Perpetual Energy Inc. updates asset disposition program
CALGARY, Sept. 10, 2012 /PRNewswire/ - 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.