Mr. Derek Evans reports

PENGROWTH REACHES AGREEMENT TO SELL REMAINING SWAN HILLS PROPERTIES FOR $150 MILLION

Pengrowth Energy Corp. has entered into an agreement for the sale of its remaining Swan Hills assets in north-central Alberta for total cash consideration of $150-million, subject to customary adjustments. When combined with the approximate $18-million deposit from the initial sales process which was terminated on July 11, 2017, total consideration for the sold assets will be approximately $168-million before closing adjustments.

The assets to be sold generated average daily production of approximately 5,060 barrels of oil equivalent per day (boe per day) (weighted approximately 82 per cent toward liquids) during the second quarter of 2017 and had 31 million boe of proved plus probable (2P) reserves assigned to them as at Dec. 31, 2016, according to the independent reserve evaluators GLJ Petroleum Consultants Ltd.

The effective date of the sale is Jan. 1, 2017, and closing is expected to occur during the fourth quarter of 2017, subject to the receipt of all necessary regulatory approvals and the satisfaction of other customary closing conditions. On closing, the sale will complete the company's exit from the Swan Hills area and provide it with additional financial liquidity.

The company expects to provide an update to its fourth quarter and full year 2017 guidance following the closing of the sale.

BMO Capital Markets Inc. acted as financial advisers to Pengrowth on the transaction.

About Pengrowth Energy Corp.

Pengrowth Energy is a Canadian intermediate energy company focused on the sustainable development and production of oil and natural gas in Western Canada from its Lindbergh thermal oil property and its Groundbirch Montney gas property.

We seek Safe Harbor.