CALGARY, May 14, 2018 /CNW/ – (TSX:PMT) – Perpetual Energy Inc. (“Perpetual”, or the “Company”) is pleased to announce that it has closed the disposition of non-core royalty interests in eastern Alberta for gross proceeds of $10.0 million. The disposed assets were comprised of the 1% gross overriding royalty interest previously retained on 42 net sections (27,722 net acres) of undeveloped oil sands leases in northeast Alberta sold in June 2015 and March 2016. Approximately 5,700 boe of royalty interest reserve volume representing $0.2 million of reserve value was assigned to the royalty lands in the Company’s third-party engineering report prepared by McDaniel and Associates Consultants Ltd. (“McDaniel”) as at December 31, 2017. The royalty interests sold contributed less than $0.05 million to adjusted funds flow during the first quarter of 2018. The effective date of the transaction is May 1, 2018.
Proceeds from the disposition will be used to reduce the outstanding balance of the Company’s reserve-based credit facility. After giving effect to the disposition and the current market value of the Company’s Tourmaline Oil Corp. (“TOU”) share investment, the Company had available liquidity at March 31, 2018 of approximately $43.2 million.
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.
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.