CALGARY, Oct. 3, 2016 /PRNewswire/ - (TSX:PMT)
- Perpetual Energy Inc. ("Perpetual", the "Corporation" or
the "Company") is pleased to announce that it has closed the
previously disclosed strategic disposition of certain of its mature
shallow gas properties in east central and northeast Alberta (the "Shallow Gas Properties").
Macquarie Capital Markets Canada Ltd. acted as financial advisor to
the Corporation with respect to the transaction.
Pursuant to the transaction, Perpetual will materially increase
its liability management ratio as defined by the Alberta Energy
Regulator to over 4.2 through the disposition of all of the
liabilities associated with the Shallow Gas Properties, and through
the retention of its higher netback core, liquids-rich natural gas
assets in West Central Alberta as well as heavy oil and natural gas
assets in the Mannville and Panny
areas in northeast Alberta.
Despite the loss of close to 35.5 MMcf/d of current production from
the Shallow Gas Properties, Perpetual's funds flow is expected to
be positively impacted as a result of the disposition using current
forward prices for natural gas. Furthermore, through gas marketing
arrangements related to the transaction, Perpetual retains
essentially full natural gas price upside exposure on the forecast
base production from the Shallow Gas Properties should AECO natural
gas prices exceed $2.81/GJ through
August 2018, with no operating
exposure or future capital spending commitments.
Forward-Looking Information
Certain information regarding Perpetual in this news release
including management's assessment of future plans and operations
may constitute forward-looking statements under applicable
securities laws. The forward-looking information includes, without
limitation, statements regarding the anticipated value and benefits
including the expected impact on the Corporation's financial
position and benefits for Perpetual's shareholders; the impact of
the transaction on the Corporation's net asset value; forecast and
realized commodity prices and future funds flow. Various
assumptions were used in drawing the conclusions or making the
forecasts and projections contained in the forward-looking
information contained in this press release, which assumptions are
based on management analysis of historical trends, experience,
current conditions, and expected future developments pertaining to
Perpetual and the industry in which it operates as well as certain
assumptions regarding the matters outlined above. Forward-looking
information is based on current expectations, estimates and
projections that involve a number of risks, which could cause
actual results to vary and in some instances to differ materially
from those anticipated by Perpetual and described in the forward
looking information contained in this press release. Undue reliance
should not be placed on forward-looking information, which is not a
guarantee of performance and is subject to a number of risks or
uncertainties, including without limitation those described
under "Risk Factors" in Perpetual's Annual
Information Form and MD&A for the year ended December 31, 2015 and those included in other
reports on file with Canadian securities regulatory authorities
which may be accessed through the SEDAR website
(www.sedar.com) and at Perpetual's website
(www.perpetualenergyinc.com). Readers are cautioned
that the foregoing list of risk factors is not exhaustive.
Forward-looking information is based on the estimates and opinions
of Perpetual's management at the time the information is released
and Perpetual disclaims any intent or obligation to update publicly
any such forward-looking information, whether as a result of new
information, future events or otherwise, other than as expressly
required by applicable securities laws.
Volume Conversions
Barrel of oil equivalent ("boe") may be
misleading, particularly if used in isolation. In accordance with
National Instrument 51-101, a conversion ratio for natural gas of 6
Mcf:1 bbl has been used, which is based on an energy equivalency
conversion method primarily applicable at the burner tip and does
not represent a value equivalency at the wellhead. In addition,
utilizing a conversion on a 6 Mcf:1 bbl basis may be misleading as
an indicator of value as the value ratio between natural gas and
crude oil, based on the current prices of natural gas and crude
oil, differ significantly from the energy equivalency of 6 Mcf:1
bbl.
About Perpetual
Perpetual Energy Inc. is a Canadian energy company with a
spectrum of resource-style opportunities spanning liquids-rich
natural gas in the Alberta deep
basin, shallow gas, heavy oil and bitumen. Perpetual's shares are
listed on the Toronto Stock Exchange under the symbol "PMT".
Further information with respect to Perpetual can be found at its
website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
SOURCE Perpetual Energy Inc.
