CALGARY, AB, Aug. 10, 2020 /CNW/ - (TSX: PMT)
– Perpetual Energy Inc. ("Perpetual" or the "Company")
announced today the extension of the revolving credit period
applicable to the Company's existing $20
million credit facility to October
30, 2020. The credit facility continues to be available
on a revolving basis until that date. The date for the
redetermination of the borrowing limit has also been extended until
October 30, 2020. The extension of
the borrowing limit redetermination provides additional time to
finalize negotiations with its lenders and for the Company to
explore opportunities to enhance its liquidity. If the revolving
period applicable to the credit facility is not extended beyond
October 30, 2020, the credit facility
will cease to revolve, and all outstanding balances will be
repayable on November 30, 2020.
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 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.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
Forward-Looking Information
Certain information regarding Perpetual in this news release
may constitute forward-looking information or statements under
applicable securities laws. The forward looking information
includes, without limitation, the potential outcome of the Sequoia
Litigation, the ability to extend the Credit Facility or to
refinance its term debt on favorable terms, the use of cash
proceeds from the East Edson Transaction including the repayment of
bank debt and the funding of profitable investment in the
Clearwater play in Eastern Alberta, the future recovery and
stabilization of oil prices, any benefits to be derived from the
East Edson Transaction including that the eight-well capital carry
at East Edson will restore gross
production levels to more fully utilize the existing processing
capacity, improve operating netbacks and result in improved capital
spending efficiency, the nature of the capital spending in 2020 at
the 50% owned East Edson property,
the deferral and suspension of oil capital expenditures in 2020
including heavy oil production and the anticipated timing of an oil
price recovery and production restart, anticipated average 2020
sales volumes, the ability to minimize operating and corporate
costs, abandonment and reclamation expenditure forecasts for 2020
and ability to decrease fixed operating costs associated with
non-producing wells, anticipated amounts and allocation of capital
spending; statements regarding estimated production and timing
thereof; forecast average production; completions and development
activities; prospective oil and natural gas liquids production
capability; projected realized natural gas prices and adjusted
funds flow; estimated decommissioning obligations; commodity prices
and foreign exchange rates; and commodity price management.
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 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 impact of the ongoing oil price
war between Russia and
Saudi Arabia and 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 recent outbreak of COVID-19 has
had a negative impact on global financial conditions. Perpetual
cannot accurately predict the impact 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 continues to increase
(or fears in respect of COVID-19 continue to increase), governments
may increase regulations and restrictions regarding the flow of
labour or products, and 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,
2019 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). 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.