Article content

Pengrowth Energy Corp. is cutting its 2015 capital spending budget, joining other Calgary producers who are moving to preserve capital after a dramatic slide in world oil prices in July dashed hopes of a second half recovery.

In a news release Thursday after markets closed, the intermediate said it will cut its full year budget by 15 per cent, from a midpoint of $230 million to $200 million, but will not lower its guidance on production. Benchmark U.S. oil prices closed below $45 US per barrel on Thursday.

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Pengrowth cuts $30 million from capital budget as oil prices tank Back to video

“These are challenging times for the oil and gas industry and Pengrowth continues to take prudent steps to ensure the financial health and stability of the company in this low commodity price environment,” said president and chief executive Derek Evans in a news release.

The company will continue to try to sell $600 million in assets, he added, to reduce corporate debt. It noted a seven per cent reduction in head office full-time staff over the past eight months as it continues to cut costs.