Jan 20 (Reuters) - Pengrowth Energy Corp PGF.TO :
* Announces prudent 2016 capital budget, operational update and temporary
suspension of dividend
* Says board of directors has approved a $60 to $70 million capital budget for
2016
* Expects to generate annual average production of between 59,000 and 61,000
barrels of oil equivalent per day (boe/d) in 2016
* Says 2016 capital budget will focus on maintenance initiatives and does not
contemplate a drilling program
* Says board of directors has suspended the quarterly dividend
* Says no cash dividend will be paid for the first quarter of 2016.
* Gross operating expenses in 2016 expected to decline by 6 percent from 2015
primarily due to company's cost containment efforts in 2015
* Continue to seek out opportunities to further reduce operating costs,
including seeking further cost reductions for services.
* Says 2016 budget does not contemplate any development drilling
* Says still plans to continue with its non-core asset sales process throughout
2016
* Expects annual average production from lindbergh to grow to 16,500 bbl/d in
2016
* Pengrowth expects to receive regulatory approval for the expansion phase of
lindbergh in the first half of the year
* Source text for Eikon ID:nMKWVGg7ta
* Further company coverage PGF.TO