Pengrowth Energy Corp. (NYSE: PGH) is selling its non-producing Montney lands at Bernadet in Northeast British Columbia for CA$92 million (US$68.8 million )in cash, the Calgary, Alberta-based company said March 23.

Pengrowth Energy Canada Asset map

The company entered an agreement with an undisclosed company for the sale of 100% working interest of the Bernadet asset. The land has no associated production, cash flow and neither reserves or resources assigned to it in Pengrowth's year-end 2016 reserves report.

The sale follows Pengrowth's divestment of noncore assets in the Swan Hills area in north-central Alberta for CA$180 million on March 20.

Pengrowth said the Bernadet asset sale further enhances the company's strategy to de-lever its balance sheet and provide additional financial flexibility to pursue development of its remaining core growth assets.

"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," Derek Evans, Pengrowth's CEO and president, said in a statement.

Evans said Pengrowth continues to be active in the Montney through its 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, subject to customary closing conditions. (CA$1 = US$0.75)