Pengrowth works to extinguish fire following Swan Hills natural gas pipeline explosion in Alberta

Source: Pengrowth Energy Corp.

On January 1, 2011, Pengrowth Energy Corporation (TSX:PGF.UN) (NYSE:PGH) staff and local authorities responded to a pipeline incident at the Swan Hills gas gathering pipeline system in North Central Alberta

Early Saturday morning, the rupture of a pipeline in the Swan Hills gas gathering pipeline system, north of the Judy Creek gas processing facility, resulted in an explosion and subsequent fire. Pengrowth initiated its Emergency Response Plan and the pipeline was quickly isolated and contained. No injuries occurred. 

The pipeline is currently in the final stages of being depressured and the fire is now minimal and contained to the immediate area of the rupture. The pipeline rupture and fire caused very limited damage or public disruption, as it occurred in a relatively isolated area with no other oil and gas facilities nearby and no public buildings or private residences in the vicinity. 

The Royal Canadian Mounted Police and the Swan Hills Fire Department responded to the incident. No specific cause of the pipeline rupture and fire is known at this time and a full investigation is being conducted. 

The incident has resulted in the shut-in of approximately 2,200 barrel of oil equivalent per day of Pengrowth production. This is due to the need to reduce gas production from several of the nearby large oil fields until pipeline repairs can be made. At this time repairs are anticipated to take five to ten days. Pengrowth will continue to monitor the situation and provide updates if necessary.



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