CALGARY, AB, Dec. 1, 2020 /CNW/ - (TSX: PMT)
– Perpetual Energy Inc. ("Perpetual" or the "Company")
announced today that the revolving credit period applicable to the
Company's credit facility has been extended to December 23, 2020 and the $20 million borrowing limit maintained. The
borrowing limit is scheduled to be redetermined and the revolving
credit period extended on or before December
23, 2020. The extension of the revolving credit period
provides additional time to finalize negotiations with its lenders
and for the Company to explore opportunities to enhance its
liquidity. If the revolving credit period is not extended beyond
December 23, 2020, the credit
facility will cease to revolve, and all outstanding balances will
be repayable.
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 ability to extend the Credit
Facility or to refinance its term debt on favorable terms, the
potential outcome of the Sequoia Litigation, 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.