CALGARY, AB, Aug. 12, 2021 /CNW/ - (TSX: PMT) – Perpetual
Energy Inc. ("Perpetual", or the "Company") is pleased to release
its second quarter 2021 financial and operating results. Select
financial and operational information is outlined below, and should
be read in conjunction with Perpetual's unaudited condensed interim
consolidated financial statements and related Management's
Discussion and Analysis ("MD&A") for the three and six months
ended June 30, 2021, which are
available through the Company's website at
www.perpetualenergyinc.com and SEDAR at www.sedar.com.
SECOND QUARTER 2021 HIGHLIGHTS
- Production of 5,099 boe/d (73% conventional natural gas), at
the high end of second quarter guidance and down 2% from the first
quarter of 2021 as no new wells were placed on production during
the quarter. Perpetual had previously disposed of a 50% working
interest in the East Edson
liquids-rich natural gas property in West Central Alberta,
effective April 1, 2020 for
consideration which included a 50% working interest carry to drill,
complete and tie-in eight wells. Production averaged 3,662 boe/d in
the second quarter of 2020, representing the starting point from
which Perpetual has grown production. Relative to Q2 2020, second
quarter 2021 production is up 39% year over year, reflecting the
commencement of production from seven (3.5 net) new carried
interest wells at East Edson and
the restart of heavy crude oil production which was shut-in late in
the first quarter of 2020 in response to extremely low oil
prices.
- Adjusted funds flow of $2.3
million ($0.04 per share), a
dramatic turnaround from the negative $3.3
million adjusted funds flow from the same quarter a year
prior.
- Net income of $27.0 million
($0.43/share), up from the
$2.7 million net loss reported in the
first quarter of 2021. The increase was primarily driven by the
non-cash impairment reversal of $30.1
million recognized in the second quarter.
- Cash flows from operating activities of $2.9 million, up $1.2
million from the first quarter of 2021, reflecting higher
realized natural gas and oil prices.
- Cash costs of $9.0 million
($19.34/boe), up $1.7 million from the first quarter of 2021
($15.41/boe) and $1.7 million from the second quarter of 2020
($21.93/boe). Increased cash costs
reflect higher royalties and production and operating expenses
following the improvement in commodity prices and the continued
reactivation of heavy crude oil production.
- Operating netbacks increased to $10.71/boe from $8.65/boe in Q1 2021, reflecting the continued
strengthening of Western Canadian Select ("WCS") benchmark oil
prices. Compared to the second quarter of 2020, operating netbacks
increased approximately three times from $2.92/boe.
- Exploration and development spending of $1.6 million, with the commencement of drilling
of the first of two (1.0 net) wells at Marten Hills which spud on
June 15, 2021. The two wells, each
completed with eight horizontal lateral legs, were placed on stream
after the end of the quarter and are currently recovering oil-based
drilling fluids at rates over 400 bbl/d and no water. Oil sales are
expected to commence later in August.
- Perpetual continued its active abandonment and reclamation
program, executing $0.8 million of
abandonment and reclamation projects and receiving $0.5 million of funding from Alberta's Site Rehabilitation Program
("SRP").
- Net debt of $110.0 million, up
slightly from net debt levels at the end of the first quarter of
$107.4 million.
- Perpetual had available liquidity at June 30, 2021 of $3.8
million, comprised of the $20
million credit facility borrowing limit, less current
borrowings and letters of credit of $15.2
million and $1.0 million,
respectively.
2021 OUTLOOK
On July 16, 2021, Perpetual
announced the creation of Rubellite Energy Inc., approximately
$73 million in equity financings, the
settlement of the majority of its second lien term loan (the
"Second Lien Loan Settlement") and new credit facilities (the
"Rubellite Transactions"). The management information circular (the
"Information Circular") with respect to the Plan of Arrangement
involving Rubellite has been filed on SEDAR at www.sedar.com. The
Special Meeting of Shareholders to consider the Plan of Arrangement
is scheduled to be held on August 31,
2021. Perpetual shareholders are encouraged to carefully
review the Information Circular as it contains important deadlines
and information with respect to the exercise of warrants to be
received by Perpetual shareholders in connection with the Plan of
Arrangement and for Perpetual shareholders to participate in the
equity financings.
Perpetual shareholders who have questions or require assistance
in voting for the Plan of Arrangement or in exercising their
Rubellite Warrants to subscribe for Rubellite Common Shares can
contact the strategic shareholder advisor and proxy solicitation
agent, Kingsdale Advisors, by telephone toll-free at 1-877-659-1819
(416-867-2272 for collect calls outside North America) or by
email at contactus@kingsdaleadvisors.com.
The Rubellite Transactions offer a full capital solution for
Perpetual by reducing Perpetual's net debt, normalizing the balance
sheet leverage ratios and surfacing incremental value from the
development of its assets. Perpetual believes that the Rubellite
Transactions will materially improve its liquidity, ensure its
ongoing solvency and significantly improve both its ability to
operate as a going concern and meet its obligations as they become
due, including the flexibility to make cash payments of second lien
and third lien interest which has recently been paid in-kind. At
the same time, completion of the Rubellite Transactions will
enhance Perpetual's ability to capture the inherent value in its
asset base by funding investment opportunities to grow and sustain
production and adjusted funds flow.
Perpetual will realize net cash proceeds from the Rubellite
Transactions of approximately $53.2
million which it will use to reduce net debt. The maturity
of the Company's credit facility has been extended to May 31, 2023, subject to the completion of the
Rubellite Transactions at which time Perpetual expects to be less
than 25% drawn on the new $17 million
credit facility. As part of the Second Lien Loan Settlement, the
maturity of a new second lien term loan of approximately
$2.7 million has been extended to
December 31, 2024. Net debt is
forecast to decline by 46% from $110
million at June 30, 2021 to
approximately $59 million at closing
of the Rubellite Transactions, inclusive of estimated capital
spending at East Edson and other
forecast corporate revenues and expenses during the third quarter
of 2021. Interest cost savings alone will improve Perpetual's
liquidity by approximately $4 million
annually. The general and administrative cost recoveries under the
management services agreement with Rubellite will further enhance
Perpetual's liquidity by approximately $2 to $3 million
annually.
Following completion of the Rubellite Transactions, Perpetual is
expected to have sufficient liquidity to invest capital in its
assets to grow production and adjusted funds flow and convert
proved and probable undeveloped reserves to proved developed
producing reserves which serves to support the Company's borrowing
capacity, increases the fair market value of Perpetual's assets,
and generally enhances the Company's ability to meet its
obligations as they become due. In addition, with the committed
extension to the first lien credit facility, Perpetual anticipates
it will be better positioned to enter into risk management
contracts to mitigate commodity price risk.
Operationally, Perpetual and Rubellite are both expected to have
active capital programs over the balance of the year. At
Perpetual's 50% working interest East
Edson property, the last well of the 8-well carried interest
commitment was spud on July 26, 2021,
and our joint venture partner Tourmaline expects to keep that rig
working with an additional six (3.0 net) wells drilled prior to
year-end. At Rubellite's Figure Lake property, the first of four
(4.0 net) wells was spud on July 21,
2021. This program is expected to be 100% financed by the
GORR financing announced as part of the Rubellite Transactions. An
additional eight Clearwater
multi-lateral wells are expected to be drilled in the Ukalta area
by Rubellite following the closing of the Rubellite Financings.
Subject to completion of the Rubellite Financings, Perpetual's
Board of Directors has approved exploration and development capital
spending for Perpetual's remaining assets for the second half of
2021 of $14 to $17 million to be funded from proceeds from the
Rubellite Transactions and adjusted funds flow. The majority of the
expenditures will be directed to the East
Edson property in West Central Alberta to participate for
Perpetual's 50% working interest share in the drilling, completion
and tie-in of the six (3.0 net) wells developing liquids-rich
conventional natural gas reserves in the Wilrich formation. The six
well drilling program will follow immediately upon the completion
of the drilling of the eighth and final carried interest well that
formed part of the consideration when the Company sold a 50%
working interest in the East Edson
property in April 2020. The Company
expects the final carried interest well to be completed and brought
onstream late in the third quarter. The remaining six wells are
expected to be extended reach horizontal wells and are forecast to
come onstream in two tranches midway through the fourth quarter and
late in the fourth quarter of 2021. The second half 2021 drilling
program is targeting to fill the West Wolf gas plant to maximize
natural gas and NGL sales through next winter. Activity in
Mannville in Eastern Alberta will be focused on waterflood
optimization and battery consolidation projects.
Total spending for the second half of 2021 on Rubellite's
Clearwater Assets is forecast to be $18 to $20 million.
The fully-funded four well Figure Lake drilling program is underway
and a $12 to $14 million drilling program at Ukalta is
expected to begin upon closing of the Rubellite Financings.
The table below summarizes anticipated capital spending and
drilling activities for Perpetual and Rubellite for the first and
second half of 2021.
2021 Exploration and Development Forecast Capital
Expenditures
|
H1
2021
($
millions)
|
# of
wells
(gross/net)
|
H2
2021
($
millions)
|
# of
wells
(gross/net)
|
West
Central(1)
|
0.7
|
2/1.0
|
$14 - $16
|
7/3.5
|
Eastern
Alberta(2)
|
0.9
|
1/0.5
|
0 - $1
|
1/0.5
|
Rubellite Clearwater
Assets
|
-
|
-
|
$18 - $20
|
12/12.0
|
Total(3)
|
1.6
|
3/1.5
|
$32 -
$37
|
20/16.0
|
(1)
|
Production from West
Central is primarily liquids-rich conventional natural gas. The two
(1.0 net) wells drilled in H1 2021 and the first well drilled in H2
2021 represent the final three wells of the eight well carried
interest drilling commitment.
|
(2)
|
Drilling in Eastern
Alberta was at Marten Hills, with one (0.5 net) well rig released
in H1 2021 and the second well rig released July 14, 2021. This
activity was funded by Perpetual and the wells form part of the
Rubellite Transactions. Production from Eastern Alberta is
primarily heavy crude oil.
|
(3)
|
Excludes budgeted
abandonment and reclamation spending of $2.4 million ($1.2 million
of which is expected to be funded by the SRP and recorded as other
income).
|
Perpetual continues its ESG focus, with total abandonment and
reclamation expenditures of up to $2.4
million planned in 2021, with up to $1.2 million to be funded through Alberta's SRP. The remaining $1.2 million will more than satisfy the Company's
area-based closure spending requirements of $1.0 million.
Financial and
Operating Highlights
|
Three months
ended
June
30
|
Six months
ended
June
30
|
(Cdn$ thousands,
except volume and per share amounts)
|
2021
|
2020
|
Change
|
2021
|
2020
|
Change
|
Financial
|
|
|
|
|
|
|
Oil and natural gas
revenue
|
13,226
|
3,722
|
255%
|
24,762
|
14,219
|
74%
|
Net income
(loss)
|
27,017
|
(8,831)
|
(406%)
|
24,311
|
(68,549)
|
(135%)
|
Per share –
basic(2)
|
0.43
|
(0.15)
|
(387%)
|
0.39
|
(1.13)
|
(135%)
|
Per share –
diluted(2)
|
0.38
|
(0.15)
|
(353%)
|
0.35
|
(1.13)
|
(131%)
|
Cash flow from (used
in) operating activities
|
2,854
|
(2,777)
|
(203%)
|
4,536
|
(5,891)
|
(177%)
|
Adjusted funds
flow(1)
|
2,302
|
(3,328)
|
(169%)
|
4,846
|
(6,929)
|
(170%)
|
Per share –
basic(2)
|
0.04
|
(0.05)
|
(180%)
|
0.08
|
(0.11)
|
(173%)
|
Per share
–diluted(2)
|
0.03
|
(0.05)
|
(160%)
|
0.07
|
(0.11)
|
(164%)
|
Total
assets
|
164,936
|
132,772
|
24%
|
164,936
|
132,772
|
24%
|
Revolving bank
debt
|
15,239
|
11,080
|
38%
|
15,239
|
11,080
|
38%
|
Term loan, principal
amount
|
48,719
|
45,000
|
8%
|
48,719
|
45,000
|
8%
|
Senior notes,
principal amount
|
36,403
|
33,580
|
8%
|
36,403
|
33,580
|
8%
|
Net working capital
deficiency(1)
|
9,629
|
8,873
|
9%
|
9,629
|
8,873
|
9%
|
Net
debt(1)
|
109,990
|
98,533
|
12%
|
109,990
|
98,533
|
12%
|
Capital
expenditures
|
1,554
|
(11)
|
(14,227%)
|
1,557
|
5,222
|
(70%)
|
Net proceeds on
acquisitions and dispositions
|
(46)
|
(34,661)
|
(100%)
|
423
|
(34,661)
|
(101%)
|
Net capital
expenditures
|
1,508
|
(34,672)
|
(104%)
|
1,980
|
(29,439)
|
(107%)
|
Common shares
outstanding (thousands)(3)
|
|
|
|
|
|
|
End of
period
|
62,591
|
60,894
|
3%
|
62,591
|
60,894
|
3%
|
Weighted average –
basic
|
62,574
|
60,776
|
3%
|
62,091
|
60,725
|
2%
|
Weighted average –
diluted
|
70,461
|
60,776
|
16%
|
69,324
|
60,725
|
14%
|
Operating
|
|
|
|
|
|
|
Daily average
production
|
|
|
|
|
|
|
Conventional natural
gas (MMcf/d)
|
22.2
|
16.9
|
31%
|
22.6
|
25.2
|
(10%)
|
Heavy crude oil
(bbl/d)
|
1,074
|
573
|
87%
|
1,085
|
946
|
15%
|
NGL
(bbl/d)
|
331
|
268
|
24%
|
313
|
437
|
(28%)
|
Total
(boe/d)(5)
|
5,099
|
3,662
|
39%
|
5,155
|
5,570
|
(7%)
|
Average
prices
|
|
|
|
|
|
|
Realized natural gas
price ($/Mcf)(4)
|
2.25
|
0.28
|
704%
|
2.25
|
0.86
|
162%
|
Realized oil price
($/bbl)(4)
|
55.75
|
67.56
|
(17%)
|
48.26
|
43.18
|
12%
|
Realized NGL price
($/bbl)(4)
|
55.48
|
17.35
|
220%
|
55.74
|
30.62
|
82%
|
Wells drilled –
gross (net)
|
|
|
|
|
|
|
Conventional natural
gas
|
–
(–)
|
– (–)
|
|
2
(1.0)
|
– (–)
|
|
Heavy crude
oil
|
1
(0.5)
|
– (–)
|
|
1
(0.5)
|
4 (4.0)
|
|
Total
|
1
(0.5)
|
– (–)
|
|
3
(1.5)
|
4 (4.0)
|
|
(1)
|
These are non-GAAP
measures. Please refer to "Non-GAAP Measures" below.
|
(2)
|
Based on weighted
average basic and diluted common shares outstanding for the
period.
|
(3)
|
common shares are net
of shares held in trust (June 30, 2021 – 0.5 million; June 30, 2020
– 0.6 million). See "Note 14 to the condensed interim consolidated
financial statements".
|
(4)
|
Realized natural gas,
oil, and NGL prices include physical forward sales contracts for
which delivery was made during the reporting period, along with
realized gains and losses on financial derivatives and foreign
exchange contracts.
|
(5)
|
Please refer to "Boe
volume conversions" below.
|
ADDITIONAL INFORMATION
About Perpetual
Perpetual is an oil and natural gas exploration, production and
marketing company headquartered in Calgary, Alberta. Perpetual owns a diversified
asset portfolio, including liquids-rich conventional natural gas
assets in the deep basin of West Central Alberta, heavy crude oil
and shallow conventional natural gas in Eastern Alberta, undeveloped bitumen leases in
Northern Alberta and prospective
undeveloped acreage in the emerging Clearwater play fairway through its wholly
owned subsidiary, Rubellite Energy Inc. Additional information on
Perpetual can be accessed at www.sedar.com or from the Company's
website at www.perpetualenergyinc.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
BOE VOLUME CONVERSIONS: Barrel of oil
equivalent ("boe") may be misleading, particularly if used in
isolation. In accordance with National Instrument 51-101, a
conversion ratio for conventional natural gas of 6 Mcf:1 bbl has
been used, which is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. In addition,
utilizing a conversion on a 6 Mcf:1 bbl basis may be misleading as
an indicator of value as the value ratio between conventional
natural gas and heavy crude oil, based on the current prices of
natural gas and crude oil, differ significantly from the energy
equivalency of 6 Mcf:1 bbl. A conversion ratio of 1 bbl of heavy
crude oil to 1 bbl of NGL has also been used throughout this news
release.
The following abbreviations used in this news release have
the meanings set forth below:
bbls
|
barrels
|
boe
|
barrels of oil
equivalent
|
Mcf
|
thousand cubic
feet
|
MMcf
|
million cubic
feet
|
Non-GAAP Measures
This news release contains the terms "adjusted funds flow",
"adjusted funds flow per share", "adjusted funds flow per boe",
"available liquidity", "cash costs", "net working capital
deficiency", "net debt", "net bank debt", "net debt to adjusted
funds flow ratio", "operating netback" and "realized revenue" which
do not have standardized meanings prescribed by GAAP. Management
believes that in addition to net income (loss) and net cash flows
from (used in) operating activities as defined by GAAP, these terms
are useful supplemental measures to evaluate operating performance.
Users are cautioned however that these measures should not be
construed as an alternative to net income (loss) or net cash flows
from operating activities determined in accordance with GAAP as an
indication of Perpetual's performance and may not be comparable
with the calculation of similar measurements by other
entities.
Adjusted funds flow: Adjusted funds flow is calculated based
on cash flows from (used in) operating activities, excluding
changes in non-cash working capital and expenditures on
decommissioning obligations since Perpetual believes the timing of
collection, payment or incurrence of these items is variable.
Expenditures on decommissioning obligations may vary from period to
period depending on capital programs and the maturity of the
Company's operating areas. Expenditures on decommissioning
obligations are managed through the capital budgeting process which
considers available adjusted funds flow. The Company has added back
non-cash oil and natural gas revenue in-kind, equal to retained
East Edson royalty obligation
payments taken in-kind, to present the equivalent amount of cash
revenue generated. The Company has also deducted payments of the
gas over bitumen royalty financing from adjusted funds flow to
present these payments net of gas over bitumen royalty credits
received. These payments are indexed to gas over bitumen royalty
credits and are recorded as a reduction to the Company's gas over
bitumen royalty financing obligation in accordance with IFRS.
Additionally, the Company has excluded payments of restructuring
costs associated with employee downsizing costs, which management
considers to not be related to cash flow from (used in) operating
activities. Management uses adjusted funds flow and adjusted funds
flow per boe as key measures to assess the ability of the Company
to generate the funds necessary to finance capital expenditures,
expenditures on decommissioning obligations, and meet its financial
obligations.
Adjusted funds flow per share is calculated using the
weighted average number of shares outstanding used in calculating
net income (loss) per share. Adjusted funds flow is not intended to
represent net cash flows from (used in) operating activities
calculated in accordance with IFRS.
Adjusted funds flow per boe is calculated as adjusted funds
flow divided by total production sold in the period.
Available Liquidity: Available Liquidity is defined as
Perpetual's reserve-based credit facility (the "Credit Facility")
borrowing limit (the "Borrowing Limit"), less borrowings and
letters of credit issued under the Credit Facility. Management uses
available liquidity to assess the ability of the Company to finance
capital expenditures and expenditures on decommissioning
obligations, and to meet its financial obligations.
Cash costs: Cash costs are comprised of royalties, production
and operating, transportation, general and administrative, and cash
finance expense. Cash costs per boe is calculated by dividing cash
costs by total production sold in the period. Management believes
that cash costs assist management and investors in assessing
Perpetual's efficiency and overall cost structure.
Realized revenue: Realized revenue is the sum of realized
natural gas revenue, realized oil revenue, and realized natural gas
liquids ("NGL") revenue which includes realized gains (losses) on
financial natural gas, crude oil, NGL, and foreign exchange
contracts. Realized revenue is used by management to calculate the
Company's net realized commodity prices, taking into account the
monthly settlements of financial crude oil and natural gas forward
sales, collars, basis differentials, and forward foreign exchange
sales. These contracts are put in place to protect Perpetual's
adjusted funds flow from potential volatility in commodity prices
and foreign exchange rates. Any related realized gains or losses
are considered part of the Company's realized price.
Operating netback: Operating netback is calculated by
deducting royalties, production and operating expenses, and
transportation costs from realized revenue. Operating netback is
also calculated on a per boe basis using production sold in the
period. Operating netback on a per boe basis can vary significantly
for each of the Company's operating areas. Perpetual considers
operating netback to be an important performance measure as it
demonstrates its profitability relative to current commodity
prices.
Net working capital deficiency: Net working capital
deficiency includes total current assets and current liabilities
excluding short-term derivative assets and liabilities related to
the Company's risk management activities, revolving bank debt,
second lien term loan (the "Term Loan"), current portion of royalty
obligations, current portion of lease liabilities, and current
portion of decommissioning obligations.
Net bank debt, net debt, and net debt to adjusted funds flow
ratio: Net bank debt is measured as current and long-term revolving
bank debt, including the net working capital deficiency. Net debt
includes the carrying value of net bank debt, the principal amount
of the Term Loan, and the principal amount of senior notes. Net
debt, net bank debt, and net debt to adjusted funds flow ratios are
used by management to assess the Company's overall debt position
and borrowing capacity. Net debt to adjusted funds flow ratios are
calculated on a trailing twelve-month basis.
Forward-Looking Information and Statements
Certain information and statements contained in this news
release including management's assessment of future plans and
operations, and including the information contained under the
headings "2021 Outlook" and "2021 Exploration and Development
Forecast Capital Expenditures" and the statements relating to the
timing for the upcoming special meeting and the completion of, and
the anticipated benefits to be derived from, the Rubellite
Transactions may constitute forward-looking information and
statements within the meaning of applicable securities laws. This
information and these statements relate to future events or to
future performance. All statements other than statements of
historical fact may be forward-looking information and statements.
The use of any of the words "anticipate", "continue", "estimate",
"expect", "may", "will", "project", "should", "believe", "outlook",
"guidance", "objective", "plans", "intends", "targeting", "could",
"potential", "strategy" and any similar expressions are intended to
identify forward-looking information and statements.
Various assumptions were used in drawing the conclusions or
making the forecasts and projections 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 Rubellite, the completion of the Rubellite
Transactions and the receipt of all required approvals in
connection therewith, 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 known and
unknown risks, including, without limitation, the ability to
continue to operate on a going concern basis if the Rubellite
Transactions are not completed in a timely manner or at all, the
impact of COVID-19 as further described below, 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. In
particular and without limitation of the foregoing, the outbreak of
COVID-19 has had a negative impact on global financial conditions.
Perpetual cannot accurately predict the impact that COVID-19 will
have on its ability to execute its business plans in response to
government public health efforts to contain COVID-19 and to obtain
financing or third parties' ability to meet their contractual
obligations with Perpetual including due to uncertainties relating
to the ultimate geographic spread of the virus, the severity of the
disease, the duration of the outbreak, and the length of travel and
quarantine restrictions imposed by governments of affected
jurisdictions; and the current and future demand for oil and gas.
In the event that the prevalence of COVID-19 increases (or fears in
respect of COVID-19 increase), governments may increase regulations
and restrictions regarding the flow of labour or products, travel
bans, and Perpetual's operations, service providers and customers,
and ability to advance its business plan or carry out its top
strategic priorities, could be adversely affected. In particular,
should any employees, consultants or other service providers of
Perpetual become infected with COVID-19 or similar pathogens, it
could have a material negative impact on Perpetual's operations,
prospects, business, financial condition and results of operations.
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 herein and under "Risk Factors" in Perpetual's Annual
Information Form and MD&A for the year ended December 31, 2020 and 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).
The forward-looking information and statements contained in
this news release reflect several material factors, expectations
and assumptions of the Company and Rubellite including, without
limitation, that each of Perpetual and Rubellite will conduct its
operations in a manner consistent with its expectations and, where
applicable, consistent with past practice; the general continuance
of current or, where applicable, assumed industry conditions; the
ability of Perpetual to obtain equipment, services, and supplies in
a timely manner to carry out its activities; the accuracy of the
estimates of Perpetual's reserve and resource volumes; certain
commodity price and other cost assumptions; the continued
availability of adequate debt and/or equity financing and adjusted
funds flow to fund the Company's capital and operating requirements
as needed; and the extent of Perpetual's liabilities. The Company
believes the material factors, expectations and assumptions
reflected in the forward-looking information and statements are
reasonable, but no assurance can be given that these factors,
expectations and assumptions will prove to be correct.
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.