Canadian oil and natural gas company Pengrowth Energy has completed the previously announced sale of its remaining Swan Hills assets in North Central Alberta to an undisclosed buyer for $150m.
The agreement related to the sale was signed in September this year.
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The move, which is part of the company’s aim to reduce its outstanding debt, brings its year to date divestment proceeds to around $1bn.
According to the company, the proceeds from the sale will be used to further reduce its debt.
During the second quarter of this year, these assets generated an average daily production of around 5,060 barrels of oil equivalent (boe) per day.
As of December 31 last year, the assets had 31 million boe of proved plus probable (2P) reserves assigned to them.
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By GlobalDataThe company previously reached an agreement with another buyer, however, the deal fell through because of financing issues.
As part of the transaction, an $18m deposit was sought to be released to Pengrowth following the cancellation of the agreement.
The company has also signed an agreement for the disposition of its Quirk Creek assets in Southern Alberta for $6.5m.
Under the sale agreement, the company intends to sell the Quirk Creek sour gas plant and associated gathering systems related to the production of sour gas and liquids.
During the third quarter of this year, the assets had an average daily production of about 1,900 barrels of oil equivalent (boe) per day.
Conditional on the receipt of regulatory approvals and the fulfilment of other conditions, the completion of the transaction is expected during the fourth quarter of this year.
