Pengrowth Energy Trust Announces First Quarter 2008 Results

Pengrowth Corporation, administrator of Pengrowth Energy Trust (TSX: PGF.UN) (NYSE: PGH) (collectively "Pengrowth"), is pleased to announce the interim unaudited operating and financial results for the three month period ended March 31, 2008.

Pengrowth reported a net loss of $56.6 million ($0.23 per trust unit) in the first quarter of 2008 compared to a net loss of $3.7 million in the fourth quarter of 2007 ($0.01 per trust unit) and $69.8 million ($0.29 per trust unit) in the same period last year. The net loss is due primarily to unrealized mark-to-market losses on commodity risk management contracts of $165.7 million and unrealized foreign exchange losses of $36.6 million. The mark-to-market losses are due to stronger commodity prices, while the unrealized foreign exchange loss resulted primarily from the impact of a modest weakening of the Canadian dollar on our foreign denominated debt in the first quarter. The increase in net loss was partially offset by higher operating netbacks and a future tax reduction of $84.5 million.

During the first quarter of 2008, Pengrowth generated cash flow from operating activities of approximately $216.2 million ($0.87 per trust unit) as compared with $196.3 million ($0.80 per trust unit) in the fourth quarter of 2007 and $136.4 million ($0.56 per trust unit) in the same period last year. The increase in cash flow from operations over the prior periods is due to higher commodity prices partially offset by lower production volumes and higher royalty expense.

Distributions declared totaled $167.2 million versus $166.6 million during the fourth quarter of 2007 and $183.5 million in the first quarter last year. During the first quarter, Pengrowth distributed $0.675 per trust unit to its unitholders which is 77 percent of cash flow from operating activities. Pengrowth's distributions remained stable at $0.225 per trust unit per month, up to and including our most recently announced May 15, 2008 distribution.

Daily production was relatively stable in the first quarter of 2008 at 82,711 boe per day when compared to the fourth quarter of 2007 and decreased approximately eight percent when compared to the first quarter of 2007. The decrease in the first quarter 2008 and fourth quarter 2007 is primarily due to the completion of the 2007 disposition program. In addition, operational issues related to extreme cold weather during the first quarter also negatively impacted volumes. Pengrowth anticipates full year average daily production in the range of 80,000 boe per day to 82,000 boe per day excluding any impact from potential future acquisitions or dispositions.

Development capital for the first quarter of 2008 totaled $84.9 million, with approximately 85 percent spent on drilling, completions and facilities. Pengrowth participated in drilling 141 gross wells (68.3 net wells) with a success rate of 98 percent. In addition to the development capital, $3.2 million was spent at Lindbergh, our oil sands project and $5.4 million was spent on leasehold improvements.

Note regarding currency: all figures contained within this report are quoted in Canadian dollars unless otherwise indicated.

President's Message

To our valued unitholders,

I am pleased to announce the unaudited quarterly results for the three months ended March 31, 2008. During the first quarter, Pengrowth provided stable distributions to unitholders, met our operating targets and executed a portion of our $355 million capital development program. The 2008 capital program is focused on maximizing unitholder returns through the allocation of capital on select high return projects, the active pursuit of improved reserve recovery including the CO2 pilot project at Judy Creek and continued improvements in ongoing operations.

Pengrowth generated cash flow from operating activities for the first quarter of 2008 of $216.2 million, a ten percent increase over the previous quarter and a 58 percent increase over the first quarter of 2007. In addition, Pengrowth's operating netbacks increased 14 percent to $33.65 per boe compared to $29.56 per boe in the fourth quarter of 2007 and 13 percent compared to $29.87 in the first quarter of 2007.

The cash flow from operating activities and netback increases were mainly a result of the strength in WTI crude oil prices and the partial recovery in natural gas prices which more than offset lower production volumes and higher royalty expense. Operating costs were relatively stable quarter over quarter. However, the higher commodity prices, especially crude oil prices which are typically quoted in U.S. dollars, were moderated somewhat by the continued strength of the Canadian dollar in relation to the U.S. dollar and as such, Pengrowth's average realized crude oil price did not fully reflect the record high U.S. dollar benchmark crude oil prices set in the first quarter of the year.

Pengrowth's exposure to the higher crude oil prices was also tempered somewhat by our risk management strategy. Pengrowth uses forward price swaps to manage our exposure to commodity price fluctuations, to provide a measure of stability to monthly cash distributions and to partially secure returns on significant new acquisitions, such as the Esprit Energy Trust, Carson Creek and ConocoPhillips properties acquisitions which closed in late 2006 and early 2007. Realized light oil commodity risk management losses for the first quarter were $32.8 million partially offset by a natural gas commodity risk management gain of $4.4 million. For the remainder of 2008, Pengrowth has approximately 46 percent of liquids hedged at Cdn $77.69 per boe and 41 percent of natural gas hedged at Cdn $8.41 per mcf.