CALGARY, Aug. 6, 2018 /CNW/ – (TSX:PMT) – Perpetual Energy Inc. (“Perpetual” or the “Company”) announces that it has received a Statement of Claim filed by PricewaterhouseCoopers Inc. LIT (“PwC”), in its capacity as trustee in bankruptcy of Sequoia Resources Corp. (“Sequoia”), with the Alberta Court of Queen's Bench (the “Court”), against Perpetual, Perpetual Operating Trust, Perpetual Operating Corp. and Susan Riddell Rose. The claim relates to an almost two year old transaction when, on October 1, 2016, Perpetual sold its then legacy shallow gas assets in east central and northeast Alberta (the “Shallow Gas Properties”) to an arm's length third party at fair market value at the time after an extensive and lengthy marketing, due diligence and negotiation process. This transaction was one of several completed by Sequoia. Sequoia assigned itself into bankruptcy on March 23, 2018. PwC is seeking an order from the Court to either set this transaction aside and declare it void or damages of approximately $217 million.
Perpetual acted in good faith, lawfully and appropriately in all aspects of this transaction. In light of Sequoia's bankruptcy, coupled with recent industry participant and government and regulatory initiatives relating to the Alberta orphan well fund, the claim appears to be an opportunistic and tactical attempt to pass Sequoia's future asset retirement obligations relating to the Shallow Gas Properties on to Perpetual and related parties. Perpetual believes it is being unfairly targeted and is unaware of any fact or circumstance that would support any of the allegations being made by PwC and, accordingly, believes that the claim is entirely without merit. The Company has engaged appropriate advisors and will vigorously defend itself against this claim using all available legal avenues.
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.