CALGARY, Sept. 10, 2012 /CNW/ - Perpetual Energy Inc. ("Perpetual" or
the "Corporation") is pleased to announce further positive results from
the Corporation's asset disposition program announced in November 2011.
Subsequent to the end of the second quarter Perpetual has closed
several transactions for realized proceeds of $14.0 million from the
sale of assets in southern and northeast Alberta. The disposed assets
consisted of non-core assets in northeast Alberta, shut-in gas over
bitumen reserves and the strategic crystallization of value on a
portion of an oil pool in southern Alberta. As part of the strategic
oil transaction, the Corporation received an additional capital
commitment of $1.1 million in late August to advance the development of
a Mannville heavy oil pool for implementation of an enhanced oil
recovery scheme. The dispositions include production of approximately
147 bbl/d of oil and 2.0 MMcf/d of gas production net to Perpetual.
Perpetual will continue to receive the gas over bitumen financial
solution associated with the shut-in gas reserves.
With the recent dispositions, total proceeds realized through the asset
disposition program now total $165 million, exceeding the targeted $75
to $150 million. The proceeds of the dispositions have been applied to
reduce outstanding bank debt. Current drawings on the Corporation's
credit facility are approximately $85 million relative to a $140
million borrowing base which is confirmed through October 31, 2012, the
next scheduled date for the customary semi-annual review by the lenders
of the credit facility.
Peters & Co. Limited North American Oil and Gas Conference
Perpetual also advises that Management will be presenting at the 16th Annual Peters & Co. Limited 2012 North American Oil and Gas Conference
at the Ritz Carlton Hotel in Toronto at 9:55 a.m. Eastern Time on
Wednesday, September 12, 2012. A copy of the presentation will be
posted to Perpetual's website, www.perpetualenergyinc.com shortly before the presentation.
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 capital commitments, future asset development, outstanding
bank debt and Perpetual's borrowing base, gas over bitumen credits and
production levels. 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 MD&A and Annual Information Form for the year
ended December 31, 2011 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.
Perpetual Energy Inc. is a natural gas-focused Canadian energy company.
Perpetual's shares and convertible debentures are listed on the Toronto
Stock Exchange under the symbol "PMT", "PMT.DB.D" and "PMT.DB.E",
respectively. 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.
For further information:
Perpetual Energy Inc.
Suite 3200, 605 - 5 Avenue SW Calgary, Alberta, Canada T2P 3H5
Telephone: 403 269-4400
Fax: 403 269-4444
Susan L. Riddell Rose
President and Chief Executive Officer
Cameron R. Sebastian
Vice President, Finance and Chief Financial Officer
Claire A. Rosehill
Business and Investor Relations Analyst