Susan L. Riddell Rose and James H. T. Riddell Now Control or Direct Different Holding Entities Formerly Controlled or Directed by Clayton H. Riddell

This press release is being issued pursuant to section 5.2 of National Instrument 62-104 – Take-Over Bids and Issuer Bids.

CALGARY, Oct. 4, 2018 /CNW/ - As a result of the passing of Mr. Clayton H. Riddell ("C. Riddell"), the voting shares held by C. Riddell in Dreamworks Investment Holdings Ltd. ("Dreamworks") ceased to be voting such that voting control of Dreamworks now rests with Susan L. Riddell Rose ("S. Rose") and the voting shares held by C. Riddell in Treherne Resources Ltd. ("Treherne") and Warner Investment Holdings Ltd. ("Warner") ceased to be voting such that voting control of Treherne and Warner now rests with James H. T. Riddell ("J. Riddell"), all by virtue of the articles of these companies. Each of Dreamworks, Treherne and Warner is a private company that was previously controlled or directed by the late C. Riddell.

Dreamworks, Treherne and Warner respectively own 16,396,814, 4,329,126 and 3,068,815 common shares ("Common Shares") of Perpetual Energy Inc. ("Perpetual"), representing approximately 26.92%, 7.11% and 5.04% of the outstanding Common Shares as of the date hereof. Prior to C. Riddell's passing, S. Rose owned 3,441,012 Common Shares (inclusive of options and warrants to acquire Common Shares which are vested or vest within 60 days), representing approximately 5.65% of the issued and outstanding Common Shares (inclusive of such options and warrants) and J. Riddell did not own any Common Shares or securities convertible into Common Shares. After C. Riddell's passing, S. Rose and J. Riddell now respectively own, or control or direct, approximately 32.57% and 12.15% of the outstanding Common Shares (and in the case of S. Rose, inclusive of her options and warrants to acquire Common Shares which are vested or vest within 60 days).

Presently, there is no change in investment intent as disclosed in press releases and/or early warning reports previously filed by C. Riddell in respect of these holdings of Dreamworks, Treherne and Warner.

SOURCE James H. T. Riddell

For inquiries or a copy of the related early warning report in respect of Perpetual, a copy of which is filed on www.sedar.com, please contact: Susan L. Riddell Rose, c/o Perpetual Energy Inc., Suite 3200, 605 5th Avenue S.W., Calgary, Alberta, T2P 3H5