CALGARY, AB, Jan. 15, 2021 /CNW/ - (TSX: PMT) -
Perpetual Energy Inc. ("Perpetual" or the "Company") is pleased to
announce that the Alberta Court of
Queen's Bench (the "Court") has summarily dismissed the balance of
the Statement of Claim filed by PricewaterhouseCoopers Inc. LIT
("PwC"), in its capacity as trustee in bankruptcy of Sequoia
Resources Corp. ("Sequoia") against Perpetual, Perpetual Operating
Trust, Perpetual Operating Corp. (collectively the "Perpetual
Entities") and Susan Riddell Rose,
the Company's President and Chief Executive Officer ("Ms. Rose").
These claims relate to a transaction that involved the sale by
Perpetual of legacy shallow gas properties in October 2016 to an arm's length third party
purchaser after an extensive and lengthy marketing, due diligence
and negotiation process (the "Sequoia Disposition").
On February 25, 2020, Perpetual
filed an application to strike and summarily dismiss the claim
brought under Section 96 of the Bankruptcy and Insolvency
Act (the "BIA Claim"). The Court found that PwC could
not establish a necessary element of the BIA Claim as
Sequoia was not insolvent at the time of, nor rendered insolvent
by, the Sequoia Disposition. The Court therefore concluded there is
"no merit" to the BIA Claim and it was summarily
dismissed.
As previously disclosed, the Court has struck or summarily
dismissed all other claims by PwC against the Perpetual Entities
and Ms. Rose. PwC contested the previous decision. The appeal was
heard by the Court of Appeal of Alberta on December 10,
2020 and its decision is still pending.
The written reasons for the Court's decision on the BIA
Claim have been posted to the Company's website at
www.perpetualenergyinc.com or may be obtained by reviewing the
public court documents that pertain to Court action number
1801-10960, as filed with the Court, Calgary Judicial Centre.
About Perpetual
Perpetual is an oil and natural gas exploration, production and
marketing company headquartered in Calgary, Alberta. Perpetual has 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
including management's assessment of future plans and operations
may constitute forward-looking information or statements under
applicable securities laws. The forward looking information
includes, without limitation, statements made with respect to the
Company's ability to successfully defend itself with respect to
ongoing litigation and the potential course of actions that can be
taken in doing so. Various assumptions were used in drawing the
conclusions or making the forecasts and projections contained 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
risks, 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. 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 under "Risk Factors"
in Perpetual's Annual Information Form and MD&A for the year
ended December 31, 2019 and those
included 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). In addition, defence costs of
legal claims can be substantial, even with respect to claims that
have no merit and due to the inherent uncertainty of the litigation
process, the resolution of the legal proceeding to which the
Company has become subject could have a material effect on the
Company's financial position and results of operations. 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.