suppl
 

Filed pursuant to General Instruction II.L of Form F-10
File No. 333-137221
FORM 51-102F3
MATERIAL CHANGE REPORT
      The short form base shelf prospectus of Pengrowth Energy Trust dated September 15, 2006, is amended and supplemented by the contents of this material change report.
1. Name and Address of Company:
  Pengrowth Energy Trust
2900, 240 – 4th Avenue S.W.
Calgary, AB T2P 4H4
2. Date of Material Change:
      September 18, 2006
3. News Release:
  News releases setting out information relating to the material change described herein were disseminated through Canada NewsWire and filed on SEDAR on September 18, 2006.
4. Summary of Material Change:
  Pengrowth Corporation, administrator of Pengrowth Energy Trust, (collectively, “Pengrowth”) announced on September 18, 2006 that it has entered into a definitive agreement to acquire all of ExxonMobil Canada Energy’s average 89 percent operated working interest in properties in the Carson Creek area of Alberta and the adjacent Carson Creek Gas Plant (collectively, “Carson Creek”) for a total purchase price of $475 million prior to adjustments (the “Carson Creek Acquisition”). The Carson Creek Acquisition is expected to close September 28, 2006, with an adjustment date of September 1, 2006, and is subject to customary conditions and regulatory approvals. Pengrowth will fund the Carson Creek Acquisition through a concurrently announced equity financing, and if required, through its existing credit facility.
5. Full Description of Material Change:
  Pengrowth announced on September 18, 2006 that it has entered into a definitive agreement to acquire Carson Creek for a total purchase price of $475 million prior to adjustments. The Carson Creek Acquisition is expected to close on September 28, 2006, with an adjustment date of September 1, 2006, and is subject to customary conditions and regulatory approvals. Pengrowth will fund the Carson Creek Acquisition through a concurrently announced equity financing as well as through its existing credit facility.
 
  Words and abbreviations not otherwise defined herein shall have the meanings ascribed thereto in Schedule “L” to this material change report.
          Transaction Highlights
  The Carson Creek Acquisition provides the following financial and operational benefits to Pengrowth unitholders:
  • ownership in one of the larger conventional original oil-in-place reservoirs in western Canada;
 
  • the addition of approximately 18.9 mmboe of proved plus probable reserves and approximately 5,100 boe per day of production, consisting primarily of high quality, light crude oil;
 
  • producing reserves representing approximately 93% of total proved reserves;
 
  • close proximity to Pengrowth’s existing interests in the Judy Creek units and Swan Hills Unit No. 1, expanding Pengrowth’s key light oil focus area and providing opportunities for development and field operating synergies and improved overall efficiencies for the Judy Creek facilities and Carson Creek facilities;
 
  • incremental recoverable reserves through up-hole zone development, infill drilling, continued optimization of the existing waterflood program and new enhanced oil recovery programs in the future;

 

  • accretion to distributable cash flow per trust unit;
 
  • production and reserve acquisition costs of approximately $93,000 per flowing boe and $25.15 per boe of proved plus probable reserves for long-life reserves (over 10 year reserve life index).
          Carson Creek Acquisition Summary
  Pengrowth Corporation, 1268071 Alberta Ltd. (“Pengrowth Acquisition Company”) and ExxonMobil Canada Energy (“ExxonMobil”) have entered into a share sale agreement dated September 18, 2006 (the “Share Sale Agreement”). Pengrowth Acquisition Company is a wholly-owned subsidiary of Pengrowth Corporation. To facilitate the acquisition, ExxonMobil will acquire common shares and preferred shares of 3174792 Nova Scotia Company (“ExxonMobil Sub”). Pengrowth Acquisition Company will acquire all of the shares of the ExxonMobil Sub through a series of transactions whereby Pengrowth Acquisition Company will subscribe for common shares of ExxonMobil Sub, ExxonMobil Sub will redeem the preferred shares held by ExxonMobil and Pengrowth Acquisition Company will acquire all of the remaining outstanding common shares of ExxonMobil Sub. The total consideration payable by Pengrowth Acquisition Company to ExxonMobil under the Share Sale Agreement is $475 million, prior to adjustments.
 
  When acquired by Pengrowth Acquisition Company, ExxonMobil Sub will own and control an 87.5 percent operated working interest in Carson Creek North Unit No. 1 (the “Carson Creek North Unit”) and a 95.1 percent operated working interest in both Carson Creek Unit No. 1 and the Carson Creek Gas Plant. Carson Creek has production of approximately 5,100 boepd, consisting of 3,450 boepd of light crude oil and natural gas liquids and 10.0 mmcf of natural gas per day. When completed, and prior to the business combination with Esprit, the Carson Creek Acquisition will increase Pengrowth’s overall current production by about 9% to approximately 62,500 boepd. When completed, the Carson Creek Acquisition will also increase Pengrowth’s Total Proved Plus Probable Reserves by approximately 18.9 mmboe consisting primarily of high quality 44 degree API light crude oil (on a company interest before royalties basis using GLJ Petroleum Consultants Ltd. (“GLJ”) constant pricing). Upon completion of the Carson Creek Acquisition and the business combination with Esprit, we expect our overall current production will increase by 40% to approximately 81,000 boepd and our overall Total Proved Plus Probable Reserves will increase to approximately 299 mmboe (on a company interest before royalty basis using constant pricing).
 
  Pengrowth believes Carson Creek is regarded as one of the larger conventional reservoirs in western Canada. Carson Creek is located just 20 kilometers (12.5 miles) south of Pengrowth’s existing interests in the Judy Creek units and Swan Hills Unit No. 1, and will significantly expand Pengrowth’s key light oil focus area. The Carson Creek North Unit offers stable long term light crude oil production with potential reserves upside through prospective up-hole zone development, potential infill drilling and enhanced oil recovery opportunities similar to other Swan Hills pools in this area. Pengrowth is an experienced operator of enhanced oil recovery properties (as a result of a successful miscible flood program at Judy Creek and other innovations) and Carson Creek’s proximity to Judy Creek, Pengrowth’s largest operated property, offers the potential for operating synergies.
 
  Pengrowth will also receive additional beneficial ownership of gross overriding royalties and working interests in non-unitized zones and lands in the area surrounding Carson Creek.
          Reserves
  GLJ has evaluated the assets being acquired in the Carson Creek Acquisition as at July 1, 2006 in compliance with National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities. The following table

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  summarizes GLJ’s assessment of the before royalty Pengrowth Interest reserves being acquired, using constant pricing.
                 
    Total   Total Proved Plus
    Proved Reserves   Probable Reserves
         
Constant Pricing
                
Oil and natural gas liquids (mbbls)
     11,616       14,084  
Natural gas (bcf)
     23       29  
mboe
     15,470       18,936  
Strip Pricing
                
Oil and natural gas liquids (mbbl)
     11,616       14,084  
Natural Gas (bcf)
     23       29  
mboe
     15,470       18,936  
  A summary of the reserves of Pengrowth prior to the Carson Creek Acquisition and the strategic business combination with Esprit, the reserves associated with each transaction and the pro forma reserves assuming the completion of both transactions are provided in Schedule “A” (constant pricing) and Schedule “B” (strip pricing) hereto.
 
  More comprehensive reserves information prepared using constant pricing and relating to: (i) Pengrowth prior to the Carson Creek Acquisition and the strategic business combination with Esprit; (ii) the Carson Creek Acquisition; (iii) the strategic business combination with Esprit; and (iv) Pengrowth on a pro forma basis after giving effect to the Carson Creek Acquisition and the strategic business combination with Esprit, are attached as Schedules “C”, “D”, “E” and “F” hereto, respectively.
 
  More comprehensive reserves information prepared using strip pricing and relating to: (i) Pengrowth prior to the Carson Creek Acquisition and the strategic business combination with Esprit; (ii) the Carson Creek Acquisition; (iii) the strategic business combination with Esprit; and (iv) Pengrowth on a pro forma basis after giving effect to the Carson Creek Acquisition and the strategic business combination with Esprit, are attached as Schedules “G”, “H”, “I” and “J” hereto, respectively.
 
  Pricing assumptions relied upon in preparing the information contained in Schedules “A” through “J” are provided in Schedule “K” hereto.
          Esprit Consent:
  Esprit has provided written consent regarding the strategic business combination with Pengrowth in accordance with the terms of the combination agreement entered into by Esprit and Pengrowth on July 23, 2006.
          Advisory:
  This material change report shall not constitute an offer to sell or the solicitation of an offer to buy Pengrowth trust units, nor shall there be any sale of Pengrowth trust units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
          Caution Regarding Engineering Terms:
  When used in this material change report and in the schedules hereto, the term “boe” means barrels of oil equivalent on the basis of one boe being equal to one barrel of oil or NGLs or 6,000 cubic feet of natural gas (6 mcf: 1 bbl). Barrels of oil equivalent may be misleading, particularly if used in isolation. A conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
 
  The U.S. Securities and Exchange Commission (“SEC”) permits United States oil and natural gas companies, in their filings therewith, to disclose only proved reserves net of royalties and interests of others that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known

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  reservoirs under existing economic and operating conditions. Canadian securities laws permit oil and natural gas companies, in their filings with Canadian securities regulators, to disclose reserves prior to the deduction of royalties and interests of others, and to disclose probable reserves. Probable reserves are of a higher risk and are generally believed to be less likely to be recovered than proved reserves. Certain reserve information used herein to describe our reserves, such as “probable” reserve information, is prohibited in filings with the SEC by U.S. oil and natural gas companies.
          Caution Regarding Forward Looking Information:
  This material change report contains forward-looking statements within the meaning of securities laws, including the “safe harbour” provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “forecast”, “target”, “project”, “may”, “will”, “should”, “could”, “estimate”, “predict” or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, statements with respect to: benefits of the Carson Creek Acquisition and the strategic business combination with Esprit, synergies, business strategy and strengths, acquisition criteria, capital expenditures, reserves, reserve life indices, estimated production, remaining producing reserve lives, and development plans and programs. Statements relating to “reserves” are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described exist in the quantities predicted or estimated and can profitably be produced in the future.
 
  Forward-looking statements and information are based on current beliefs as well as assumptions made by and information currently available to Pengrowth concerning anticipated financial performance, business prospects, strategies and regulatory developments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
 
  By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: the volatility of oil and gas prices; production and development costs and capital expenditures; the imprecision of reserve estimates and estimates of recoverable quantities of oil, natural gas and liquids; Pengrowth’s ability to replace and expand oil and gas reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions; increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; compliance with environmental laws and regulations; changes in tax laws; the failure to qualify as a mutual fund trust; and Pengrowth’s ability to access external sources of debt and equity capital. Further information regarding these factors may be found under the heading “Business Risks” in our management’s discussion and analysis for the year ended December 31, 2005 and under “Risk Factors” in our Annual Information Form dated March 29, 2006.
 
  The foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this press release, and Pengrowth does not undertake any obligation to up-date publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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6. Reliance on Subsection 7.1(2) or (3) of National Instrument 51-102:
  Not Applicable.
7. Omitted Information:
  Not Applicable.
8. Executive Officer:
  Mr. James S. Kinnear, Chairman, President and Chief Executive Officer, is knowledgeable about the material change and may be reached at (403) 233-0224.
9. Date of Report:
  Dated at Calgary, Alberta, this 20th day of September, 2006.

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Certificates of Pengrowth
Dated: September 20, 2006
      The short form prospectus dated September 15, 2006 as amended by this material change report, together with the documents incorporated herein by reference, will, as of the date of the last supplement to this prospectus relating to the securities offered by this prospectus and the supplement(s), constitute full, true and plain disclosure of all material facts relating to the securities offered by this prospectus and the supplement(s) as required by the securities legislation of each of the provinces of Canada. For the purpose of the Province of Québec, the simplified prospectus dated September 15, 2006 as amended by this material change report, together with documents incorporated herein by reference and as supplemented by the permanent information record, will contain no representation that is likely to affect the value or the market price of the securities to be distributed.
Pengrowth Energy Trust
By: Pengrowth Corporation as Administrator
     
(signed) James S. Kinnear
James S. Kinnear
President and Chief Executive Officer		   (signed) Christopher G. Webster
Christopher G. Webster
Chief Financial Officer
 
On behalf of the Board of Directors
 
(signed) Thomas A. Cumming
Thomas A. Cumming
Director		   (signed) Michael S. Parrett
Michael S. Parrett
Director
 
By: Pengrowth Management Limited, as Manager
 
(signed) James S. Kinnear
James S. Kinnear
President		   (signed) Gordon M. Anderson
Gordon M. Anderson
Vice President, Financial Services
in the capacity of Chief Financial Officer
 
On behalf of the Board of Directors
 
(signed) James S. Kinnear
James S. Kinnear
Director

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SCHEDULE “A”
SUMMARY PENGROWTH, BASE AND PRO FORMA THE CARSON CREEK
ACQUISITION AND THE STRATEGIC BUSINESS COMBINATION
WITH ESPRIT ENERGY TRUST
Selected Pro Forma Reserves and Operational Information — Constant Pricing
      The following table sets forth certain reserves and operational information with respect to Pengrowth (updated from the December 31, 2005 information contained in our annual information form dated March 29, 2006 for the year ended December 31, 2005), the properties to be acquired pursuant to the Carson Creek Acquisition, Esprit (including Esprit’s acquisition of Trifecta Resources Inc. on July 5, 2006) and Pengrowth on a pro forma combined basis, as at and for the periods indicated.
                                   
        Carson        
    Pengrowth   Creek   Esprit   Pengrowth
    Updated(1)   Properties(2)   Acquisition(3)   Pro Forma(4)
                 
Proved Reserves
                                
 
Crude oil and NGLs (mbbls)
     101,949       11,616       11,531       125,096  
 
Natural gas (bcf)
     399       23       230       652  
 
Total (mboe)(5)
     168,495       15,470       49,818       233,783  
Total Proved Plus Probable Reserves
                                
 
Crude oil and NGLs (mbbls)
     128,854       14,084       16,102       160,040  
 
Natural gas (bcf)
     494       29       310       833  
 
Total (mboe)(5)
     212,184       18,936       67,744       298,864  
Net Present Value of Future Net Revenue @ 10%
                                
 
Proved Reserves ($millions)
     3,176       334       635       4,145  
 
Total Proved Plus Probable Reserves ($millions)
     3,821       384       815       5,021  
Net Present Value of Future Net Revenue @ 5%
                                
 
Proved Reserves ($millions)
     4,011       424       784       5,220  
 
Total Proved Plus Probable Reserves ($millions)
     4,964       499       1,038       6,502  
Undeveloped Land Holdings
                                
(net acres)
     410,000       23,000 (6)     250,000       683,000  
Oil and Natural Gas Wells (net wells)
                                
 
Producing oil wells
     691       45       163       899  
 
Producing natural gas wells
     1,064       14       500       1,578  
Average Daily Production
                                
(three months ended June 30, 2006)
                                
 
Crude oil and NGLs (bblpd)
     31,163       3,440       4,862       39,465  
 
Natural gas (mmcfpd)
     151       10       74       235  
 
Total (boepd)(3)
     56,325       5,100       17,195       78,632  
 
Notes:
(1) The Pengrowth updated reserve volumes and net present values of future net revenue for Pengrowth are: (i) effective December 31, 2005, with a mechanical update based on estimated production up to July 1, 2006; (ii) inclusive of the acquisition of properties in Alberta from Tundra Oil and Gas Limited for $48 million in March of 2006; (iii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iv) based upon GLJ Petroleum Consultants Ltd.’s constant prices and costs as at June 30, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by GLJ Petroleum Consultants Ltd. dated September 12, 2006. More comprehensive reserves information is provided in Schedule “C” attached hereto.
 
(2) The reserve volumes and net present values of future net revenue for the Carson Creek properties are: (i) effective July 1, 2006; (ii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iii) are based upon GLJ Petroleum Consultants Ltd.’s forecast prices and costs as at June 30, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by GLJ Petroleum Consultants Ltd. dated September 17, 2006. More comprehensive reserves information is provided in Schedule “D” attached hereto.
 
(3) The reserve volumes and net present values of future net revenue for the Esprit acquisition, other than the reserve volumes and net present values of future net revenue associated with Trifecta Resources Inc. are: (i) effective December 31, 2005 with a mechanical update based on estimated production up to July 1, 2006; (ii) presented on a company interest basis (working interests and royalty interests) before the

A-1

 

deduction of royalties; and (iii) are based upon GLJ Petroleum Consultants Ltd.’s constant prices and costs as at June 30, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by GLJ Petroleum Consultants Ltd. dated September 12, 2006. The reserve volumes and net present values of future net revenue for Trifecta Resources Inc. are: (i) based upon a Sproule Associates Limited engineering report entitled “Evaluation of the P&NG Reserves of Trifecta Resources Inc. (as of May 31, 2006)”; (ii) effective May 31, 2006, with a mechanical update based on estimated production up to July 1, 2006; (ii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iii) based upon GLJ Petroleum Consultants Ltd.’s constant prices and costs as at June 30, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by Sproule Associates Limited dated September 8, 2006. More comprehensive reserves information is provided in Schedule “E” attached hereto.
 
(4) The Pengrowth Pro Forma reserve volumes and net present values of future net revenue for Pengrowth are the mechanical total of the above referred to Pengrowth Updated, Carson Creek Properties and Esprit Acquisition reports. More comprehensive reserves information is provided in Schedule “F” attached hereto.
 
(5) The abbreviations “boe”, “mboe” and “mmboe” refers to barrels of oil equivalent, thousands of barrels of oil equivalent and millions of barrels of oil equivalent, respectively, on the basis of one boe being equal to one barrel of oil or natural gas liquids or six mcf of natural gas; barrels of oil equivalent may be misleading, particularly if used in isolation; a conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead; “boepd” refers to barrels of oil equivalent per day.
 
(6) Subject to a farm-out with Apache Canada Limited.

A-2

 

SCHEDULE “B”
SUMMARY PENGROWTH, BASE AND PRO FORMA THE CARSON CREEK
ACQUISITION AND THE STRATEGIC BUSINESS COMBINATION
WITH ESPRIT ENERGY TRUST
Selected Pro Forma Reserves and Operational Information — Strip Pricing
      The following table sets forth certain reserves and operational information with respect to Pengrowth (updated from the December 31, 2005 information contained in our annual information form dated March 29, 2006 for the year ended December 31, 2005), the properties to be acquired pursuant to the Carson Creek acquisition, Esprit (including Esprit’s acquisition of Trifecta Resources Inc. on July 5, 2006) and Pengrowth on a pro forma combined basis, as at and for the periods indicated.
                                   
    Pengrowth   Carson Creek   Esprit   Pengrowth
    Updated(1)   Properties(2)   Acquisition(3)   Pro Forma(4)
                 
Proved Reserves
                                
 
Crude oil and NGLs (mbbls)
     101,589       11,616       11,488       124,693  
 
Natural gas (bcf)
     401       23       231       656  
 
Total (mboe)(5)
     168,437       15,470       50,032       233,939  
Total Proved Plus Probable Reserves
                                
 
Crude oil and NGLs (mbbls)
     129,528       14,084       16,045       159,657  
 
Natural gas (bcf)
     496       29       312       837  
 
Total (mboe)(5)
     212,209       18,936       68,034       299,179  
Net Present Value of Future Net Revenue @ 10%
                                
 
Proved Reserves ($millions)
     3,330       314       846       4,490  
 
Total Proved Plus Probable Reserves ($millions)
     4,009       363       1,076       5,448  
Net Present Value of Future Net Revenue @ 5%
                                
 
Proved Reserves ($millions)
     4,186       394       1,051       5,632  
 
Total Proved Plus Probable Reserves ($millions)
     5,210       468       1,384       7,062  
Undeveloped Land Holdings
                                
(net acres)
     410,000       23,000 (6)     250,000       683,000  
Oil and Natural Gas Wells (net wells)
                                
 
Producing oil wells
     691       45       163       899  
 
Producing natural gas wells
     1,064       14       500       1,578  
Average Daily Production
                                
(three months ended June 30, 2006)
                                
 
Crude oil and NGLs (bblpd)
     31,163       3,440       4,862       39,465  
 
Natural gas (mmcfpd)
     151       10       74       235  
 
Total (boepd)(3)
     56,325       5,100       17,195       78,632  
 
Notes:
(1) The Pengrowth updated reserve volumes and net present values of future net revenue for Pengrowth are: (i) effective December 31, 2005, with a mechanical update based on estimated production up to July 1, 2006; (ii) inclusive of the acquisition of properties in Alberta from Tundra Oil and Gas Limited for $48 million in March of 2006; (iii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iv) based upon forward strip prices and costs as at June 26, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by GLJ Petroleum Consultants Ltd. dated September 12, 2006. More comprehensive reserves information is provided in Schedule “G” attached hereto.
 
(2) The reserve volumes and net present values of future net revenue for the Carson Creek properties are: (i) effective July 1, 2006; (ii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iii) are based upon forward strip prices and costs as at June 26, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by GLJ Petroleum Consultants Ltd. dated September 17, 2006. More comprehensive reserves information is provided in Schedule “H” attached hereto.

B-1

 

(3) The reserve volumes and net present values of future net revenue for the Esprit acquisition, other than the reserve volumes and net present values of future net revenue associated with Trifecta Resources Inc. are: (i) effective December 31, 2005 with a mechanical update based on estimated production up to July 1, 2006; (ii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iii) are based upon forward strip prices and costs as at June 26, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by GLJ Petroleum Consultants Ltd. dated September 12, 2006. The reserve volumes and net present values of future net revenue for Trifecta Resources Inc. are: (i) based upon a Sproule Associates Limited engineering report entitled “Evaluation of the P&NG Reserves of Trifecta Resources Inc. (as of May 31, 2006)”; (ii) effective May 31, 2006, with a mechanical update based on estimated production up to July 1, 2006; (ii) presented on a company interest basis (working interests and royalty interests) before the deduction of royalties; and (iii) based upon forward strip prices and costs as at June 26, 2006 using a 5% and 10% discount rate, all as contained in the report prepared by Sproule Associates Limited dated September 19, 2006. More comprehensive reserves information is provided in Schedule “I” attached hereto.
 
(4) The Pengrowth Pro Forma reserve volumes and net present values of future net revenue for Pengrowth are the mechanical total of the above referred to Pengrowth Updated, Carson Creek Properties and Esprit Acquisition reports. More comprehensive reserves information is provided in Schedule “J” attached hereto.
 
(5) The abbreviations “boe”, “mboe” and “mmboe” refers to barrels of oil equivalent, thousands of barrels of oil equivalent and millions of barrels of oil equivalent, respectively, on the basis of one boe being equal to one barrel of oil or natural gas liquids or six mcf of natural gas; barrels of oil equivalent may be misleading, particularly if used in isolation; a conversion ratio of six mcf of natural gas to one boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead; “boepd” refers to barrels of oil equivalent per day.
 
(6) Subject to a farm-out with Apache Canada Limited.

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SCHEDULE “C”
PENGROWTH UPDATED RESERVES INFORMATION
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
as of July 1, 2006
(using GLJ prices and costs as at June 30, 2006)
CONSTANT PRICES AND COSTS
                                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   HEAVY    
    MEDIUM OIL   OIL   NATURAL GAS
             
    Pengrowth       Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net   Interest   Net
                         
    (mbbls)   (mbbls)   (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                                
 
Proved Developed Producing
     55,861       47,860       10,403       8,864       344.1       272.4  
 
Proved Developed Non-Producing
     356       302       58       54       24.0       18.3  
 
Proved Undeveloped
     18,732       15,155       1,797       1,506       31.2       24.1  
                                     
Total Proved Reserves
     74,950       63,316       12,259       10,424       399.3       314.8  
Probable Reserves
     21,213       17,612       3,020       2,475       94.7       73.1  
                                     
Total Proved Plus Probable Reserves
     96,162       80,928       15,278       12,899       494.0       387.9  
                                     
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     12,837       8,780       136,452       110,907  
 
Proved Developed Non-Producing
     637       457       5,054       3,859  
 
Proved Undeveloped
     1,266       894       26,989       21,573  
                         
Total Proved Reserves
     14,740       10,130       168,495       136,339  
Probable Reserves
     3,674       2,633       43,690       34,898  
                         
Total Proved Plus Probable Reserves
     18,414       12,764       212,184       171,237  
                         
 
Note:
(1) Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET REVENUE
    CONSTANT PRICES AND COSTS
     
    BEFORE INCOME TAXES
    DISCOUNTED AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     4,365.8       3,239.6       2,607.8       2,204.4       1,923.4  
 
Proved Developed Non-Producing
     117.8       88.0       70.8       59.5       51.5  
 
Proved Undeveloped
     1,006.1       683.4       497.4       378.8       297.9  
                               
Total Proved Reserves
     5,489.7       4,011.0       3,176.0       2,642.7       2,272.8  
Probable Reserves
     1,666.9       953.4       645.4       480.7       379.6  
                               
Total Proved Plus Probable Reserves
     7,156.6       4,964.4       3,821.4       3,123.4       2,652.4  
                               

C-1

 

SCHEDULE “D”
CARSON CREEK PROPERTIES RESERVES INFORMATION
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
as of July 1, 2006
(using GLJ prices and costs as at June 30, 2006)
CONSTANT PRICES AND COSTS
                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   NATURAL
    MEDIUM OIL   GAS
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                
 
Proved Developed Producing
     8,105       6,786       22.3       15.6  
 
Proved Developed Non-Producing
     21       11       0.0       0.0  
 
Proved Undeveloped
     825       644       0.8       0.5  
                         
Total Proved Reserves
     8,950       7,440       23.1       16.1  
Probable Reserves
     1,828       1,519       6.0       4.2  
                         
Total Proved Plus Probable Reserves
     10,778       8,960       29.1       20.3  
                         
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     2,562       2,292       14,391       11,671  
 
Proved Developed Non-Producing
     3       3       27       16  
 
Proved Undeveloped
     101       100       1,052       832  
                         
Total Proved Reserves
     2,666       2,395       15,470       12,519  
Probable Reserves
     640       539       3,465       2,754  
                         
Total Proved Plus Probable Reserves
     3,306       2,935       18,936       15,273  
                         
 
Note:
(1) Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET
    REVENUE CONSTANT PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     536.5       388.4       305.9       254.3       219.0  
 
Proved Developed Non-Producing
     1.3       1.4       1.4       1.3       1.3  
 
Proved Undeveloped
     46.6       34.0       26.4       21.3       17.6  
                               
Total Proved Reserves
     584.3       423.8       333.7       276.9       237.9  
Probable Reserves
     129.2       75.5       50.3       36.3       27.5  
                               
Total Proved Plus Probable Reserves
     713.5       499.3       384.0       313.2       265.4  
                               

D-1

 

SCHEDULE “E”
ESPRIT ACQUISITION RESERVES INFORMATION
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
as of July 1, 2006
(using GLJ (Esprit) and SAL (Trifecta) prices and costs as at June 30, 2006)
CONSTANT PRICES AND COSTS
                                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   HEAVY   NATURAL
    MEDIUM OIL   OIL   GAS
             
    Pengrowth       Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net   Interest   Net
                         
    (mbbls)   (mbbls)   (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                                
 
Proved Developed Producing
     4,025       3,477       419       371       190.8       147.7  
 
Proved Developed Non-Producing
     103       96       55       44       11.0       8.8  
 
Proved Undeveloped
     291       266       0       0       27.9       20.5  
                                     
Total Proved Reserves
     4,420       3,839       474       415       229.7       177.0  
Probable Reserves
     2,207       1,823       221       193       80.1       60.8  
                                     
Total Proved Plus Probable Reserves
     6,627       5,662       695       608       309.9       237.9  
                                     
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     4,995       3,445       41,242       31,921  
 
Proved Developed Non-Producing
     239       163       2,239       1,760  
 
Proved Undeveloped
     1,404       950       6,336       4,633  
                         
Total Proved Reserves
     6,637       4,557       49,818       38,315  
Probable Reserves
     2,143       1,475       17,926       13,638  
                         
Total Proved Plus Probable Reserves
     8,780       6,032       67,744       51,951  
                         
 
Note:
10. Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET
    REVENUE CONSTANT PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     877.2       667.0       546.9       468.8       413.5  
 
Proved Developed Non-Producing
     41.7       33.5       27.9       23.8       20.8  
 
Proved Undeveloped
     125.2       84.2       60.4       45.2       34.8  
                               
Total Proved Reserves
     1,044.3       784.7       635.2       537.9       469.2  
Probable Reserves
     405.7       253.4       179.9       137.7       110.6  
                               
Total Proved Plus Probable Reserves
     1,449.9       1,038.1       815.1       675.6       579.9  
                               

E-1

 

SCHEDULE “F”
PENGROWTH PRO FORMA RESERVES INFORMATION(1)
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
as of July 1, 2006
(using GLJ prices and costs as at June 30, 2006)
CONSTANT PRICES AND COSTS
                                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   HEAVY   NATURAL
    MEDIUM OIL   OIL   GAS
             
    Pengrowth       Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net   Interest   Net
                         
    (mbbls)   (mbbls)   (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                                
 
Proved Developed Producing
     67,991       58,123       10,822       9,235       557.2       435.7  
 
Proved Developed Non-Producing
     480       409       113       98       35.0       27.1  
 
Proved Undeveloped
     19,848       16,065       1,797       1,506       59.9       45.1  
                                     
Total Proved Reserves
     88,320       74,595       12,733       10,839       652.1       507.9  
Probable Reserves
     25,248       20,954       3,241       2,668       180.8       138.1  
                                     
Total Proved Plus Probable Reserves
     113,567       95,550       15,973       13,507       833.0       646.1  
                                     
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     20,349       14,517       192,085       154,499  
 
Proved Developed Non-Producing
     879       623       7,320       5,635  
 
Proved Undeveloped
     2,771       1,944       34,377       27,038  
                         
Total Proved Reserves
     24,043       17,082       233,783       187,173  
Probable Reserves
     6,457       4,647       65,081       51,290  
                         
Total Proved Plus Probable Reserves
     30,500       21,731       298,864       238,461  
                         
 
Note:
(1) Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET REVENUE
    CONSTANT PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     5,779.5       4,295.0       3,460.6       2,927.5       2,555.9  
 
Proved Developed Non-Producing
     160.8       122.9       100.1       84.6       73.6  
 
Proved Undeveloped
     1,177.9       801.6       584.2       445.3       350.3  
                               
Total Proved Reserves
     7,118.3       5,219.5       4,144.9       2,457.5       2,979.9  
Probable Reserves
     2,201.8       1,282.3       875.6       654.7       517.7  
                               
Total Proved Plus Probable Reserves
     9,320.0       6,501.8       5,020.5       4,112.2       3,497.7  
                               
 
Note:
(1) Pro forma, assuming completion of the Carson Creek Acquisition and the business combination with Esprit.

F-1

 

SCHEDULE “G”
PENGROWTH UPDATED RESERVES INFORMATION
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS PER GLJ’S EVALUATION
as of July 1, 2006
(using strip prices and costs as at June 26, 2006)
STRIP PRICES AND COSTS
                                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   HEAVY   NATURAL
    MEDIUM OIL   OIL   GAS
             
    Pengrowth       Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net   Interest   Net
                         
    (mbbls)   (mbbls)   (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                                
 
Proved Developed Producing
     55,698       47,737       10,317       8,893       345.9       273.7  
 
Proved Developed Non-Producing
     355       301       57       53       24.1       18.3  
 
Proved Undeveloped
     18,618       15,261       1,797       1,507       31.1       24.0  
                                     
Total Proved Reserves
     74,671       63,298       12,171       10,453       401.1       316.0  
Probable Reserves
     21,235       17,706       3,034       2,508       95.0       73.2  
                                     
Total Proved Plus Probable Reserves
     95,906       81,005       15,205       12,961       496.1       389.2  
                                     
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     12,842       8,797       136,500       111,049  
 
Proved Developed Non-Producing
     639       460       5,074       3,857  
 
Proved Undeveloped
     1,266       895       26,863       21,663  
                         
Total Proved Reserves
     14,747       10,152       168,437       136,569  
Probable Reserves
     3,670       2,633       43,772       35,044  
                         
Total Proved Plus Probable Reserves
     18,417       12,784       212,209       171,614  
                         
 
Note:
(1) Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET REVENUE
    STRIP PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     4,634.7       3,441.7       2,784.4       2,368.1       2,078.7  
 
Proved Developed Non-Producing
     169.4       124.0       99.4       83.7       72.6  
 
Proved Undeveloped
     932.6       620.7       446.0       336.6       262.8  
                               
Total Proved Reserves
     5,736.7       4,186.4       3,329.8       2,788.3       2,414.1  
Probable Reserves
     1,878.7       1,022.7       679.4       503.6       398.2  
                               
Total Proved Plus Probable Reserves
     7,615.5       5,209.7       4,009.1       3,292.0       2,812.3  
                               

G-1

 

SCHEDULE “H”
CARSON CREEK PROPERTIES RESERVES INFORMATION
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS PER GLJ’S EVALUATION
as of July 1, 2006
(using strip prices and costs as at June 26, 2006)
STRIP PRICES AND COSTS
                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   NATURAL
    MEDIUM OIL   GAS
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                
 
Proved Developed Producing
     8,105       6,786       22.3       15.6  
 
Proved Developed Non-Producing
     21       11       0.0       0.0  
 
Proved Undeveloped
     825       644       0.8       0.5  
                         
Total Proved Reserves
     8,950       7,440       23.1       16.1  
Probable Reserves
     1,828       1,519       6.0       4.2  
                         
Total Proved Plus Probable Reserves
     10,778       8,960       29.1       20.3  
                         
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     2,562       2,294       14,391       11,672  
 
Proved Developed Non-Producing
     3       3       27       16  
 
Proved Undeveloped
     101       100       1,052       832  
                         
Total Proved Reserves
     2,666       2,397       15,470       12,521  
Probable Reserves
     640       540       3,465       2,754  
                         
Total Proved Plus Probable Reserves
     3,306       2,937       18,936       15,275  
                         
 
Note:
(2) Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET
    REVENUE STRIP PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     495.6       362.4       288.8       242.8       211.3  
 
Proved Developed Non-Producing
     1.1       1.3       1.3       1.3       1.2  
 
Proved Undeveloped
     42.7       30.6       23.6       18.9       15.7  
                               
Total Proved Reserves
     539.5       394.4       313.7       263.0       228.2  
Probable Reserves
     127.8       73.5       48.8       35.2       26.8  
                               
Total Proved Plus Probable Reserves
     667.3       468.0       362.5       298.3       255.0  
                               

H-1

 

SCHEDULE “I”
ESPRIT ACQUISITION RESERVES INFORMATION
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS PER GLJ’S EVALUATION (ESPRIT) AND SAL’S EVALUATION (TRIFECTA)
as of July 1, 2006
(using strip prices and costs as at June 26, 2006)
STRIP PRICES AND COSTS
                                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   HEAVY   NATURAL
    MEDIUM OIL   OIL   GAS
             
    Pengrowth       Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net   Interest   Net
                         
    (mbbls)   (mbbls)   (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                                
 
Proved Developed Producing
     3,978       3,433       418       372       192.2       149.0  
 
Proved Developed Non-Producing
     103       96       55       44       11.1       8.8  
 
Proved Undeveloped
     291       266                       28.0       20.6  
                                     
Total Proved Reserves
     4,373       3,795       473       416       231.3       178.4  
Probable Reserves
     2,190       1,807       221       194       80.7       61.3  
                                     
Total Proved Plus Probable Reserves
     6,563       5,601       694       610       311.9       239.7  
                                     
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     5,000       3,454       41,436       32,086  
 
Proved Developed Non-Producing
     238       163       2,247       1,768  
 
Proved Undeveloped
     1,404       951       6,349       4,646  
                         
Total Proved Reserves
     6,642       4,568       50,032       38,499  
Probable Reserves
     2,146       1,479       18,003       13,703  
                         
Total Proved Plus Probable Reserves
     8,788       6,047       68,034       52,202  
                         
 
Note:
11. Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET
    REVENUE STRIP PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     1,193.8       889.4       723.0       617.6       544.1  
 
Proved Developed Non-Producing
     60.1       48.6       40.8       35.2       30.9  
 
Proved Undeveloped
     168.1       113.2       82.2       62.9       49.7  
                               
Total Proved Reserves
     1,421.9       1,051.4       846.0       715.5       624.5  
Probable Reserves
     564.4       332.8       230.4       174.5       139.9  
                               
Total Proved Plus Probable Reserves
     1,986.3       1,384.2       1,076.4       890.1       764.4  
                               

I-1

 

SCHEDULE “J”
PENGROWTH PRO FORMA RESERVES INFORMATION(1)
SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS PER GLJ’S EVALUATION
as of July 1, 2006
(using strip prices and costs as at June 26, 2006)
STRIP PRICES AND COSTS
                                                   
    OIL AND GAS RESERVES
     
    LIGHT AND   HEAVY   NATURAL
    MEDIUM OIL   OIL   GAS
             
    Pengrowth       Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net   Interest   Net
                         
    (mbbls)   (mbbls)   (mbbls)   (mbbls)   (bcf)   (bcf)
Proved Reserves
                                                
 
Proved Developed Producing
     67,781       57,956       10,735       9,265       560.4       438.3  
 
Proved Developed Non-Producing
     479       408       112       97       35.2       27.1  
 
Proved Undeveloped
     19,734       16,171       1,797       1,507       59.9       45.1  
                                     
Total Proved Reserves
     87,994       74,533       12,644       10,869       655.5       510.5  
Probable Reserves
     25,253       21,032       3,255       2,702       181.7       138.7  
                                     
Total Proved Plus Probable Reserves
     113,247       95,566       15,899       13,571       837.1       649.2  
                                     
                                   
        TOTAL OIL
    NATURAL GAS   EQUIVALENT
    LIQUIDS   BASIS(1)
         
    Pengrowth       Pengrowth    
RESERVES CATEGORY   Interest   Net   Interest   Net
                 
    (mbbls)   (mbbls)   (mboe)   (mboe)
Proved Reserves
                                
 
Proved Developed Producing
     20,404       14,545       192,327       154,807  
 
Proved Developed Non-Producing
     880       626       7,348       5,641  
 
Proved Undeveloped
     2,771       1,946       34,264       27,141  
                         
Total Proved Reserves
     24,055       17,117       233,939       187,589  
Probable Reserves
     6,456       4,652       65,240       51,501  
                         
Total Proved Plus Probable Reserves
     30,511       21,768       299,179       239,091  
                         
 
Note:
(2) Natural gas has been converted to barrels of oil equivalent on the basis of six mcf of natural gas being equal to one boe.
                                           
    NET PRESENT VALUES OF FUTURE NET REVENUE
    STRIP PRICES AND COSTS
     
    BEFORE INCOME TAXES DISCOUNTED
    AT (%/YEAR)
     
RESERVES CATEGORY   0%   5%   10%   15%   20%
                     
    ($MM)   ($MM)   ($MM)   ($MM)   ($MM)
Proved Reserves
                                        
 
Proved Developed Producing
     6,324.1       4,693.5       3,796.2       3,228.5       2,834.1  
 
Proved Developed Non-Producing
     230.6       173.9       141.5       120.2       104.7  
 
Proved Undeveloped
     1,143.4       764.5       551.8       418.4       328.2  
                               
Total Proved Reserves
     7,698.1       5,632.2       4,489.5       3,766.8       3,266.6  
Probable Reserves
     2,570.9       1,429.0       958.6       713.3       564.9  
                               
Total Proved Plus Probable Reserves
     10,269.1       7,061.9       5,448.0       4,480.4       3,831.7  
                               
 
Note:
(1) Pro forma, assuming completion of the Carson Creek Acquisition and the business combination with Esprit.

J-1

 

SCHEDULE “K”
PRICING ASSUMPTIONS
SUMMARY OF PRICING ASSUMPTIONS RESERVES INFORMATION
as of July 1, 2006
CONSTANT PRICES AND COSTS
                                                                         
        NATURAL        
    OIL   GAS   NGLx(1)    
                 
    WTI   Edmonton   Cromer   Hardisty            
    Cushing   Par Price   Medium   Heavy   AECO Gas       EXCHANGE
YEAR(3)   Oklahoma   40o API   29.3o API   12o API   Price   Propane   Butane   Pentanes Plus   RATE(2)
                                     
    ($US/bbl)   ($Cdn/bbl)   ($Cdn/bbl)   ($Cdn/bbl)   ($Cdn/mmbtu)   ($Cdn/bbl)   ($Cdn/bbl)   ($Cdn/bbl)   ($US/Cdn)
2006(4)
     73.93       85.28       75.43       52.42       5.33       52.02       63.11       89.04       0.8969  
 
Notes:
(1) FOB Edmonton.
 
(2) The exchange rate used to generate the benchmark reference prices in this table.
 
(3) Information provided as at July 1, 2006
 
(4) This forecast represents the constant price forecast used by GLJ.
NYMEX (June 26, 2006) FORWARD STRIP PRICING UNTIL 2011
                                                                         
                HEAVY        
            LIGHT CRUDE OIL   CRUDE OIL   NGLs AT EDMONTON    
                         
                Edmonton            
    Exchange       WTI Cushing   Par Price   Heavy at        
Year   Rate   Inflation   Oklahoma   40 API   Hardisty   Propane   Butane   Pentanes Plus   Sulphur
                                     
    $US/$Cdn   %   $US/bbl   $Cdn/bbl   $Cdn/bbl   $Cdn/bbl   $Cdn/bbl   $Cdn/bbl   $Cdn/lt
2006
     0.8936       0.0       73.20       81.24       42.49       51.99       60.24       82.74       31.00  
2007
     0.9003       2.0       74.41       81.99       43.99       52.49       60.74       83.74       21.00  
2008
     0.9085       2.0       72.34       78.97       43.72       50.47       58.47       80.47       9.50  
2009
     0.9224       2.0       70.32       75.59       43.59       48.34       55.84       77.09       9.50  
2010
     0.9218       2.0       68.74       73.92       44.17       47.42       54.67       75.42       10.50  
2011
     0.9218       2.0       67.46       72.53       46.78       46.53       53.78       74.03       12.00  
Thereafter
     0.9218       2.0       +2%/YEAR       +2%/YEAR       +2%/YEAR       +2%/YEAR       +2%/YEAR       +2%/YEAR       +2%/YEAR  
                                                 
            NATURAL GAS
             
    Exchange           Alberta Spot   Alberta Spot
Year   Rate   Inflation   Henry Hub   Sable Plant-gate   Plant-gate   @AECO-C
                         
    $US/$Cdn   %   $US mmbtu   $Cdn/mmbtu   $Cdn/mmbtu   $Cdn/mmbtu
2006
     0.8936       0.0       7.17       7.07       6.77       6.98  
2007
     0.9003       2.0       9.04       9.08       8.29       8.51  
2008
     0.9085       2.0       8.77       8.70       8.31       8.53  
2009
     0.9224       2.0       8.31       8.08       7.97       8.19  
2010
     0.9218       2.0       7.90       7.64       7.66       7.88  
2011
     0.9218       2.0       7.44       7.15       7.16       7.37  
Thereafter
     0.9218       2.0       +2%/YEAR       +2%/YEAR       +2%/YEAR       +2%/YEAR  

K-1

 

SCHEDULE “L”
DEFINED TERMS AND ABBREVIATIONS
      In this material change report and the schedules hereto, the following terms shall have the following meanings;
“API” means American Petroleum Institute;
“bbl”, “bbls”, mbbls” and “mmbbls” refers to barrel, barrels, thousands of barrels and millions of barrels, respectively;
“bblpd” refers to barrels per day;
“boe”, “mboe” and “mmboe” refers to barrels of oil equivalent, thousands of barrels of oil equivalent and millions of barrels of oil equivalent, respectively;
“boepd” refers to barrels of oil equivalent per day;
“Gross”, with respect to production and reserves, refers to the total production and reserves attributable to a property before the deduction of royalties, and, with respect to land and wells, refers to the total number of acres or wells, as the case may be, in which Pengrowth has a working interest or a royalty interest;
“$MM” refers to millions of dollars;
“mmbtu” refers to a million British thermal units;
“mcf”, “mmcf” and “bcf” refers to thousands of cubic feet, millions of cubic feet and billions of cubic feet, respectively;
“mmcfpd” refers to millions of cubic feet per day;
“Net” refers to Pengrowth’s working interest share of production or reserves, as the case may be, after the deduction of royalties, and, with respect to land and wells, refers to Pengrowth’s working interest share therein;
“NGLs” refers to natural gas liquids;
“Pengrowth Interest” refers to Pengrowth’s working interest and royalty interest share of reserves before the deduction of royalties;
“Probable Reserves” refers to those additional reserves that are less likely to be recovered than Proved Reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved Reserves plus Probable Reserves;
“Proved Reserves” refers to those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves;
“Reserves” refers to estimated remaining quantities of oil and natural gas and related substances anticipated to be recovered from known accumulations, from a given date forward, based on: (i) analysis of drilling, geological, geophysical and engineering data; (ii) the use of established technology; and specified economic conditions which are generally accepted as being reasonable and shall be disclosed. Reserves are classified according to the degree of certainty associated with the estimate;
“royalty interest” refers to an interest in an oil and gas property consisting of a royalty granted in respect of production from the property;
“Total Proved Plus Probable Reserves” means the aggregate of Proved Reserves and Probable Reserves before the deduction of royalties; and
“working interest” refers to the percentage of undivided interest held by Pengrowth in an oil and gas property.

L-1