

91 20 111

165 44 209

$600 $110 $710

$1,080 $240 $1,320

75 10 85

135 25 160

$17,500 $20,000 $17,900

$8.00 $10.00 $8.30

7 8

Cardium Viking Olds/Garrington:

23 47 70

94 71 165

$80 $200 $280

$330 $300 $630

3 11 14

11 17 28

$40,000 $30,700 $33,900

$29.00 $18.00 $21.35

372

1,127

$1,410

$3,225

122

254

$22,699

$12.80

• 2011 Key POC projects • Lindbergh – pilot under development • Polymer • Progress the other 18 POC projects • Projects with large potential still in portfolio  • Horn River Basin • CO2 EOR


Key Proof Of Concept Results RR Year

Pool

Well ID

Reef Gas Condensate 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2009 Carson Creek "C" 2010 Carson Creek "C" 2010 Carson Creek "C" 2010 Carson Creek "C" 2010 Carson Creek "C" 2010 Carson Creek "C" 2010 Carson Creek "C" 2010 Alexis Pool Average Reef Condensate

00/14‐17‐061‐12W5/0   02/06‐17‐061‐12W5/0   00/13‐19‐061‐12W5/3   00/03‐08‐061‐12W5/0   00/12‐18‐061‐12W5/0   00/07‐18‐061‐12W5/0   00/14‐24‐061‐13W5/2   02/01‐08‐061‐12W5/0   00/08‐18‐061‐12W5/0   00/02‐19‐061‐12W5/0   00/04‐16‐061‐12W5/0   00/06‐25‐061‐13W5/2   00/12‐20‐061‐12W5/0   00/09‐05‐061‐12W5/0   00/11‐07‐061‐12W5/2   100/13‐31‐060‐12W5/0

WI

5‐Day Avg. Gross boe/d

95% 95% 95% 95% 95% 95% 95% 95% 95% 832 95% 813 95% 214 95% 291 95% 1,270 95% 1,180 100% No available results 767

Percent Gas

1 Mo. Avg Gross boe/d 725 776 981 713 585 461 657 329 809 468

3 Mo. Avg Gross boe/d 580 774 880 728 497 406 448 218 765

3rd mo avg Gross boe/d 421 607 602 601 337 413 254 106 545

12 Mo. Avg Gross boe/d 300 383 423

650 42%

588 43%

432 49%

369 53%

256 362 106

201 216 56

173 123 24

241 0%

158 0%

107 0%

Reef Oil 2010

Judy "B" South

02/4‐13‐063‐12W5/0 Percent Gas

Platform Interior 2010 Carson Ck North 00/15‐02‐062‐12W5/2   2010 Judy "A" 00/14‐09‐064‐10W5/0 2010 Deer Mtn 00/15‐23‐068‐09W5/0 2010 Deer Mtn 00/08‐23‐068‐09W5/0 2010 House Mtn 00/16‐25‐069‐11W5/0 2010 House Mtn 00/16‐19‐069‐10W5/0 Average Platform Interior Percent Gas Platform Margin Deer Mtn Unit No results

100%

367 0%

89% Frac'd into R5 ‐ wet 100% 445 100% 644 100% 239 100% 254 100% 444 405

85%

Cardium 2010 Olds/Harmattan 2010 Olds/Harmattan 2010 Olds/Harmattan 2010 Olds/Harmattan Average Cardium

14‐14‐32‐3W5 14‐18‐32‐3W5 4‐34‐31‐3W5 3‐34‐33‐3W5 Percent Gas

Viking 2010

Olds

No results

50% 50% 60% 57%

82 141 265 182 168

40 62 168 138 102 10%


Key Proof of Concept Wells Wells Swan Hills Reef Gas Condensate Reef Oil Platform Interior Platform Margin Total Swan Hills Olds (Cardium / Viking) Cardium Viking Total Olds

15 1 6 4 26

4

5‐Day 1 Mo. Avg Gross Gross boe/d boe/d % Gas    767   650 42% N/A   367 0%    405   241 0% Drilling in‐progress    586   542 34%

3 Mo. Avg Gross boe/d % Gas   588 43%

3rd Mo. Avg 12 Mo. Avg Gross Gross boe/d % Gas boe/d % Gas   432 49%   369 53%

 158

0%  107

 481

39%  350

168 102 10% Drilling & Completions in‐progress 4 168 102 10%

0% 46%  369

53%


Major Projects Tremendous Resource Potential 1.8

9.5 tcf

1.6

10 8

1.2 6

1.0 0.8 0.6

4

0.5 Bbbl

2.5 tcf

0.4

2

0.2 0

0.0 Lindbergh

Horn River

Groundbirch

DPIIP, tcf

OOIP, billion bbl

1.4


Polymer EOR Key Drivers • OOIP over 1 Billion bbl (gross) – 16 chemical EOR candidates • Chemical EOR potential of 200‐300 MMbbl

• Regionally concentrated opportunities • 8 pools with 70% of OOIP potential in Bodo, Cosine & Cactus Lake • Characterized by two types of reservoir (geology & oil) – McLaren and Lloyd

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Property Cactus Lake North McLaren Bodo Upper Mannville B Bodo Upper Mannville T8T Bodo Upper Mannville B Cactus Lake Non‐Unit Enchant J & VV Bodo Upper Mannville A Cosine Lloydminster LK SS Jenner Upper Mannville E Plover Lake Bodo Upper Mannville C Bantry Mannville A Bantry Mannville D Oak Cecil B Oak Cecil C Oak Cecil F Highlighted Pools

OOIP OOIP gross net mmbbl mmbbl 200 200 129 129 140 93 124 124 70 70 81 81 47 47 75 75 30 30 34 34 6 6 123 123 25 25 9 9 8 8 5 5 1,106 1,059 825 778

EOR Estimated Recovery from Surtek RR Polymer AP / ASP P+P Incremental Incremental Incremental Incremental net RF Recovery RF Recovery mmbbl percent mmbbl percent mmbbl 0.8 25% 50 35% 70 0.8 30% 39 42% 54 0.3 24% 22 39% 36 0.5 24% 30 39% 48 0.6 36% 25 50% 35 2.2 24% 19 40% 32 4.4 38% 18 53% 25 0.7 10% 8 20% 15 6.2 15% 5 33% 10 0.5 7% 2 14% 5 34% 2 58% 3 1.0 17% 21 17% 4 0.5 20% 2 0.5 20% 2 0.5 20% 1 19.6 21% 220 34% 364 9 25% 196 38% 292


CO2

Next Steps and Returns • Pilot has confirmed recovery • Economically ‘Challenged’ • CO2 Supply Cost • Government Take including  royalties Other Potential Pengrowth Fields • Fenn Big Valley • Carson Creek • Deer Mountain

Pilot Results CO2 Injected Amount, mmcf Bank size, %  Recovered CO2, % of injected Incremental Oil, bbl Methane, mcf Ethane, mcf Total, boe

1,200 26.2%

24% 56,000 2.8% OOIP 118,000 93,000 92,000 ‘4.6% OOIP’


Horn River  Development Plan 2010 Results to‐date

Apache Nexen

Apache/ Encana Devon

Gunnel North

• a‐87‐C  50 m Evie cored, will 

be used for Microseismic

a‐87‐C

• d‐49‐D successfully drilled Husky

• b‐37‐B new drill: successfully  drilled, cored (113 m) Evie • b‐37‐B vertical completion: 10  day  well test = 470 mcfd • DPIIP: 9.5 TCF

Future Activity

Arc Evie Net Pay C.I. 10.0m

Gunnel South

Pengrowth

Imperial/Exxon

Taqa North

Imperial/Exxon Loc’ns

2D Seismic 

b‐37‐B

Land Base • 30,330 net ha or 113 net sections (136 gross sections) • Gunnel North/South 100% Pengrowth, 10% WI Dilly Creek • Expect majority of lands will be retained for another 10 years

d‐49‐D

Drill to earn lands

Vertical completions to  evaluate the land base

Note:   2011 plans deferred to  2012 due to equipment  availability issues

2009 & 2010 LOCATIONS FUTURE LOCATIONS FUTURE CONTINGENT LOCATIONS


Onion Peeling • Refocusing portfolio on unconventional resources • learning curve instead of just learning

• Have identified key resources to develop on our lands • 2011 Four key areas:  85% of budget operated DCET • • • •

Swan Hills = $107 million Groundbirch = $55 million Olds (Viking / Cardium) = $37 million Lindbergh = $50 million

• Inventory • Continue to build through POC expenditures


Creation

Olds Viking / Cardium

Lindbergh

Value

Groundbirch

Swan Hills

Pengrowth’s Pillars

Inventory Breadth, Depth, Size & Timing Financial Strength, Flexibility


Creation

Olds Viking / Cardium

Lindbergh

Value

Groundbirch

Swan Hills

Pengrowth’s Pillars

Inventory Breadth, Depth, Size & Timing Financial Strength, Flexibility

Pillar One  Swan Hills 


Swan Hills Trend The Opportunity House Mountain Unit No. 1 19.3% WI House Mountain Unit No.2 7.1% WI 3,122 MMboe 

Deer Mountain Unit No. 1 85.4% WI Deer Mountain Unit No. 2

Judy Creek West BHL Unit 100% WI 296 MMboe  Carson Creek Unit 95.1% WI 1.4 MMboe  AB SK

• The Right Place, with the Right People  and the Right Technology • Known resource with 

Swan Hills Unit No. 1 24% WI Virginia Hills Unit 578 MMboe 

• One of the most significant carbonate  oil reservoirs in the WCSB

South Swan Hills Unit 9.5% WI 1,105 MMboe  Judy Creek BHL Unit 100% WI 901 MMboe  Carson Creek North Unit 88.6% WI 456 MMboe 

• 5.4 Bln Bbls OOIP (Gross) • 2.3 Bln Bbls net to Pengrowth

• PGF current production 21,000 boe/d • Utilizing horizontal drilling and multi‐ stage acid fracturing technology to  exploit low permeability (tight)  carbonate reservoir

Pengrowth Lands

• 8 proof of concept plays being evaluated


Proof of Concept Plays Judy and Carson Creek Judy Creek BHL Unit

Judy Creek West BHL Unit

Second Wave Pekisko Drilling Activity

Carson Creek North BHL Unit #1 BHL “C” Pool BHL “C” Pool

Carson Creek BHL Unit #1

PGF Interests

2010 Proof of Concept  Drills


Proof of Concept Plays Deer and House Mountain

Apache Drilling Activity

House Mtn Non‐Unit

Deer Mtn Unit #1 Arcan Drilling Activity

Deer Mtn Non‐Unit

PGF Interests

2010 Proof of Concept  Drills


Swan Hills Trend The 4 Play types Reef Gas Condensate •Carson Ck ‘C’ Pool •Alexis

Reef

Reef Oil •Carson Ck North •Judy Ck South •Judy Creek Interior

Platform Interior •Judy Ck Platform •Carson Ck North •Deer Mtn •House Mtn

Platform Margin •Deer Mtn Unit

Reef Platform Margin

Hz

Platform

# Net Sections:

28

42

32

12

114

Total Potential  Locations:

36

48

102

24

227

Vert 2008 Drills:

5

2

7

Hz 2009 Drills:

9

9

Hz 2010 Drills:

8

2

5

4

19

Avg. 1 Month Rate*:

671 (RR09)

367 (RR10)

241 (RR10)

Avg. 3 Month Rate*:

588 (RR09)

158 (RR10)

Avg. 12 Month Rate*

369 (RR09)

5 day Avg IP*:

767 (RR10)

* boe/d


Swan Hills Trend The 4 Play Types

Reef Gas Condensate

Reef

Reef Oil

Reef

Platform Interior Platform Margin

Platform Margin

Platform

Pengrowth Activity Competitor Activity


Swan Hills Reef Gas Condensate Play e.g. Carson Creek Gas ‐ C Pool • 14 net sections of land • Liquids rich natural gas • 12 mo. Avg. production  =370 boe/d • 9 wells drilled in 2009 • 6 wells drilled in 2010 • Potential for up to 20  additional drilling  locations • Play extends south onto  PGF/Alexis lands


Swan Hills Reef Gas Condensate Play Economics 700 Wells on Prod Type Well

600

9

98%

OOIP (MMbbl/Sec)

2.5‐4.0

8

Average Hz 500

7 6

400

5 300

4 3

200

2 100

1

Fluid Properties 

150 ‐ 175 bbl/mmcf

Recovery Factor

30%

Gross Reserves  Per Well (Mboe)

275

DCET CapEX  Per Well ($MM)

$4.25

Cost of Production ($/boe/d)

$13,200

F & D ($/boe)

$15.36

66

63

60

57

54

51

48

45

42

39

36

33

30

27

24

21

18

15

12

9

6

3

0 0

0

# of Wells

Total Production, boe/d

Working Interest

10

Weeks on Production, Calendar Daily Basis

Swan Hills Reef Gas Condensate Play •Carson Creek “C” Pool •Alexis

Oct. GLJ  Prices Recycle Ratio

2.66

2.26

ROR

>100%

69%

3.5

2.2

NPV BT 15 ($MM)

• very high liquid‐rich gas •Very high working interest lands

$70 WTI/ $4 AECO


Swan Hills Reef Oil Play e.g. Judy Creek Reef Interior • Legacy light oil play • Concentrated land  position • 85 net sections

• Numerous opportunities  incl. new drills, re‐entries,  recompletions, and  workovers • Historical EOR Operations • Hydrocarbon Miscible Flood


Swan Hills Reef Oil Play Economics Reef 

250

Working Interest

HZ Actual

90‐100%

OOIP (MMboe/Sec)

200

3.0

Production (bbl/d)

HZ Type

150

HZ 3‐stage acid  frac

100 50 0 0

12

24

Swan Hills Reef Oil •Carson Creek North •Judy Creek South •Judy Creek Interior •41‐44 API light crude oil •Very high working interest lands

36 Month

48

60

72

Fluid Properties 

42° API

Recovery Factor

15‐25%

Gross Reserves  Per Well (Mboe)

200

DCET CapEX  Per Well ($MM)

$3.20

Cost of Production ($/boe/d)

$21,400

F & D ($/boe)

$16.00 Oct. GLJ  Prices

Recycle Ratio ROR NPV BT 15 ($MM)

$70 WTI/ $4 AECO

4.18

3.56

> 100%

67%

2.6

1.7


Swan Hills Platform Interior Play e.g. House Mountain non‐unit

• At house Mountain,  Pengrowth activity off‐ setting drilling by Apache • At Deer Mountain,  Pengrowth wells off‐setting  Arcan wells


Swan Hills Platform Interior Play Economics Horizontal Multistage Type Curve Daily Normalized (PD) 500

Platform Interior Type Curve

Working Interest

100%

OOIP (MMboe/Sec)

4.7

65% COS

450

Interior Avg. 30 day IPDMNU 15‐23

Producing Day Oil Rate (bbl/d)

400

350

300

250

200

150

100

50

Fluid Properties 

40°API

Recovery Factor

13‐20%

Gross Reserves  Per Well (Mboe)

195

DCET CapEX  Per Well ($MM)

$4.60

Cost of Production ($/boe/d)

$30,660

F & D ($/boe)

$23.50

0 0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

Oct. GLJ  Prices

24

c Months on Production

Swan Hills Platform Interior •Judy Ck Platform •Carson Ck North •Deer Mtn •House Mtn •100% working interest lands

$70 WTI/ $4 AECO

Recycle Ratio

3.40

2.85

ROR

59%

40%

NPV BT 15 ($MM)

2.97

1.96


Swan Hills Platform Margin Play e.g. Deer Mountain Unit #1 •At Deer Mountain,  Pengrowth wells off‐setting  Arcan wells  •Improved recovery factor  due to waterflood EOR •Higher quality carbonate  reservoir (commonly 5‐8%  porosity, 10‐20 mD perm)


Swan Hills Platform Margin Play Economics Horizontal Multistage Type Curve Daily Normalized (PD) 500

Platform Margin Type Curve

450

HZ. Frac Avg. of 15 wells DM Hz. Frac AVG

Working Interest

86%

OOIP (MMboe/Sec)

5.0

Type Curve

Producing Day Oil Rate (bbl/d)

400

Fluid Properties 

40°API

Recovery Factor

32‐43%

Gross Reserves  Per Well (Mboe)

231

DCET CapEX  Per Well ($MM)

$4.50

350

300

250

200

150

100

50

Cost of Production ($/boe/d)

$29,400

F & D ($/boe)

$19.54 Oct. GLJ  Prices

0 0

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

$70 WTI/ $4 AECO

Months on Prod

Months on Production Swan Hills Platform Margin •Deer Mountain Unit •High working interest lands •Attractive economics •Higher recovery factor

Recycle Ratio

3.5

3.15

ROR

54%

43%

NPV BT 15 ($MM)

2.4

1.9


Swan Hills Trend Summary • Pengrowth is the dominant operator in the development of  unconventional tight carbonate reservoirs in the Swan Hills Trend • The Swan Hills Trend is an important core area and makes up 30%  of Pengrowth’s total production • Pengrowth’s net share of the conventional OOIP in this huge  carbonate reef fairway is over 2.3 Bln bbls • With the Right People and the Right Technology, Pengrowth has  proven that these assets have significant growth potential and  opportunity


Pengrowth’s Pillars

Lindbergh

Creation

Olds Viking / Cardium

Groundbirch

Swan Hills

Value

Inventory Breadth, Depth, Size & Timing Financial Strength, Flexibility

Pillar Two Groundbirch


Groundbirch Montney Gas Fairway Competitor Map • Acquired in July, 2010 • Positions Pengrowth  in one of the most  economic gas plays in  N. America  • Dominated by Majors


Montney Thermal Maturity R22 36

R21 31

R20 36

31

R19 36

31

R18 36

R17

31

36

R16 36

31

R15 36

31

R14W6 36

31

31

• Discovered Petroleum 

T82

T82

1

6

36

31

Kobes

1

6

1

6

36

31

36

31

36

3

T81

1

Altares 6

36

1

6

1

6

36

31

36

31

Wet Gas

T80

6

1

6

1

6

31

36

31

36

31

1

6

1

6

36

31

36

31

Monias 36

1

6

1

6

36

31

36

31

Oil window

36

1 31

6 36

Dry Gas 31

1

6 36

1

31

36

6 31

6

1

6

1

6

1

6

36

31

36

31

36

31

36

31

1 31

Sunrise 1

6 36

31

6

36

31

1 36

6

1

6

1

6

1

6

1

6

1

6

1

36

31

36

31

36

31

36

31

36

31

36

31

36

6 36

31

6

11

1

G

6

1

H

6

E

1

F

6

1

10

G

31

1

6

6

1

H

6

T77

1

6

E

F

9

G

end

• Potential for 56 or 84  T78

Swan 1

• 28 mmcf/d by year  T79

1

1

F R21W6 R22

– Doig 0.469 Tcf

Dawson

T77

Fle:

1 36

1

Groundbirch

T78

6 31

Parkland

6

PGF

1

– Upper Montney 2.46 Tcf

T80

T79

6

Initially‐in‐place T81

36

Septimus

1

6 31

H

mmcf/d through  expansion to 2 or 3  gas plants


Upper Montney Structure Pressure/Thickness Monias 22 Mpa 10 m  Upper

Septimus 26 Mpa 100 m  Upper DPIIP NET 2.46  Tcf

Groundbirch 37‐40 Mpa 140 m Upper

Parkland 21 Mpa 65 m  Upper

• Over pressured • Thicker net pay • Minor liquids and no  Dawson 26 Mpa 30 m Upper

Swan Lake 30 Mpa 40 m Upper 20 m Lower

water • Porosity: 4‐7%


Groundbirch Montney Structure Schematic Cross Section W

20 Bcf/sec

>20 Bcf/sec

PGF Groundbirch

Lwr Doig  Siltstone

Shell Sunset

Doig Shale

Doig Phosphates

ARC Parkland

E BC AB

• Reserves in place  increase to the west  due to thicker pay and  higher pressure • DPIIP of 125‐130 Bcf per 

Upper Montney 125 Bcf/sec

100 Bcf/sec

Lower Montney Belloy

section (GLJ 2010)


Groundbirch Value to Pengrowth • Update: 28 mmcf/d facility on‐stream by December 31, 2010  • 5 Upper Montney wells on production by year end (2 new  tests) • 2011 Activity: – Drill to Fill ( Complete 5 wells) – Timing for Plant Expansion (Drill 5 wells and order  equipment for Q1 2012 on‐stream) – Evaluate Doig • Well Inventory of 168 Montney and 44 Lower Doig and Doig  Phosphate wells • RLI and timing for Montney development • Take Advantage of New Technology and Commodity prices to  maximize value


Groundbirch Development Economics 2011 Horizontal Well • Avg depth • Avg well cost • Initial Rate • Ultimate Recovery

• • •

2600m $5.5MM 4.2 MMcfd 5.0 Bcf

Initial Royalty Avg Royalty Avg Opex

25% 16% $1.10/Mcf

Groundbirch Average Type Curve

$5/Mcf

$6/Mcf

GLJ Apr 2010

            33              26

            47              36

                   44                     35

Production Rate, MMcfd

Type Curve 5 Bcf Price File $4/Mcf DCF Rate of Return, %   BTax              20   ATax              17

Qi = 4.2 MMcfd EUR = 5 Bcf

5

4

3

2

1

0

Notes: •Deep gas royalty credit $1MM  •Initial royalty of 25% after royalty credits drawn down

1

7

13

19 Months

25

31


Uncaptured Upside Potential  Incremental Reserves

Incremental Recovery Factor

Existing 15 well Reserve Booking

101 BCF

~ 4%

Develop to 5 wells per section

405 BCF

~17%

Develop to 8 wells per section

315 BCF

~13%

821 BCF

Total ~34%

60 BCF

~26%

96 BCF

~34%

UPPER MONTNEY

TOTAL UPPER MONTNEY DOIG PHOSPHATE Develop to 2 wells per section (20 wells) LOWER DOIG PHOSPHATE Develop to 2 wells per section (24 wells) TOTAL GROUNDBIRCH AREA

977 BCF


Groundbirch Summary • First facility on‐stream in December 2010, adding 4800  boed to Pengrowth • Access to large resource with long RLI and 212 potential  locations • Opportunity to add up to 84 mmcf/d of production  • Montney play provides sustainable value creation • Operating one of the best resource gas plays in North  America with huge potential for growth.


Creation

Olds Viking / Cardium

Lindbergh

Value

Groundbirch

Swan Hills

Pengrowth’s Pillars

Inventory Breadth, Depth, Size & Timing Financial Strength, Flexibility

Pillar Three  Olds Viking/Cardium


Olds/Garrington Cardium/Viking R6

R5

R4

R3

R2

R1W5

R28

R27W4

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FJ J G L FLE F GJ JG GE J JLF G GC F G G G C K E I C F C E L C J G F GJ K G I C I F K J F G G C J I G E IF JEF I F E E I K F G I F I G E A G J G F G G G F C E E F F G C F G F E E J M EJE G J A JE GJJEE JE GA JJ JJJJJ E LCIEG E F J E F J JJ J K F FEE FF F G L J JFC JEEJFEGM E F FA C LI A CE EJJEE IEJ J EG G E G G I J FII EJI F FC FKE EJE JJEJ GICG J F JL J IE JIC L FF E E E M JG IEEA EA J J IE JA FE L FC F JE KG E J C F F JC EC JE J E E JE EG EJ I E J EG J GE E EEJE JEECJI E F FF K K E G F F FJ J GG C E C J F L G J F F L L G C E G C G F J F M E G J M J J E J K I C F F F F G F J E E JJ J J E I JE FFC FI GFI IJ EEED LG FCJ KI JKC FF F FEJF G G FCF FC J EK LGC IC F J E IEEF DG C C G M FM CEK LA G J JI IE JJ J J GF G F G FCEJJG D F G JL CF F F G G EI E G G JJJJJ F G D F K G LE JJEE G F F FF FCC FM E CK JL J J G G FE G IJ FG F F F JI C C LJE G F JEF G C FI EJ EF LEGFG FL J J EE K FG JE EJC J J G G GF F E JE FJ CC ME E MJL M G G AIEE I EE J EI C J K G G FJJ E FJ L FL F S G F KF F F I FC F JJJ L F FL F F KC F F G K G F C E E E F E E C G J C K JL G G J I JE E G I E LG F K G K F G G D F G J E GES G E FJ J F J G CF F G F G EG EG F EA EJ JJG KE F FG F GGKEF G G FIG GG F F CS EFI G AC F EG F G GFFC G G GI K F AE I GJC G F E CC IC EE KC FC E EL C G E C F FK F FC J G F K K EIE E EJ EE F F K GF F F C IF E EJ G F AEIE E E EJ G G G E A E JEG E E K F CG E A LFCEF T34 FL I CFA T34 FI F CC G G EAE E EE K C FK G KE E J A J AE E C EG G S FGE GJ EE EE F F IC EEG K JG EJEEEJ A L C C FFCFAF J K A CC G G JEIE IEGEEEE GG J GG F G C E GJEEJJ GE GJ F J EGG J MF C F GG FCG EEEC I FA F J J I F EE J I F J C F C E C G A E C I E G G FESEGF J J FJ GFC EG E F F F EE F G G S I A KEE E EI EJDIEJEIE E G EIEE C GG M F AEC JEJ GEES IEE F EFE E F J J G F EE G C EJF EE FI SJ E KE AE E EE FJ D IEE IEJE EEJE E AG JG LG FA LEEEEE CG E GFGF EE I FC G IE L ECJD SG E J AF J F E GG EG E E C E S E S A F C A F E E C G FG FF GFG D FG FG GF G G S EG G FA CEEFE CG DEES C E E EE JJE F FA C G E JEJE C S K EF EFAE JG SJ G A E F C C KS F E E GG G EJ C K J EE GF F A E GG DE FA E F F F EJE JG I IC G C AEEEE JE C G F G D C F F GFF K E IAE EFIE E C EJE J J MF IEG EEEG ESJ G GEE EE EJSFIE F F FI E J S G G G CF JA ECG KC CG C FF J I EEE EGF F K FFC FC G F F G E K G F G E JE JEG IECFA K JG F EF G G J S AE C FC FC FA G EFI S EEEE EEE GE FIE J G CG G F F F G F EE E CEE G C F IE C EF FA GG FE A CGC G EE E FGG G F FCFF FF EJGC K JF FA J G E F G I E C FA E ESJ FC F K A E F J C F G E C E C E F F G J I G F A J G C F G G J G G G F E S F G EJ EE G C FF F F FCK FJ J G E EIEJ EE FE C EFC E FFA C K FF A EE E G C G E FD CCC J EG F F F C C F C F F F G G G L G G J FA F F F G F GFI E K G A I F L F KFA F F FC F C G CJ F FC E E FF F G C F J G GJJ E K G EEE L F G J EGE GG F F FA G FK G C LGGKE F FME EJ E EJ FF K F CG EJ F FG G G F LF FCGFG K G KE D F C K F FA F D F C F J F I J E G D E T33 T33 F G E E EEGIEJ F F FA FD G FC F FC F E F FA FG CC G G ED GFF GG F FC F FG FFME G F F LGJJL F FG C G G G G G GG JE FC FAF FA FA FC EF EJEJ E K FE J F K E F G GG F G L K FIC G A FF FAF F G G F FCFCG FF F G G CGFF F EJEM E GJG I I IEFD FF FCK G F G F LF A J G G F F CEF E FA FA K F F G F F FE GF FA F GC E EJG FF FF EJE EFFA G F G F F I E J C E C G F G J F K A F F C C A J F F F F A C C C K F G L FC F F F FCF FF C JE D EG FAFA FCE G G G G EG G FEEEEJ KC F F AG F E FA CG C EFJ I FK JEFM JIG E F FCFG G F K GF FGF FA F F C FF FA G E GD F F F LDF C FA F F FA K LE IEG F C EG G CG I EG E J G E EG S G FEEJE C E FF A F E G KK G FL GF C F C GK F FC F F C IJEEEGJ E F G K F F FC F FC K G G G G K A GE EFC GFE GF E EG J EE M G F C GFC G K FF G GJG EGI FF EJDGE C F K F C F C J E E E E J G F E C FF FF F F G G J D EFI E F L GE DJJJ DI JI I F FA G EE G F FA C G J EFI JD E K JSES F G F J C E E D E G C E C F C F G F E S S E E C I F IC A IG F DJ E LLM F FCF EEF FA I D L G F AFA GF F G F F CF F F FS IIG LFG DE JJGEI MEEDD IG G D E EI ES EE L G G F FC F K K FAC F EE E EG CJGJJ II IEJFA E JL I G F F FCE J GFG CF F FEE EI LF D D G F G DJ IG D KC F C G G FA CDF FK E ES I L DS G F GFI F E GCI I DD F F F T32 K CF F G FC G F GS D FES SSEEI IJ IJGEA T32 F S GE FF CF FFAF F FFF FFC FF G EF E G ED EFF ED JI ECM E EJE C A EE C J IF EEG F KK F C FGK K F F GG E EJ E JE F F FA I I FJC C E D GESS LL GIIG F K G E GSFD DFEC F IF F J L C G E S J CG EFE F C F C E EJ S G I F GM K F E J F F I G FA F EE I G F E F F M F F C F F K F F M JJ D G G E ESJ EG L GIJEMG E EE F E EDI I JIE D EI F F F G K F EEJ E FG IG J G AE F F FG G F FFK F FK JME J G F F FJ GS EMJ E FF L GF JG G FA C GE K F GFFF F F GG L S ESGI E F FC EIL IM M G L G L K E E G A E F K E E E E J J D FA J C CE E FA EJ FF EJ M ES FF F I GM G CC L F FF G FC FF G AEE F F E F FCE F F G FC F F E J D G J J J G I E G F J A E KC F F FC EFE J EJ F EEE F FG ME GE JF FF C G FC C F FF K E E JJ LL F F GJFM FMSG C LF F F F F FF F F FFCFCFCG EE E EE E EI JJ FA F F FC FC G FE F GGG EDE G DJG K F FL F E F L L FF F G EA EC E EE E G GGF FD FG K F FG GG F FCG JJ F C GF F F C C CFC FA EG CJ G F F F F G CIEJ E C J JM GJG CL F K CE E F F CE E JJJEFJ F G G CA FA J G G FC FE ES C E FG F F F G GG A G FC F F GM E EE A EE FFF ME M AG F C G G E E J J G F A G J F F K F A L F C FL F G F G J C E F K G E A F GG F F GI J EFE E S FF F E EE E G G G F F G F K F K C F F F F F F G F G E F I F E E G F J G G FC F JIJE F G FC G F LG C J G C E EEF FF F FG G G G EG GMJ F F FF F F F F F GF A CFE A T31 E E E G GF F KC F FF T31 EG F F FF F FF FGFC F F F F F GJJ E JG F EEF C G F C F C L J G FAG E A EG F F C K GE EG FF G I C JJ FAF KCG F CE EE F GD FC G FCG I F E F F C G F L F FF F C F E SE F G F F C GFC G F A CG C LFF K G F GC F F FC FG E FF F EI F F GF G M G DI G KC F C G FF F C E F GF G G FG FC A G E GG C F F G G F F F J EG F FF FE FG FCFC E EE C L F F FG F GF GG CF K G FG GG C G K F G F G C G E C K F I G G G FFC CFC F FE F C SJ L F I G KK L K F F E G F FG G C A F FCEEE EK G C F GFF I FF G JG F E E G L FF I G F J G G C E JL S G G G G G J ME G D G G C G E SG G G F G FIC FG G E G F F L FL G FE FG F FCGL F FC FG JD CF E FEE FC G F F F FEJFJEF F G F L G F FK G FI GEEE G C LF EE EJG J G F KF KL G L F G K G LFL G G GC L C K JS L F E L F J E G C G CE E E C MM CMS G CG F G J F G L F G GG FF G J FJ G FA F G J EF G G L G EE EEE G G JCJE JGM JG G C LC CG F L L FF FL G G D T30 JE F T30 E EEEE E EJ J J F F G C G F F F E K L L G C LF K G LE K E EE G CD FF G G E G EJ J J G F C G GG F F FE J E I C E E E E FG K E C G F E E G G GE G F C FC L E G G F KF K F FS L F F G K ESF G F G C E EEEG F J I G F G G E J D F G L E G J E F G F G F C F G C E E I J F A EI DJ G EJ C LE G F EE G C G L G F G JL C F G F G DJ IJJ J G E JJL F G GG C G GGEEGE G L F F F JE C EE II G F F C C J E CE E F F D EE G G F G JJ D G C G G F E F F G G F C F F F G G E EE E IG G F FFC F EE L F FC F GG FC G E EJJG EE G EJ E G C F G F G C G G K G G E EEJJG F G F L CF G G E EJ I G G F L GL LC G E J J J G C FF E EE G G K G F F K GG F E G F F F I G K MS F F G K G L F G F E J L F JJ F A T29 T29 GG EJ E F G D L L G FE G F K FG L F F JF F E IGJ E EE GGG F G F F F FGJE E J JJJ F F F F F GK F E JE I J JJ G F C FC FAFC F CF A E F C G K F F GG E E E F F L F F GG D FG C GGG G JJJ C F FGFCFFF L F G G J EEEJE EE E J F G JG LG G GA L K G G G G D F F F LFF K K EEE GF G G G CJ JLJ L EE EJ G GF F FC FF A E E F EE G J J JM FL GG FFAFA G F DF G K L JG A F F G I G E GE MMJ E EDFAFAG GGF G G FK F F J FA G I FCGE I F G C F G J F M C F G C E G A LJ JJ I L F FF F FF G C FFAG E G A G CJA LFA G CG L K F KG EFG F EE G F F C G EE L F K F EF E F EFA G KCG D G GF FC G C E EE G FD IC EJ JL D F A FCF F F A G C K F A D IF L F J T28 F F T28 F L KEJ G EE C C E G FF F F D L FG F K G F F F F J F G F C L E G C FG J FE MJ KCGFEC C FF E I I EE G G FF D JM C DD L CF F F J EJ G I E EJ E FC FF D G G G GF F F F F G G M K K F G F G G F F J K E FF G FDFC EJ E E A F G FF E E K G G G FC G F A FC FC F F F FF FA FC E J E FEFE G J F F F F FF FA G FCFFC F E LGFG FAJF F G A G GG G E G F C FCG G A K F F F JE G GF FFALFA FG GL T27 L JFSM G G C FC F GG T27 C F C E E G FA AFF E FG G F F G F G C F FAG F L FF G G E E C G F F E

Competitor Activity

Viking

Cardium

R6 File: None

R5 Datum: NAD27

R4

R3 Projection: Stereographic

R2

R1W5

Center: N51.74120 W114.28554

R29

R28

R27W4

Created in AccuMap™, a product of IHS

• Large land base of 44 gross sections • Two stacked regionally extensive  Oil resource plays • Over 182 MMbbls oil in place (net) ‐ Cardium  ~ 24 net sections ‐ Viking      ~ 24 net sections

• Potential for multiple wells per  section, per zone (2‐4) that will  utilize multistage frac technology • Ability to lever common drill pads  and infrastructure for cost savings  and lower OPEX


Olds/Garrington Cardium/Viking Schematics W

E

W

Cardium Play

E

Viking Play Upper  Shoreface & Storm Deposits

Shoreward

Basinward

Transgressive

me r Conglo

Middle Shoreface

Bar/Sheet

ate

eface r Shor Lowe

~ 25 m

Cardium ‐A

Lower – Mid Shoreface Bar te me r a Conglo

Shale

Cardium ‐B

Cardium

Viking

# Net Sections:

24

24

Total Potential Locations:

94

71

2010 Drills:

4

4

100 Boed

No wells on production

Avg. 1 Month Rate: Avg. 3 Month Rate: Avg. 12 Month Rate:


Olds Cardium Type Curve  Cardium Type Curve Working Interest

55%

OOIP (MMbbl/Sec) Fluid Properties 

39⁰ API

Recovery Factor

10%

Gross Reserves  Per Well (Mboe)

120

DCET CapEX  Per Well ($MM)

$3.50

Cost of Production ($/boe/d)

$40,000

F & D ($/boe)

$29.00 Oct. GLJ  Prices

$70 WTI/ $4 AECO

Recycle Ratio

2.4

2.0

ROR

26.3%

16.6%

NPV BT 15 ($MM)

0.83

0.24

Type Curve

Cardium • Optimizing number of muti‐stage fracs. ‐ moved from 8 to 15 • Optimizing fluid used for fracs • 4 wells drilled with 3 on production

4


Olds Viking Type Curve  Working Interest

Viking Type Curve

OOIP (MMbbl/Sec)

300

Production (boe/d)

74% 3.6

250

Fluid Properties 

37° API

200

Recovery Factor

15%

150

Gross Reserves  Per Well (Mboe)

230

100

DCET CapEX  Per Well ($MM)

$4.20

50

Cost of Production ($/boe/d)

0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85

F & D ($/boe)

Time (months)

• 1st well being completed with an 8 stage liquid propane frac • 2 wells currently drilling with 3 rd planned before year end

$18.26 Oct. GLJ  Prices

$70 WTI/ $4 AECO

Recycle Ratio

3.8

3.2

ROR

40.0%

28.0%

NPV BT 15 ($MM)

2.73

1.69

Type Curve

Viking

$30,665


Olds Elkton High deliverable, liquids rich gas R5

R4

R3

R2

R1W5

04-22-033-03W5 Elkton

R28W4

04-22

Total Production (boe/d) 800

Production Boed

R6

JAG C G GF F J G KC K GF FC G J DC K J KF GG EEEG F L F GKI ECCG FF F FG GJG EF C AF JID J FL G G CGL G KC K L LEEJG EG A F F CGFAFA G LEE J E F K IF JGE EE GG GF J F G E F GKA C JEIC G G F F CF AA CG FG FGF F G FGI J F F F GG C F C G FFC K EEEEE E JGJF G E EFE JE C IL E F GI I I F F JG G EE C FE A JC JCF F L G FA AF C JLJE E GF DFEE CKA A JF CFA A FJ E JL G F K A G G F G F CJ AEG E EE E FK JJ FC G JFEEF GC C E I FEFIEJFJI F L CF F A F G F J C JI FD F L G KE C E E F J G C G L G I E F D F J F A F FI K CFFGF JL FE G JF G FCE G J DGCFA K EEK F D F CF FCG GGFAFAG CG G FI J J J G CF F J I IEF G G F J F F E C F A E EF E J T36 G F F J G C G T36 G J E G G C F F F L K E K J G G F EI I J J FA FK G G F IF EG E GFAFA FF JELJFI FIC G GA FA KC E E E F F JC EJ C F IG G LC GG F EF FAA F G EFCFAF F F G F JG G G G AAK F FAFG IE JE G I DEG FLG G G FF G FA EF FIA J G FF LC E FI AG E FC F FCFC FFAF L FA F LFCAFFAFA LFFEFAFF GG J IA AK FA F G EJF IC E F J G F I K J A F C G F G E A J K A L L J F L A G E F K F J G J G G C L G C E G A E G F F E C F G CFC K AC FF CFF G FG I FA FA K JGF E K G G EC C LAFF F C C F J IEIE G FF AFFAF G FCJG IEE C G A G FAC JF G L A G F C G C E F G A A F A CF FA GFA J G CF F JE E FA FAG G FCG FEJG G GC F F JG G IA FF G C L F J G G G F C IG G F C F C F G C F G F G L F A G G F E F F F F G I E J E F G J I E F GG G FF A F I FAFFA CEG E J F G G I CGG F G JE GE GG JLGJ GGCG G AG F G CG JG G EG FKAF G FC FCF F FGFC F A FGGIE FF I G I K C I FE G J G G F I L G G G E C F E I G J K G C K J F C G G C I F E L G G J G GF F SF S I F L G F G EEE IJE E JIE GF J FI L C FAJ G F GF GFGG JG D A EM F JECMCEC F G G F G F C JF I F JG LKF KFA FG G F G GJF EJE G FI C I EE E FA F LFC JG A JIE E GJ AE G C G FG FAF F G LJIEJG F G F JG G G EE J E E C LE CEEFCAEEEE IJ CGE KC FE T35 T35 EI JI EJ E C L G GFI G IA KF F JI JC G JJIF JE F EFI D E EI CFA F G FAFC M F G FC JIE J G E J I A F FFAFAFA G G E GJ G M F JK C GE L FLE F G G F JLF F G C G K E E L J G G G G JJ F JJJK G C C J I F J G F E F E E I I F F G I J G G F I K E A G F C G C E G JE F G C CG F F E J MEJE FI G J JJIC A IEG C GJIJE J E J C J E J E I J J E F EJ E L E E L E A J J J JJ E F E F F G F G A F L J F C E F L G F G C FI J F EJE E J JI JJIJJF G ICGG EEE EG A F G AA E E M JGF G F E J F G J JC JEJECMEJE E L JFF F A F JL J IE E I E I A J E A FEL I E J JC F G K E F C C I EECJI CEEE J EEJE EG KEEJG JC E JEGEA FAF G FF K E G JJ C E E EJ I E J IC E CC JGG LJC FF F LE FJ J K F C G CEKEEED G JF F MEEM J JFF J J E JJJG FFC FI JE GLF FCJ K I K GF F JF FF JE F F G J E F FEG G EK C IC JL EG I G I IJJC CC EF EJDG CEK M MG LA G J JI JIE JJ IJ G FD JL CF F F G G EI G G JJJJF G F E D LE G G F F FF FCC FM G EJJG CK JL J J G F G IF G EF G C J JI C F FF G F C F JJJEE LEGFG FL FI EJ EE G K JE EJC J J G F G E JE J M M E J CC M E L AIEE I EECJ EI C J EF G F F K L FL GFL FFL J FC J G G GF F F F KF FCI E JE E EK EE EE F C G D C F GG CF F JG G F K JJJJJJJC G GG L K G D F G K GE FGJ K J E FG FC EG GG JG F SF E K EA EJ EE G FI F FF GGGKEF F G F G AECDCEC EG F GG G GI K FAF KA EFI AE I GJC G E EL IC EE KA F FK F G EAIE E EJ EJ G G G F F K GG F CE E G AJEIE E E KAK G EG K A E JEG E E C G G EF K C A F L T34 T34 CFA G J E E E E F J F C F G K F C G E C C KE E J AE G CG AJ S FG F EE E EE G I JG EJEEEJ A L G G C GGE C FFCFAF J E K A CC G CG G GJEEJJ GE GG F I FA EGG J MF C I E F F J IJE I E FC JEC E E JEIE IEEE GC G C EE A EFC E EEEC G C J G F J S G E F J G I S K K D E G C I E G E F C J E E G EIEE AK S I C EJ JEIE E GG ME EFE F JG E F AE IE K C F J EFE EEJD G E J K K G E E E E FI SF E E E K A E G D J G E G F F I F E A E L J E C L G E E F A J E E E G E E I E IF F IE EE C C JE E E SJ EE LE E E CFFA C G G GJSSJES G E E EE JJEEJEJEG FEEEEEGG CG DE FA C C GFA C G F G FA C S JEEFE K KA C E EG A E F EEES C C G E E GG KS G C G EF E K K JAS GG DE A E F GESSD J F FA E EJE JJE JE F F C EJE JG F G G J I IC C G D C G AEEE JE C D M IG G EEEE E IAE EFIE E G GFIED GEE F G I E J SK G G F KC CG C CF JA ECG FEE J I EEEEG K G E F G F FA E JE JEG K G J S AE E C FC FC FA G EFI S EEE C CGC G EE G F EIEFCFG GJEJ FIE J G CG G EEEE G E C C E G C I E C F G G F A F F A E E E E FGG F G F J FA F J G G EE G G C JGE C FA E ESS A IEEJGC K E F JCF CFC E G G F F G G C J I J F A G G G F J G F E F C E G C E G G F F F GJ J E C K JE EIEJ EE E FFA G C FFA FCK FF A EFE E CEC G E FD CC F J EG F EF F C C F C F G G G G G J G G JA F F F G F K G A I F L CF F EGFI E C FFC G CF F EG E G J G GJJ E F K G E G J G L E F F E KE G F FA G F F G G G E L C E M EK J MEJE E FG F K C G L CGFC K K D J FI EF FF T33 F FA F F DG G G D E EJE F JF T33 G GG CD FF MEE E JL F F FA FD EEGIEF G G EFD GG F FC FF G FF G F GGC F J G C FA FCF FAK G G G L G C F F J E J E K J E F J K F J G E E F G F E EM FIC G G A G F L E F F G GG G G AG F FCGFAF G FF F G G CGF GG GGF I I IEFDJEE G L G G F JA J G F G F CEF E FA FA K F F FG F F FE GF GC E FA F EJG FF FF G EJE EFFA G F F I JCD CF F C FA L JG C F GC CCG FE F CC F F E GK FAFA A EE EEJEF F G C E G G G G J E G F G E K C FFA F F G E E FA CF I CF F F JEM G JIG G E G F G G K FCF C F G A G J D J G G E L G F A F FF LE I E F C C E G C D G E JI EES E EG G CG F E G EFEFF F E E C K G GF C F C FL IJEEEGF EJJEEE E F FCA GG K FC F FC G G G G G C G K GFC G G GJG EGFI EGIE E F FC F EJDGE K J EM E G FG EE J E C F G F F F F FFC F FGF FJ D G F C G GG JS J EFI JD E D EF L E DJJJDIG EE K EEE JC C GFC E FA C EIEI G GIC JEI MEJIEDIIJI A F E LLME SFI S ES I F F FCF C F F IEG EEF L D G AFA GG G S F F D FG J F D G C G F GG F EE E EG EF E EDIFI I F ESG EE L GG KFAC F CJGJJDIDEJ E JL I G FF G F C F G F E G E F D E F J D L F G GF C FA KCG C G F F SF I D DS G E DD JG ES I L S EI GFI FCF F F GCI IDIJDIJJ G F T32 F GS F E D F F F S E F S T32 C GC E D G I E E E E E E E M E EA EFDA F JI ECEJG ESSJE F FAF F F FFC F C EE EE A JF IG G FGK K F E FEG G J C G I G J E D G L F K G E L F C F EEFE F F C G S J C D S E CG D S E M E D II FE C FM I F I GK F EG FF FC F FF K FG MEJJJ D GLG E L IGII EG G E EE F GESEJG E EDI I JIE D EG S F G F FG F FK C F F FGG F FFK IGJJMG AEG E JJ G F F FJ G JMEEJ E L GF JG FF G FA C GE L S ES GI E I EM M K G GF EC G DEJ EIL A E EE F FC K L G EG E FA J E C E FAJ MEESE F F F G FC FF G F F E E AE E E F FF F F E F J GG J JDM E IE GI GM JJEJJF F KF F G FC JGG AE F C K F C L E G J E F G M J E G E C F G C FC C FF K F F C F G F F GFMF FEEJJ E E F G JMS C LF F F FFFF F F FCFC EE EE GG E L I E J FA FF F E C G F G FEFM F GG K GF EJDL L FF F E F D FC L EC FCC JG JG G EA E EE E G FDF FF FF F G G G E G G F F FCG JF G C L G C F J F E G C J CC JG CI EJJF J J G F K FJ G C CE E F CE E F CF GA FA E G C E E FG F F F G GG A GFE JL F C G F FC EE A MF K AG C FFF MEJ E G G F F F E EJE JS C FA F G A G EE F FC K G G EME A E SJ F E EE E G E GI F F JJE F G F K G G F FFGIG F F FGJ G F F E F E E F G G G G J F C F C F LG J FC E EEF FF F FG IJE GMJM F F G G E G F F F F F A A F T31 F G E EE G GF F EG F F F FF CE E JG L F F T31 E C GF GJG JE FC F F FAG K G C AEFE G F E F CF I C EG FF G JJ FA K I G F CE EEF GD E F F C G F F C F ESE C C G FF K G FF F G C G G FK G E L G DI F G F F G G F FF F E F G M C FC F C C F G I EA C F GF G F K CG F E G G FC G J EE EE FF G F F FF F FF F GF CF K GG FF G K FE G GG C G F K F G G C G E C J K F F I G F L G G G FFCCFCF S F I E G K FF EC I F FG G CG GFF KL K FF FF G JG F FFF I EJ G G C G E D G G GF G GGJ G F L FF L L G C G E S G G F G G F I C G L G G MFE G G G F E F F D G F C F F J E FEE FC F G F GEJFEF F G GF GEEE G F L J F FK F KF KL CG FF LFFF EE EJGJJ C I K G LFL G G GC L LC K C E F JS CMS G G G CE E E G C G MM J FFF FG G G FA F G GG JFEFE F G G G EE EEE G JCJEJGM CC G G G JGC L L FF F F G C L L F T30 F F J T30 F EE E EEEE G EJ J J F F G C E K L CL G C F LE K G E EE G G CD F GF G EJ J J E G F C G GGG F F F JE F C FG E E EI C KE F G G G EE G LE E EE G G G C F G C F K F F S G K L E E E C E E F J EI EJ EJ F G GG G D S F G C F F G F F G CC CF E E J F I A EI DJ G EJ C F EE G F EE G I G F FLF G CFG G JL C F G F G DJ IJJ J G E JJL F G C K GG G G GGEE L C I EE E J F F C EE JEC F F E CC G G JJ D G CE G GG E F G FG C FFC F D E G F F E EE E IG G C C F E G J L E G E FC C G EE EJJ E G C C G G C K G G E EJJG F G E G E EJ I G G F L GL G CC G EE JJJ G FC G G K F EE E E G F K I M F F F G G S K G L F G F J L C F F G C A G T29 EJ E E L F T29 EF G JJD L F F F GFF G F F GJ IGJ E EE GGF J FF F G G G J JJJ G FE E F F GK E JE I J JJ G F C F CF A E F F F C G K F F E E E GGG G JJJ L F F LC J E EE EE E J EJ G F G GA L K G G G G F GFLF K K EE G FL FGC G G CJ EJJLJ L EE EJ G F E E E J J A J GG E G DF G F K L J DFFAFAGG A M F F E G I FG E G MM G E FAFA D E FK F F J G G J G I FCGE I G CCF G K F KG EEG G LJMJJJI F F A A G CF E G G A L E E J C C F F FF C G EEL L F K EF E EFA GF FC G G G C E EE EJ JL IC F F F A A C D F IFA L J T28 L KEJ G F EE F C F T28 E F G D F F K G F F JJF G F FC G L FF L FG C G C FC J FE M G C E I I EE G D JM F F J D F G EJ I E EJ E CF F F FF G M KCG KD F E GDEEG G G G FC J EJ E F GK FGF G FD G G FC G A FE FC FC FF FFLG G E F F J E J E F C F F F A F F G G G E G G F FFC G G E M C FCG F A K F G F F JE G L F C FC S G G JG F GG T27 T27 F C E E E G F F G F F FG C G E E C G

Test IP: 385 boed

NGL Production (boe/d)

600

400

200

Mar 2010

0 Apr - 10

12-02

May - 10

Jun - 10

IP: 1000 boed May 2010

R6 File: None

R5 Datum: NAD27

R4 Projection: Stereographic

R3

R2 Center: N51.72937 W114.33672

R1W5

R29

R28W4

Created in AccuMap™, a product of IHS

800

Production Boed

Elkton Subcrop

Sep - 10

Oct - 10

12-02-033-03W5 Elkton

16-35

RR 201010-20

Aug - 10

16-35 Inline flow test ~785 Boe/d

Total Production (boe/d) NGL Production (boe/d)

600

400

200

0 May - 10

Jun - 10

July - 10

Sep - 10

Oct - 10


Olds Area • Stacked reservoirs

• Multiple well potential • Savings with common drill pads and infrastructure • Over 182 MMbbls OOIP • Potential for ~165 net wells


Creation

Olds Viking / Cardium

Lindbergh

Value

Groundbirch

Swan Hills

Pengrowth’s Pillars

Inventory Breadth, Depth, Size & Timing Financial Strength, Flexibility

Pillar Four  Lindbergh


Lindbergh Lease •Potential for 30,000 boe/d  •Estimated OOIP 1.3 Bbbl •Commercial project would represent 100%  of PGF reserve replacement •Over a 25 year RLI •Potential doubles if thinner pay zones prove  economic


SAGD Lindbergh • Revised pilot to 1,200 boe/d • Assumes two (2) well pairs • First steam targeted for Q1, 2012 • Phase 2: Develop to 12,000 boe/d • Phase 3: Expand to 30,000 boe/d • $50 million capital allocated in  2011 for pilot development


Lindbergh Reservoir Characteristics  1AA/16-14-058-05W4/00 659.9 2007/07/23

OOIP 100 (MMbbl/sec)

18m

Fluid Properties 10‐11o API

Reserves per Well Pair 1,000 Mboe Resource Estimation (MM bbl)

• Anticipated SOR of 3.0 

No cut‐off

1,491

10 m cut‐off

1,349

15 m cut‐off

608

20 m cut‐off

75


Key Attributes • Porosity and permeability competitive with other  SAGD developments • Lower viscosity & higher gravity implies good  mobility of oil, enhanced recovery and lower  diluent costs • Deeper zone improves thermal efficiency in the  reservoir and containment • All season access and location South of “Fort Mac  Hot Bed” anticipated to reduce construction costs


Pilot Status • Detailed engineering underway • Completion and warm up design ongoing • SIR stage with ERCB and AENV • Stakeholder Consultation to be updated in Q4,  2010 and ongoing in 2011 • Regulatory approval anticipated in Q3, 2011 • First steam anticipated Q1, 2012


30,000 BOE/D Target by 2018 • Phase 1: 1,200 boe/d pilot • Phase 2: Expand to 12,000 boe/d by 2014 • Phase 3: Expand to 30,000 boe/d by 2018 • Subject to regulatory approvals • Approximately $1 Billion to invest over 7 years • The 10 to 15m pay zones could double this  potential to 60,000 boe/d once proven economic


Capital Expenditures • $50 million: SAGD Pilot • $350 million: Phase 1, 12,000 boe/d • $500 million: Phase 3, expand to 30,000 boe/d • $25 million in seismic and core hole drilling


What’s Different? • Seasoned SAGD project execution team in place • Meetings with ERCB in October and November,  2010: No major issues identified • Submission of SIRS anticipated Q1, 2011 • Approval anticipated Q3, 2011 • Shop fabrication on boilers anticipated December  2010 • Preliminary field work on Source Water line  anticipated December 2010 • Observation well and core hole drilling planned for  December 2010 


Where to from here • Made significant progress identifying  unconventional opportunities on  asset base • Move to develop identified  opportunities • Continue to test proof‐of‐concept  plays • Evaluate acquisition opportunities • Continue as dividend paying  corporation


Pengrowth Energy Trust Stock Exchange Toronto: New York:

PGF.UN PGH

Investor Relations Toll‐free:  Email:  Website:  

1.888.744.1111 investorrelations@pengrowth.com www.pengrowth.com

Pengrowth Energy Trust 2100, 222 – 3rd Avenue SW Calgary, Alberta, Canada T2P 0B4 Telephone:  403.233.0224 Toll Free:  1.800.223.4122 Facsimile:  403.265.6251

Pengrowth December 2010  

Corporate Presentation

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