CALGARY, Aug. 16, 2019 /CNW/ - (TSX:PMT) - Perpetual Energy Inc. ("Perpetual" or the "Company") is pleased to announce that the Alberta Court of Queen's Bench (the "Court") has dismissed and struck all but one of the claims filed by PriceWaterhouseCoopers Inc. LIT ("PWC"), in its capacity as trustee in bankruptcy of Sequoia Resources Corp. ("Sequoia") against Perpetual and Sue Riddell Rose, the Company's President and Chief Executive Officer ("Ms. Rose"). These claims relate to a transaction that involved the sale by Perpetual of legacy shallow gas properties in October 2016 to an arm's length third party purchaser after an extensive and lengthy marketing, due diligence and negotiation process.
Consistent with the position advanced from the outset by Perpetual and Ms. Rose, the Court ruled in favour of Perpetual and Ms. Rose and struck PWC's oppression claim and claim for relief on the grounds of public policy, statutory illegality and equitable rescission. The Court also stated that no claim could be made personally against Ms. Rose in any manner whatsoever. Moreover, the Court reiterated that at all times Ms. Rose appropriately discharged her fiduciary duties in connection with this transaction.
Despite referring several times to this transaction as one of "arm's length" in the decision, the Court did not find that the test for summary dismissal relating to whether the transaction was an arm's length transfer for purposes of section 96(1) of the Bankruptcy and Insolvency Act (the "BIA") was met, on the balance of probabilities. Accordingly, the BIA claim was not dismissed or struck and only that part of the claim can continue against Perpetual only. Notwithstanding that one of the claims remains, Perpetual continues to be of the view that the claim is completely opportunistic by PWC and entirely without merit and will continue to vigorously defend itself against it. The Company remains highly confident that it will be completely successful in defending this outstanding part of the claim and is evaluating all of its options in this regard including a potential appeal and seeking substantial costs against PWC.
The transcript of this decision and the written reasons for the decision, when issued, will be posted to the Company's website at www.perpetualenergyinc.com once available from the Court. Further information can be obtained by reviewing the public court documents that pertain to the action number 1801-10960, as filed with the Court, Calgary Judicial Centre.
Perpetual is an oil and natural gas exploration, production and marketing company headquartered in Calgary, Alberta. Perpetual operates a diversified asset portfolio, including liquids-rich natural gas assets in the deep basin of west central Alberta, heavy oil and shallow natural gas in eastern Alberta, with longer term opportunities through undeveloped oil sands leases in northern Alberta. Additional information on Perpetual can be accessed at www.sedar.com or from the Corporation's website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
Certain information regarding Perpetual in this news release including management's assessment of future plans and operations may constitute forward-looking information or statements under applicable securities laws. The forward looking information includes, without limitation, statements made with respect to the Company's ability to successful defend itself with respect to ongoing litigation and the potential course of actions that can be taken in doing so. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this news release, which assumptions are based on management's 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 news 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, 2018 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). In addition, defence costs of legal claims can be substantial, even with respect to claims that have no merit and due to the inherent uncertainty of the litigation process, the resolution of the legal proceeding to which the Company has become subject could have a material effect on the Company's financial position and results of operations. 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 law.
SOURCE Perpetual Energy Inc.
For further information: For additional information please contact: Perpetual Energy Inc., Suite 3200, 605 - 5 Avenue SW Calgary, Alberta, Canada T2P 3H5, Telephone: 403 269-4400, Fax: 403 269-4444, Email: [email protected]; Susan L. Riddell Rose, President and Chief Executive Officer, W. Mark Schweitzer, Vice President Finance and Chief Financial Officer