HEAVY OIL BUSINESS

Pengrowth Corporation announced financial results for the quarter ended September 30, 2010. Highlights include; average production of 72,704 barrels of oil equivalent (boe) per day in the third quarter, a reduction of 4% from the second quarter production of 75,517 boe per day. Year-to-date production has averaged 74,605 boe per day. At the end of the quarter, Pengrowth had Can$26 million of short term debt and over Can$1 billion available on its committed bank facility.

Pengrowth Energy Trust reported six months ended June 30, 2010 results for their Heavy Oil Business located in Alberta, Canada. At East Bodo, the tie-ins from the first quarter 2010 well infill program were completed early in the second quarter. The program included seven producing wells and three injector wells that were drilled to test the impact of a reduced spacing, 20 acre, line drive pattern. Pengrowth has initiated water injection into the pattern and anticipate converting to a polymer flood by the end of 2010. Incremental production is expected in early 2011.

Pengrowth Energy Trust reported that at East Bodo, a ten-well Lloyd program consisting of seven production wells and three injection wells was successfully completed. Two water wells to supply the water for the waterflood were also drilled. Spending in the first quarter was approximately $6.3 million. The intent is to convert the pilot area to associated polymer flood by year-end.