Pengrowth Puts Lindbergh Expansion On Hold

Pengrowth Energy says it is deferring its planned Lindbergh thermal oilsands project expansion for at least a year due to low oil prices. This comes in the wake of the company slashing its 2015 capital budget to $200 million, a 75% decrease. Construction on phase two of the three-phase project – located southeast of Bonnyville – was due to begin this year, with the goal of boosting production to 30 thousand barrels per day by 2017. Pengrowth President Derek Evans says the company is waiting for lower costs and higher prices before beginning construction. In spite of the setback, Pengrowth says it still plans to boost production to around 74 thousand barrels per day.