Mr. Derek Evans reports

PENGROWTH ANNOUNCES FIRST STEAM AT THE INITIAL 12,500 BARREL PER DAY COMMERCIAL PROJECT AT LINDBERGH

Pengrowth Energy Corp. has commenced steam operations at the Lindbergh thermal project located in the Cold Lake area of eastern Alberta.

"First steam is a significant milestone for the Lindbergh project as it represents the completion of construction and commissioning of the facilities, and is the last major milestone before first oil," said Derek Evans, president and chief executive officer of Pengrowth. "We are pleased that the Lindbergh facilities have been successfully commissioned and that first steam was delivered on time. We look forward to the production and associated funds flow growth from this project in 2015 and beyond."

Pengrowth has been operating a two-well-pair pilot at Lindbergh for the last 34 months, which has produced approximately 1.6 million barrels to date, with a cumulative steam-oil ratio of 2.1 times. November production from the pilot averaged approximately 1,760 barrels per day with an instantaneous steam-oil ratio of 2.3 times.

Lindbergh, Pengrowth's 100-per-cent-owned-and-operated thermal project, is located in the Cold Lake area of eastern Alberta. The project offers Pengrowth the potential to develop annual production of up to 50,000 barrels per day. Lindbergh's robust economics make it a viable project that is able to generate positive cash flow, even in a low-oil-price environment. With strong netbacks, low decline rates, long reserve life and low sustaining capital requirements, Lindbergh is expected to be the foundation of Pengrowth's sustainable model, supporting future growth in production and funds flow.

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