May 5, 2011 / 10:15 PM / in 6 years

UPDATE 1-Pengrowth Energy production dips on pipeline rupture

* Q1 oil and gas sales drop 5 pct to C$341.2 mln

* Q1 total production falls slightly to 73,634 boepd

* Q1 EPS C$0.02 vs C$0.48 year-ago (Follows alerts)

May 5 (Reuters) - Canadian oil and gas explorer Pengrowth Energy Corp’s quarterly production fell 3 percent, hurt by a pipeline rupture at its Alberta project.

Total production for the first quarter fell to 73,634 barrels of oil equivalent per day (boepd), from 75,627 boepd last year, mainly due to the rupture at its Swan Hills gas gathering system in Alberta.

The Swan Hills trend is the company’s key oil producing area.

Pengrowth said production in the first quarter was also hurt by cold weather operational outages and delays in obtaining equipment to carry out planned fracture stimulations.

Oil and gas sales fell 5 percent to C$360.2 million.

The company reiterated its forecast 74,000-76,000 boepd for the full year.

The company said it would be increasing its 2011 capital program by $150 million to $550 million, which will only begin to reflect in the fourth quarter.

For the January-march quarter, the company’s net income fell 95 percent to C$5.4 million, or 2 Canadian cents per share.

The decline was due to a change in value in some of its commodity risk management contracts that resulted in an unrealized loss of $68.3 million, compared with a gain of $63.3 million in the year-ago quarter.

On Dec 31, 2010, the company completed its conversion from an open-end investment trust to a corporation.

Shares of the Calgary, Alberta-based company closed at C$12.46 Thursday on the Toronto Stock Exchange. (Reporting by Amruta Sabnis in Bangalore; Editing by Saumyadeb Chakrabarty)

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