2010-07-26-2010-07-12-2010-09-16

Acquired company with 90% WI in 21 sections prospective for Montney shale in Groundbirch area of NE BC, gaining 11.2 MMBOE proved.

Pengrowth Corp., administrator of Pengrowth Energy Trust, Calgary, (NYSE: PGH) has completed its acquisition of Monterey Exploration Ltd., Calgary, (Toronto: MXL) for approximately C$362.8 million in equity.

Monterey shareholder had a choice between receiving either 0.8298 Pengrowth trust unit or 0.8298 Pengrowth share per Monterey share. Pengrowth issued approximately 28 million units and 5 million shares to Monterey shareholders. Units are currently trading at C$10.99 each and shares at US$10.69 each.

Pengrowth has been a Monterey shareholder since 2006, and prior to closing held almost 9 million Monterey shares, representing 18% of the outstanding common shares.

Monterey's assets include properties in the Montney unconventional gas play in the Western Canadian Sedimentary Basin. The assets featured 90% operating working interest in 21 sections of acreage in the Montney; and 11.2 million barrels equivalent of proved reserves and 23.8 million barrels equivalent of proved plus probable reserves.

The Groundbirch assets represented 71% of the Montney reserves.

Pengrowth president and chief executive Derek Evans says, "The acquisition of Monterey represents a significant step forward in our value creation strategy announced last year. Monterey's concentrated, Montney resource focused asset base in the Groundbirch area of northeast British Columbia will provide Pengrowth with a new core area with a deep inventory of operated, low risk drilling opportunities that provide excellent full cycle economics."