Pengrowth Energy Corporation and NAL Energy Corporation have entered into an arrangement agreement that provides for the strategic combination of Pengrowth and NAL.
Under the terms of the Arrangement, NAL shareholders will receive 0.86 of a Pengrowth share for each NAL share held (the "Exchange Ratio"). Based on the March 22, 2012 closing prices on the Toronto Stock Exchange (the "TSX") of Pengrowth and NAL, the Exchange Ratio reflects a premium of 9.7% for NAL shareholders. Based on the 20-day volume-weighted average prices on the TSX of Pengrowth and NAL, the Exchange Ratio represents a premium of 11.0% for NAL shareholders. Upon completion of the Arrangement, the former NAL shareholders will own approximately 26% of Pengrowth.