Pengrowth Energy Corp. (NYSE: PGH) said March 20 it reached an agreement to sell noncore assets as part of the Calgary, Alberta-based company’s strategy to streamline its portfolio and lower debt.For CA$180 million cash, an undisclosed Calgary-based private company will acquire a portion of Pengrowth’s Swan Hills assets in north-central Alberta. The assets generated production of about 4,920 barrels of oil equivalent per day (roughly 82% liquids) during fourth-quarter 2016.Pengrowth said it plans to use a portion of the sale proceeds to pre-pay the remaining outstanding US$100 million (CA$134 million) of 2017 senior notes. Pro forma for the pre-payment, the company’s net debt will fall to about CA$970 million with no outstanding debt maturities for the remainder of 2017.Deloitte Corporate Finance was exclusive financial adviser and agent to the undisclosed buyer in structuring and financing the transaction. In addition, Burgess Energy Advisors and Shea Nerland Law were legal advisers to the buyer.
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