Mr. Derek Evans reports

PENGROWTH ANNOUNCES SALE OF BERNADET MONTNEY LANDS FOR $92 MILLION

Pengrowth Energy Corp. has entered into an agreement for the sale of its non-producing Montney lands at Bernadet in northeast British Columbia for cash consideration of $92-million.

The Bernadet asset encompasses 36.6 sections (100-per-cent working interest) of land with no associated production or cash flow and neither reserves nor resources assigned to it in Pengrowth's Dec. 31, 2016, year-end reserve report.

The sale further enhances the company's strategy to delever its balance sheet and provide additional financial flexibility to pursue development of Pengrowth's remaining core growth assets.

Derek Evans, president and chief executive officer of Pengrowth, commented: "We believe this transaction provides a compelling opportunity to realize value on an asset that has no associated production or cash flow and will allow us to further deleverage our balance sheet. We continue to be active in the Montney through our Groundbirch assets, which are currently producing and which have demonstrated excellent potential to provide long-term growth in production and reserves for Pengrowth."

The effective and closing date of the transaction is expected to occur on or about March 31, 2017, subject to customary closing conditions.

We seek Safe Harbor.