CALGARY,
AB, Nov. 22, 2023 /CNW/ - Perpetual Energy
Inc. ("Perpetual", or the "Company") (TSX: PMT) is pleased to
announce that it has closed its previously announced asset
disposition of certain assets at Mannville in Eastern Alberta to Canadian private operator
Pointbreak Resources for gross proceeds of $35.8 million in cash, prior to customary
purchase price adjustments (the "Mannville Transaction") with a
September 1, 2023 effective date. The
properties included in the Mannville Transaction comprise
substantially all of the Company's production in Eastern Alberta which averaged 1,431 boe/d
(66% conventional heavy oil) during the third quarter of 2023.
Proceeds from the Mannville Transaction will be used to reduce
bank debt and manage future maturities on the Company's Term Loan
and Senior Notes and other obligations as they come due, as well as
provide Perpetual with the liquidity to invest in its remaining
assets at East Edson and pursue
other new venture opportunities.
ABOUT PERPETUAL
Perpetual is an oil and natural gas exploration, production and
marketing company headquartered in Calgary, Alberta. Perpetual owns a diversified
asset portfolio, including liquids-rich conventional natural gas
assets in the deep basin of West Central Alberta, and undeveloped
bitumen leases in Northern
Alberta. Additional information on Perpetual can be accessed
at SEDAR+ at www.sedarplus.com or from the Company's website at
www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
ADVISORIES
VOLUME CONVERSIONS
Barrel of oil equivalent ("boe") may be misleading, particularly
if used in isolation. In accordance with NI 51-101, a conversion
ratio for conventional 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 conventional natural gas and heavy crude
oil, based on the current prices of natural gas and crude oil,
differ significantly from the energy equivalency of 6 Mcf:1 bbl. A
conversion ratio of 1 bbl of heavy crude oil to 1 bbl of NGL has
also been used throughout this news release.
ABBREVIATIONS
The following abbreviations used in this news release have the
meanings set forth below:
boe
barrels of oil equivalent
boe/d
barrels of oil equivalent per day
SOURCE Perpetual Energy Inc.