The Benchmark of Energy Trusts

S e c o n d Q u a r t e r , 2 0 0 1

R E P O R T T O U N I T H O L D E R S

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HIGHLIGHTS - CONSOLIDATED FINANCIAL STATEMENTS

INCOME STATEMENTOil and gas sales $ 121,043 $ 91,014 33% $ 264,004 $ 181,885 45%

Distributable income $ 63,395 $ 44,990 41% $ 135,466 $ 93,561 45%Distributable income per trust unit

Based on weighted averageunits outstanding $ 0.936 $ 0.825 13% $ 2.057 $ 1.727 19%Based on actual distributionspaid or declared $ 0.830 $ 0.825 1% $ 1.970 $ 1.715 15%

Weighted average numberof units outstanding 67,727 54,548 24% 65,868 54,186 22%

BALANCE SHEETWorking capital $ (16,673) $ (19,826) -16% $ (16,673) $ (19,826) -16%Property, plant and equipment

and other assets $ 1,286,651 $ 814,804 58% $ 1,286,651 $ 814,804 58%Long-term debt $ 374,820 $ 241,616 55% $ 374,820 $ 241,616 55%Unitholders’ equity $ 801,563 $ 531,326 51% $ 801,563 $ 531,326 51%

DAILY PRODUCTIONCrude oil (barrels) 19,650 16,862 17% 20,039 17,326 16%Natural gas (thousands of

cubic feet) 75,753 72,761 4% 74,709 72,826 3%Natural gas liquids (barrels) 4,418 3,999 10% 4,385 4,253 3%Other 147 105 40% 57 79 -28%Total production (BOE) 6:1 36,840 33,093 11% 36,933 33,795 9%

PRODUCTION INCREASE(6:1 boe) (year over year) 11% 5% 9% 10%

PRODUCTION PROFILE(6:1 conversion)

Crude oil 54% 51% 54% 51%Natural gas 34% 37% 34% 36%Natural gas liquids 12% 12% 12% 13%

AVERAGE PRICESCrude oil (per barrel) $ 39.44 $ 37.53 5% $ 39.90 $ 37.48 6%Natural gas (per mcf) $ 5.72 $ 3.67 56% $ 6.98 $ 3.28 113%Natural gas liquids (per barrel) $ 34.42 $ 29.64 16% $ 37.64 $ 29.98 26%Average price per BOE 6:1 $ 36.11 $ 30.22 19% $ 39.49 $ 29.57 34%

UNIT TRADINGHigh $ 21.95 $ 19.25 $ 21.95 $ 19.25Low $ 17.11 $ 16.50 $ 17.11 $ 15.00Close $ 18.10 $ 19.10 $ 18.10 $ 19.10

Value $ 205,179 $ 125,721 63% $ 381,429 $ 199,893 91%Volume (thousands of units) 10,048 6,838 47% 18,832 11,392 65%

Three Months ended % Six Months ended %(thousands, except per unit amounts) June 30 Change June 30 Change(unaudited) 2001 2000 2001 2000

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REPORT TO UNITHOLDERS

Distributable IncomeDistributable income increased 41% to $63.4 million for the second quarter of 2001, from $45.0 million inthe second quarter of 2000. Distributable income per unit increased to $0.83/unit in the second quarterof 2001 from $0.825/unit in the second quarter of 2000. For the six months ended June 30, 2001,Pengrowth recorded $135.5 million in distributable income or $1.97/unit, compared to $93.6 million or$1.715/unit in the first six months of 2000.

Pengrowth’s year-to-date distributions history is summarized below:

Ex-Distribution Distribution Distribution AmountDate * Record Date Payment Date per Trust Unit

December 27, 2000 December 29, 2000 January 15, 2001 $0.34

January 30, 2001 February 1, 2001 February 15, 2001 0.40

February 27, 2001 March 1, 2001 March 15, 2001 0.43

March 28, 2001 March 30, 2001 April 15, 2001 0.38

April 27, 2001 May 1, 2001 May 15, 2001 0.33

May 30, 2001 June 1, 2001 June 15, 2001 0.29

June 27, 2001 June 29, 2001 July 15, 2001 0.26

July 27, 2001 July 31, 2001 August 15, 2001 0.28

August 29, 2001 August 31, 2001 September 15, 2001

September 26, 2001 September 28, 2001 October 15, 2001

October 30, 2001 November 1, 2001 November 15, 2001

November 29, 2001 December 3, 2001 December 15, 2001

*To benefit from the monthly cash distribution, unitholders must purchase or hold trust units prior to theex-distribution date

Pengrowth offers electronic direct bank deposits, distribution payments in U.S. dollars and a DistributionReinvestment Plan (DRIP) which allows unitholders the opportunity to reinvest their monthly distributionstowards the purchase of additional trust units without incurring brokerage commissions. The DRIP formand information may be accessed from our website at www.pengrowth.com.

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ProductionTotal BOE production has increased 11% in the second quarter of 2001, compared to the second quarterof 2000. For the six months ended June 30, 2001 production is 9% higher than the same period last year.

Three months ended Six months endedJune 30, June 30, % June 30, June 30, %

Daily Production 2001 2000 Change 2001 2000 Change

Crude oil (bbls/d) 19,650 16,862 +17% 20,039 17,326 +16%Natural gas (mcf/d) 75,753 72,761 +4% 74,709 72,826 +3%Natural gas liquids (bbls/d) 4,418 3,999 +10% 4,385 4,253 +3%Sulphur (Lt) 147 105 +40% 57 79 -28%Total boe/d (6:1) 36,840 33,093 +11% 36,933 33,795 +9%

Crude oil production increased 17% in the second quarter of 2001 compared to the second quarter of2000. This increase is attributable to acquisitions made in the fourth quarter of 2000 including interests inGoose River, House Mountain, Weyburn and Nipisi. For the six months ended June 30, 2001 crude oilproduction is 16% higher than the same period last year.

Natural gas production increased 4% in the second quarter of 2001 compared to the second quarter of2000. The acquisition of the Minnehik Buck Lake unit interest in December 2000 and the KaybobNotikewan unit interest in March, 2001 contributed to increased natural gas production. In addition, twoweeks of production associated with the acquisition of a royalty interest in the Sable Offshore EnergyProject on June 15, 2001 made a contribution to natural gas volumes.

The disposition of Portage Gas Unit in April 2001, production declines at other properties, as well as anincrease in gas volumes required for the miscible flood at Judy Creek partially offset the incrementalvolumes from recent acquisitions. For the first six months of 2001 natural gas production increased 3%over the same period last year.

Natural gas liquids production increased 10% in the second quarter of 2001 compared to the secondquarter of 2000 reflecting the recent acquisitions noted above. For the first half of 2001, natural gasliquids production increased 3% over the same period last year.

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Second Quarter 2001 Average Production Rates

Working Natural

Interest Natural Gas Oil

Owned Oil Gas Liquids Sulphur Equivalent

(%) (bpd) (mmcf/d) (bpd) (tpd) (boepd) (6:1)

Judy Creek BHL Unit 100.00% 8,395 0.5 1,524 – 10,005

Judy Creek West BHL Unit 94.58% 1,867 0.5 419 – 2,370

Weyburn Unit 9.74% 1,883 0.3 – – 1,938

McLeod River Various 14 9.7 333 – 1,959

Swan Hills Unit #1 10.45% 1,407 0.7 211 – 1,736

Goose River 42.25% 1,032 0.4 12 – 1,117

Monogram Gas Unit 53.82% – 9.8 – – 1,641

Hanlan Swan Hills Gas Pool Unit #1 7.78% – 7.4 5 44 1,278

Nipisi Non-Unit 95.00% 1,054 0.2 115 – 1,194

Enchant Various 1,040 0.5 20 – 1,135

Minnehik Buck Lake Unit #1 17.91% – 2.9 341 – 822

Dunvegan Gas Unit #1 7.97% – 5.3 294 – 1,182

Strachan Leduc D-3 Gas Unit #1 71.65% – 4.5 252 75 1,077

Other Swan Hills Various 813 2.0 238 – 1,376

Other Shallow Gas Various – 5.9 – – 984

Other Various 2,145 25.2 654 28 7,026

Total Production 19,650 75.8 4,418 147 36,840

For the first six months of 2001, Pengrowth’s production portfolio was weighted 54% towards crude oilwhile natural gas accounted for 34% of total production. Natural gas liquids and sulphur represented theremaining 12% of production.

With the acquisition of an 8.4% interest in the Sable Offshore Energy Project on June 15, the proportionof Pengrowth’s total production represented by natural gas will increase to approximately 43%.

PricesPengrowth’s average price per BOE of production increased 34% from $29.57/boe for the first six monthsof 2000 to $39.49/ boe for the first six months of 2001, reflecting the strong market for North Americannatural gas as well as continued strength of crude oil prices during the first half of this year.

Pengrowth’s average crude oil price increased 6% in the first six months of 2001 compared to the first sixmonths of 2000. This increase is due to a 3% increase in the WTI benchmark price for crude oil afteradjusting for the weaker Canadian exchange rate in 2001, as well as a reduction in Pengrowth’s crude oilhedges in 2001 as compared to the same period last year.

Pengrowth’s average natural gas price for the first six months of 2001 increased 113% to $6.98/mcfcompared to $3.28/mcf over the same period last year. This increase reflects the high spot pricesexperienced in the first half of 2001 (AECO increased 143% to average $8.52/GJ in the first six months of2001) offset in part by Pengrowth’s fixed price contracts and sales to aggregators at prices that fell shortof the spot market.

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Three months ended Six months endedAverage Prices C$ June 30, June 30, % June 30, June 30, %Change 2001 2000 Change 2001 2000 Change

Crude oil (per bbl) $39.44 $37.53 +5% $39.90 $37.48 +6% Natural gas (per mcf) $5.72 $3.67 +56% $6.98 $3.28 +113%Natural gas liquids (per boe) $34.42 $29.64 +16% $37.64 $29.98 +26%Total per boe (6:1) $36.11 $30.22 +19% $39.49 $29.57 +34%

Price Risk Management ProgramFor the first six months of 2001, Pengrowth’s revenues reflected the forward sale of 2,177 bpd of crude oilat an average price of C$37.12 per barrel. As spot prices exceeded this hedged position, an opportunitycost of $2.4 million is reflected in oil sales for the six months ended June 30, 2001. In addition, Pengrowthhad sold forward 14.0 mmcf/d of natural gas at a plantgate price of $2.96 /mcf. Consequently, anopportunity cost of $14.8 million (relative to the monthly AECO index price) is reflected in gas sales forthe six months ended June 30, 2001.

Looking forward, Pengrowth has entered into financial swap transactions that fix the price on:• 3,000 barrels of oil per day for the remainder of 2001 (15% of estimated oil production) at an average

price of C$38.36/bbl.

Pengrowth also has sales commitments to deliver natural gas at fixed prices in the future, as follows:• 2.3 bcf (12.3 mmcf/d or 11% of estimated production) for the second half of 2001 at an average

plantgate price of $2.97/mcf; and• 2.8 bcf (7.7 mmcf/d or 8% of estimated production) for 2002 at an average plantgate price

of $2.98/mcf.

Net IncomeNet income for the three months ended June 30, 2001 increased 62% to $33.8 million compared to$20.9 million in the second quarter of 2000. Net income for the six months ended June 30, 2001 increased62% to $75.8 million compared to $46.9 million for the similar period last year.

Operating CostsOperating costs increased to $22.2 million (or $6.61/boe) for the second quarter of 2001, compared to$15.4 million (or $5.13/boe) for the second quarter of 2000. For the six months ended June 30, 2001,operating costs were $43.8 million ($6.55 / boe), compared to $29.5 million ($4.80/boe) for the first halfof 2000. The increase in operating costs in 2001 compared to 2000 is attributable to property acquisitionsin late 2000 and the first half of 2001, as well as the high electricity rates in Alberta, particularly in thefirst quarter of 2001. Electricity prices in Alberta have recently declined to less than half of peak ratesseen earlier in the year.

Capital SpendingCapital expenditures for the six months ending June 30, 2001 totaled $33.8 million as compared with$27.5 million for the same period in 2000. Of the $33.8 million, $27.1 million was spent on drilling,completion and tie-ins, and $6.7 million was spent on facilities. In addition, during the first six months of2001, Pengrowth purchased miscible flood injectants of $40.1 million and amortized $22.5 million againstdistributable income. Injectant costs are amortized over a period of 30 months to match the period ofexpected incremental revenue.

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Judy Creek Gas Plant Complex

AcquisitionsOn June 15, 2001, Pengrowth closed the purchase of a royalty interest representing substantially all of thebeneficial interest in the natural gas and liquids production from an 8.4% working interest in the SableOffshore Energy Project (“SOEP”) reserves previously held by Nova Scotia Resources (Ventures) Limited.The gross purchase price was $265 million but the purchase price was adjusted for the net revenues andinterest from the effective date of December 1, 2000 until closing, which reduced the net purchase priceto approximately $228 million.

Pengrowth has entered into an agreement with the Province of Nova Scotia whereby PengrowthCorporation may acquire the shares of Nova Scotia Resources Limited for $65 million, subject to thesatisfaction of certain conditions. Pengrowth has arranged a $100 million credit facility to fund thisacquisition if required.

On March 9, 2001 Pengrowth closed the acquisition of an additional 43.5% working interest in the Kaybob Notikewin Unit for $25.2 million. Pengrowth now holds a 64.5% working interest in the KaybobNotikewin Unit and has assumed operatorship of this property. Kaybob currently produces approximately5.8 mmcf/d of natural gas and 29 bbls/d of natural gas liquids net to Pengrowth.

Dispositions During the first half of 2001, Pengrowth sold non-core properties for total aggregate proceeds of $22million, after adjustments. These dispositions included Pengrowth’s interest in the Portage Gas Unit for$6.0 million (closed April 30), Mitsue Gilwood Unit for $9.7 million on May 31, and the West Eagle Unit for$5.8 million on June 15.

Equity IssueOn May 31, 2001, Pengrowth successfully completed a public offering of 10,895,000 units at $20.70 perunit to raise total gross proceeds of $225,526,500. The net proceeds from this issue of approximately$213 million were used to re-pay bank indebtedness incurred to fund prior acquisitions of petroleum andnatural gas properties.

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Financial ResourcesPengrowth’s long-term debt at June 30, 2001 was $375 million, compared to $287 million at December 31,2000. The increase in debt is attributed to acquisitions and capital spending offset by proceeds of trustunits issued and property dispositions, as shown below:

Long-term Debt Continuity $millionsBalance at December 31, 2000 $287Proceeds from issue of trust units, options exercise and DRIP (219)Acquisitions, net of adjustments 250Dispositions, net of adjustments (22)Capital expenditures, excluding acquisitions 34Difference between solvent purchases and expenses 18Change in working capital and Remediation Trust Fund 27Balance at June 30, 2001 $375

The ratio of debt to trailing 12-month distributable income at June 30, 2001 was 1.4 times. Distributableincome covered interest expense by 13 times in the first six months of 2001.

Review of Development ActivitiesOf the $33.8 million capital expenditures in the first six months of 2001, $14.2 million was spent at JudyCreek, $3.7 million at Monogram, $3.0 million at McLeod River, $2.8 million at Weyburn, $1.9 million atStrachan, and $1.3 million at Enchant.

Second quarter development activities at Pengrowth’s operated properties include the following:

At Judy Creek:• Drilled a potential oil well in the NW section of ‘A’ Pool. Completion is currently in progress.• Drilled a successful 100% Pengrowth gas well which is currently producing 700 mcf/d.• Participated in a partner operated potential gas well that was abandoned.• Worked over one shut-in and two abandoned wells and successfully completed three gas wells, one of

which is on production at 250 mcf/d.• Drilled a horizontal injection well to extend water and miscible injection capabilities in the area.• Completed a workover of a previously abandoned well and successfully completed a 50% Pengrowth

well, adding production of 30 bbls of oil and 400 mcf of gas per day.

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At McLeod:• Drilled one potential gas well with another well currently drilling. Wet weather has restricted access

to the location and completion of the first well has been delayed.

At Enchant:• Drilled a Nisku oil well in the J & VV Pool. This well is currently producing 12 bopd but is currently

being evaluated and it appears additional stimulation may be required.• Successfully completed and stimulated an additional zone in a producing 100% oil well, achieving an

incremental 45 bopd.

At Kaybob Notikewan:• Completed a workover on a 65% Pengrowth shut-in gas well returning this well to production at

500 mcf/d.• Cleaned out the fill on one producing gas well and installed a plunger on another, resulting in total

incremental production of 400 mcf per day.

At Nipisi:• Reworked a shut-in 100% oil well, returning it to production at a rate of 60 bopd.• Successfully upgraded the pump on a 100% oil well resulting in incremental production of 25 bopd.

At Pengrowth’s partner-operated properties, during the first six months of 2001, Pengrowth participatedin approximately 130 wells drilled by partners (50.4 wells net to Pengrowth). Recent developmentactivities at non-operated properties include the following:

At House Mountain:• Participated in 4 horizontal wells with an average initial production rate of 94 bopd per well.• Re-activated 3 wells with an average production rate of 30 bopd per well.• Completed acid frac stimulations on 5 wells.

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At the Minnehik-Buck Lake Unit:• Completed a plant turn-around in late May and early June. The plant was shut down for a total of

12 days.• Participated in a co-generation project designed to generate electricity from waste steam. The first

phase of the project was to install gas powered turbines and this was completed during the plantturnaround. The structural groundwork is underway and it is anticipated that the project will becompleted and on stream by the end of the third quarter.

• A recently purchased well bore located at 10-3-46-6W5 was successfully deepened to access theunitized zone. The well was placed on stream in mid April and is producing at approximately2.3 mmcf/d (0.4 mmcf/d net to Pengrowth).

At the Monogram Gas Unit:• During the first quarter of 2001 Pengrowth participated in a 40 well infill program. The wells were all

tied-in and placed on production in the second quarter.• The operator experienced operating problems with two of the three sales compressors during the

second quarter resulting in reduced gas sales volumes. The operator has re-built the driver on one ofthe compressors and the second sales compressor is currently undergoing a major overhaul.

At the Swan Hills Unit No. 1:• Participated in the first of 7 high angle wells to be drilled in the east platform area of the unit. The

well could not be tested or completed due to poor weather conditions.

At the Weyburn Unit:• During May the operator was successful increasing the CO2 injection volumes from 45 to 85 mmcf/d.

The first production response has been observed from the CO2 flood and the initial gross incrementalproduction rate is estimated at approximately 500 bopd or 49 bopd net to Pengrowth.

• The phase 20 development drilling program has commenced with 4 of 20 wells being drilled to date.

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Sable OperationsOn June 15, 2001, Emera Inc. acquired an 8.4% working interest in the reserves, flow lines and productionplatforms associated with the SOEP project from Nova Scotia Resources (Ventures) Limited and created aroyalty on the reserves in favor of Pengrowth Corporation. The other Sable owners exercised rights of firstrefusal in respect to an 8.4% working interest in the balance of the Sable facilities.

Natural gas, natural gas liquids and water production are generally within design parameters includingincreased water production from the Venture 1 well. Deliverability from Sable is expected to increase asthe Venture 2 well is brought on-stream. Present activities include the application by Maritimes andNortheast Pipeline to expand capacity by installing additional compression at stations located inRichmond & Baillyville, Maine and a contract to provide gas to a 285 MW cogeneration plant in Saint JohnNew Brunswick. In addition, other initiatives are planed for Sable gas to fuel electrical generation in theHalifax area.

2001 Tax Estimate UpdatePengrowth forecasts that in the current commodity price environment, approximately 65% ofdistributions paid in 2001 will be taxable to unitholders, with the remainder of distributions treated asreturn of capital and thus tax deferred. The taxability may be reduced if Pengrowth makes additionalacquisitions and issues new equity during the balance of the year.

PENGROWTH CORPORATIONJames S. Kinnear, President

For further information, please contact:

Dan Belot, Manager, Investor Relations, CalgaryTelephone: (403) 233-0224 Facsimile: (403) 294-0051 Toll Free: 1-800-223-4122

Sally Elliott, Investor Relations, TorontoTelephone: (416) 362-1748 Facsimile: (416) 362-8191 Toll Free: 1-888-744-1111

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(Stated in thousands of dollars)As at As at

June 30 December 312001 2000

ASSETS (unaudited) (audited)CURRENT ASSETSCash $ 2,407 $ 4,533 Deposit on acquisition 3,000 –Accounts receivable 38,219 33,103Inventory 7,266 8,509

50,892 46,145

REMEDIATION TRUST FUND 5,892 5,515

PROPERTY, PLANT AND EQUIPMENT AND OTHER ASSETS 1,286,651 1,038,823

$ 1,343,435 $ 1,090,483

LIABILITIES AND UNITHOLDERS' EQUITYCURRENT LIABILITIESAccounts payable and accrued liabilities $ 24,357 $ 40,396Distributions payable to unitholders 41,361 48,010Due to Pengrowth Management Limited 1,544 1,941Current portion of obligation under capital lease 303 553

67,565 90,900

LONG-TERM DEBT (Note 3) 374,820 286,823

FUTURE SITE RESTORATION COSTS 28,425 25,285

FUTURE INCOME TAXES (Note 7) 71,062 45,510

TRUST UNITHOLDERS' EQUITY (Note 4) 801,563 641,965

$ 1,343,435 $ 1,090,483

COMMITMENT (Note 8)

See accompanying notes to the consolidated financial statements.

CONSOLIDATED BALANCE SHEETS

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(Stated in thousands of dollars except per unit amounts) Three months ended Six months ended(unaudited) June 30 June 30

2001 2000 2001 2000REVENUES

Oil and gas sales $ 121,043 $ 91,014 $ 264,004 $ 181,885Processing and other income 1,682 1,448 3,359 2,510Crown royalties (14,885) (16,626) (41,915) (30,512)Alberta Royalty Tax Credit 125 125 250 267Freehold royalties and mineral taxes (1,756) (1,486) (4,275) (3,130)

106,209 74,475 221,423 151,020Interest and other income 904 529 1,063 1,240

NET REVENUE 107,113 75,004 222,486 152,260

EXPENSESOperating 22,157 15,436 43,790 29,521Amortization of injectants for miscible floods 11,833 7,964 22,518 13,959Interest 5,090 4,010 9,929 7,781General and administrative 1,450 1,702 3,627 3,267Management fee 1,885 1,492 4,714 3,411Capital taxes 1,333 385 1,812 754Depletion and depreciation 27,938 21,176 56,748 42,752Future site restoration 1,565 1,895 3,556 3,854

73,251 54,060 146,694 105,299

INCOME BEFORE THE FOLLOWING 33,862 20,944 75,792 46,961

ROYALTY INCOME ATTRIBUTABLE TO ROYALTY UNITSOTHER THAN THOSE HELD BY PENGROWTH ENERGY TRUST 18 15 40 31

NET INCOME 33,844 20,929 75,752 46,930

Add: Depletion, depreciation and future site restoration 29,503 23,071 60,304 46,606Alberta Royalty Credit received during period 517 1,378 517 1,378

Deduct: Alberta Royalty Credit accrued for period (125) (125) (250) (267)Remediation expenses and trust fund contributions (344) (263) (857) (1,086)

DISTRIBUTABLE INCOME $ 63,395 $ 44,990 $ 135,466 $ 93,561

NET INCOME PER UNIT (Note 4) Basic $ 0.500 $ 0.384 $ 1.150 $ 0.866

Diluted $ 0.494 $ 0.372 $ 1.141 $ 0.853

DISTRIBUTABLE INCOME PER UNIT (Note 4)Based on weighted average units outstanding $ 0.936 $ 0.825 $ 2.057 $ 1.727

Based on actual distributions paid or declared $ 0.830 $ 0.825 $ 1.970 $ 1.715

See accompanying notes to the consolidated financial statements.

CONSOLIDATED STATEMENTS OF INCOME AND DISTRIBUTABLE INCOME

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(Stated in thousands of dollars) Three months ended Six months ended(unaudited) June 30 June 30

2001 2000 2001 2000CASH PROVIDED BY (USED FOR):

OPERATINGNet income $ 33,844 $ 20,929 $ 75,752 $ 46,930Items not involving cashDepletion, depreciation and future site restoration 29,503 23,071 60,304 46,606Amortization of injectants 11,833 7,964 22,518 13,959Purchase of injectants (22,027) (8,091) (40,114) (16,994)Expenditures on remediation (116) (154) (416) (362)

Funds generated from operations 53,037 43,719 118,044 90,139

Distributions (67,267) (46,537) (142,115) (90,086)Changes in non-cash operating working capital (Note 5) (9,718) (3,145) (17,845) (4,794)

(23,948) (5,963) (41,916) (4,741)

FINANCINGChange in long-term debt 27,847 5,901 87,747 11,310Proceeds from issue of trust units 215,774 12,308 219,312 19,367

243,621 18,209 307,059 30,677

INVESTINGDeposit on acquisition (3,000) – (3,000) –Expenditures on property acquisitions (215,552) – (249,709) –Expenditures on property, plant and equipment (19,849) (17,137) (33,765) (27,661)Proceeds on property dispositions 22,046 – 22,046 –Change in Remediation Trust Fund (166) 353 (377) 173Marketable securities – (656) – (656)Change in non-cash investing working capital (Note 5) (2,416) – (2,464) –

(218,937) (17,440) (267,269) (28,144)

INCREASE (DECREASE) IN CASH 736 (5,194) (2,126) (2,208)

CASH AND TERM DEPOSITS (BANK INDEBTEDNESS)AT BEGINNING OF PERIOD 1,671 1,731 4,533 (1,255)

CASH (BANK INDEBTEDNESS)AT END OF PERIOD $ 2,407 $ (3,463) $ 2,407 $ (3,463)

See accompanying notes to the consolidated financial statements.

CONSOLIDATED STATEMENTS OF CASH FLOW

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(Stated in thousands of dollars) Three months ended Six months ended(unaudited) June 30 June 30

2001 2000 2001 2000

Unitholders' equity at beginning of period $ 615,340 $ 543,079 $ 641,965 $ 558,590

Units issued, net of issue costs 215,774 12,308 219,312 19,367

Net income for period 33,844 20,929 75,752 46,930

Distributable income (63,395) (44,990) (135,466) (93,561)

TRUST UNITHOLDERS' EQUITY AT END OF PERIOD $ 801,563 $ 531,326 $ 801,563 $ 531,326

CONSOLIDATED STATEMENTS OF TRUST UNITHOLDERS' EQUITY

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PENGROWTH ENERGY TRUSTNOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSJUNE 30, 2001(Tabular amounts are stated in thousands of dollars except per unit amounts)

1. SIGNIFICANT ACCOUNTING POLICYThe interim consolidated financial statements of Pengrowth Energy Trust and Pengrowth Corporation(collectively referred to as “Pengrowth”) have been prepared by management in accordance withaccounting principles generally accepted in Canada. The interim consolidated financial statements havebeen prepared following the same accounting policies and methods of computation as the consolidatedfinancial statements for the fiscal year ended December 31, 2000. The disclosures provided below areincremental to those included with the annual consolidated financial statements. The interimconsolidated financial statements should be read in conjunction with the consolidated financialstatements and the notes thereto in Pengrowth’s annual report for the year ended December 31, 2000.

2. ACQUISITIONIn June 2001, Pengrowth acquired an interest in an oil and gas property for cash consideration of $228million.

3. LONG-TERM DEBTPengrowth has a $415 million revolving credit facility syndicated among nine financial institutions with anextendible 364 day revolving period and a three year amortization term period. In addition, it has a $35million demand operating line of credit that is currently reduced by outstanding letters of credit in theamount of approximately $10 million. Pengrowth also has available to it a $100 million acquisition facility.

4. TRUST UNITSThe authorized capital of Pengrowth is 500,000,000 trust units.

June 30, 2001 December 31, 2000Number Number

Trust Units Issued of units Amount of units Amount

Balance, beginning of period 63,852,198 $ 974,724 53,639,338 $ 796,224

Issued for cash 10,895,000 225,526 8,165,000 155,135

Less: issue expenses – (12,847) – (8,303)

Issued for cash on exercise of stock options 312,688 5,093 1,915,833 29,299

Issued for cash under DistributionReinvestment (“DRIP”) Plan 77,714 1,540 132,027 2,369

Balance, end of period 75,137,600 $1,194,036 63,852,198 $ 974,724

The per unit amounts for net income and distributable income are based on weighted average unitsoutstanding for the period. The weighted average units outstanding for the three months ended June 30,2001 were 67,727,300 units and for the six months ended June 30, 2001 were 65,868,024 units (threemonths ended June 30, 2000 – 54,548,153 units, six months ended June 30, 2000 – 54,185,575 units). Incomputing diluted net income per unit, 356,387 units were added to the weighted average number ofunits outstanding during the quarter ended June 30, 2001 (June 30, 2000 – 383,765 units) and 358,670units were added for the six months ended June 30, 2001 (six months ended June 30, 2000 – 275,458units) for the dilutive effect of employee stock options. The per unit amount of distributions paid ordeclared reflect actual distributions paid or declared based on units outstanding at the time.

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Trust Unit Option PlanAs at June 30, 2001, options to purchase 2,615,738 trust units were outstanding (December 31, 2000 –2,893,554) that expire at various dates to April 28, 2006.

June 30, 2001 December 31, 2000

Trust Unit Options Weighted WeightedNumber Average Number Average

of options Exercise price of options Exercise price

Outstanding at beginning of period 2,893,554 $ 17.45 4,041,287 $ 16.16

Granted 57,720 20.39 821,100 18.73

Exercised (312,688) 16.29 (1,915,833) 15.29

Cancelled (22,848) 17.84 (53,000) 16.85

Outstanding at period-end 2,615,738 $ 17.65 2,893,554 $ 17.45

Exercisable at period-end 2,056,590 $ 17.31 2,171,087 $ 17.51

5. CHANGE IN NON-CASH OPERATING WORKING CAPITAL

Three months ended Six months endedJune 30 June 30

2001 2000 2001 2000

Accounts receivable $ 4,093 $(1,777) $ (936) $(8,380)

Inventory 5,034 (411) 1,243 (940)

Accounts payable and accrued liabilities (18,587) (535) (17,755) 4,938

Due to Pengrowth Management Limited (258) (422) (397) (412)

$ (9,718) $(3,145) $(17,845) $(4,794)

CHANGE IN NON-CASH INVESTING WORKING CAPITAL

Three months ended Six months endedJune 30 June 30

2001 2000 2001 2000

Accounts payable for capital accruals $ 1,764 $ — $ 1,716 $ —

Note receivable on disposition of properties (4,180) — (4,180) —

$ (2,416) $ — $ (2,464) $ —

The cash payments made for taxes for the quarter ending June 30, 2001 were $1,399,000 (June 30, 2000 -$423,000) and for the six months ended June 30, 2001 were $1,829,000 (six months ended June 30, 2001 -$778,000). Cash payments for interest for the quarter ending June 30, 2001 were $6,178,000 (June 30,2000 - $5,743,000) and for the six months ended June 30, 2001 were $15,180,000 (six months ended June30, 2000 - $9,242,000)

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6. FINANCIAL INSTRUMENTSForward and Futures ContractsPengrowth has a price risk management program whereby the commodity price associated with a portionof its future production is fixed. Pengrowth sells forward a portion of its future production through acombination of fixed price sales contracts with customers and commodity swap agreements with financialcounterparties. The forward and futures contracts are subject to market risk from fluctuating commodityprices and exchange rates however, gains or losses on the contracts are offset by changes in the value ofPengrowth’s production.

As at June 30, 2001, Pengrowth had fixed the price applicable to future production as follows:

Crude Oil Natural GasVolume Price Volume Plantgate Price

(bbl/d) C$/bbl (mcf/d) C$/mcf

2001 3,000 $38.36 12,268 $2.972002 – – 7,736 $2.98

The estimated fair value of the crude oil financial swap contracts and the natural gas fixed price salescontracts have been determined based on the amounts Pengrowth would receive or pay to terminate thecontracts at period-end. At June 30, 2001 the amount Pengrowth would pay to terminate the crude oiland natural gas contracts would be $269,000 and $6,148,000, respectively.

7. INCOME TAXESThe net book value of property, plant and equipment exceed the cost basis for income tax purposes by$159,332,000 and a future income liability of $71,062,000 has been recorded in respect thereof.

8. COMMITMENTPengrowth has entered into an agreement with the Province of Nova Scotia whereby Pengrowth mayacquire the shares of Nova Scotia Resources Limited for $65 million, subject to satisfaction of certainconditions by the Province of Nova Scotia.

DIRECTORS OF PENGROWTH CORPORATIONThomas A. CummingBusiness Consultant

James S. KinnearPresident, Pengrowth Management Limited

Francis G. VetschPresident, Quantex Resources Ltd.

Stanley H. WongPresident, Carbine Resources Ltd.

John B. ZaozirnyCounsel, McCarthy Tetrault

Director EmeritusThomas S. DobsonPresident, T.S. Dobson Consultant Ltd.

OFFICERS OF PENGROWTH CORPORATIONJames S. KinnearPresident and Chief Executive Officer

Robert J. WatersVice-President, Finance and Chief Financial Officer

Gordon M. AndersonVice-President, Treasurer

Henry D. McKinnonVice-President, Operations

Charles V. SelbyCorporate Secretary

TRUSTEEComputershare Trust Company of Canada

BANKERSBank Syndicate Agent: Royal Bank of Canada

AUDITORSKPMG LLP

ENGINEERING CONSULTANTSGilbert Laustsen Jung Associates Ltd.

STOCK EXCHANGE LISTINGSThe Toronto Stock ExchangeSymbol PGF.UN

PENGROWTH ENERGY TRUSTHead OfficeSuite 700, 112 - 4 Avenue S.W.Calgary, Alberta T2P 0H3 CanadaTelephone: (403) 233 0224Toll-Free: 1 800 223 4122Facsimile: (403) 265 6251Email: pengrowth@pengrowth.comWebsite: http://www.pengrowth.com

Toronto Investor Relations OfficeSuite 1200, 141 Adelaide Street W.Toronto, Ontario M5H 3L5 CanadaTelephone: (416) 362 1748Toll-Free: 1 888 744 1111Facsimile: (416) 362 8191

ABBREVIATIONSbbl barrelmbbls thousand barrelsmmbbls million barrelsbpd barrels per daybopd barrels of oil per dayboe* barrels of oil equivalentmboe* thousand barrels of oil equivalentmmboe* million barrels of oil equivalentboepd* barrels of oil equivalent per daymcf thousand cubic feetmcf/d thousand cubic feet per daymmcf million cubic feetmmcf/d million cubic feet per daybcf billion cubic feetPengrowth Energy Trust (EnergyTrust)Pengrowth Corporation (Corporation)*6 mcf of gas = 1 barrel of oil

Printed in Canada by Quebecor World Calgary.

C O R P O R A T E I N F O R M A T I O N

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The Benchmark of Energy Trusts

Head OfficeSun Life Plaza - East TowerSuite 700, 112 - 4th Avenue S.W.Calgary, Alberta T2P 0H3 CanadaWebsite: http://www.pengrowth.com