CALGARY, Dec. 18, 2012 /PRNewswire/ – (TSX:PMT) – Perpetual Energy Inc. (“Perpetual” or the “Corporation”) is pleased to
announce further positive results from the Corporation’s ongoing asset
disposition program. Perpetual has entered into a definitive purchase
and sale agreement, along with its partner Tourmaline Oil Corp., to
jointly divest its Elmworth, Alberta property for gross proceeds of
$155 million, $77.5 million net to Perpetual, subject to certain
closing adjustments and transaction costs. This transaction is
currently expected to close on or prior to March 1, 2013.

The Elmworth property consists of 3 gross (1.5 net) non-producing
horizontal Montney gas wells at Elmworth, one vertical well at Wapiti,
and undeveloped land, including 20,256 net acres of Montney rights.
This disposition will have no negative effect on Perpetual’s 2013
projected production or cash flow, and interest expense will be reduced
by approximately $4 million on an annual basis, assuming that the
proceeds permanently reduce bank debt.

Due to the long development timeline and significant capital required to
build sour gas infrastructure into the Elmworth area to establish
cost-efficient production, Perpetual has chosen to build the
liquids-rich gas component of its diversified portfolio around the
robust inventory of Wilrich horizontal development opportunities in the
greater Edson area.

Proceeds from this disposition will initially be applied to reduce
outstanding bank debt and, along with the interest savings on reduced
bank debt, will significantly bolster Perpetual’s financial flexibility
to continue to deploy capital to its chosen key commodity-diversifying
growth strategies in Mannville heavy oil and Edson liquids-rich Wilrich
gas development. It will also allow Perpetual to continue to advance
the Corporation’s portfolio of medium and long term value and growth
plays with risk-managed investment. In addition, this transaction
provides added optionality for managing the Corporation’s long term
debt obligations.

Current drawings on the Corporation’s $130 million credit facility are
approximately $85 million. Proforma for the announced dispositions and
the Corporation’s planned $40 million first quarter 2013 capital
spending program, and assuming the current forward markets for
commodity prices, Perpetual expects to exit the first quarter of 2013
drawn approximately $35 to $40 million on its credit facility.

Forward-Looking Information

Certain information regarding Perpetual in this news release including
management’s assessment of future plans and operations may constitute
forward-looking statements under applicable securities laws. The
forward-looking information includes, without limitation, statements
regarding prospective drilling activities; forecast debt levels and
credit facility draws; forecast and realized commodity prices; expected
funding and timing of capital expenditures; projected use of funds
flow; planned drilling and development and the results thereof;
expected dispositions and the use of proceeds therefrom; effects of
dispositions on production, cash flow, debt levels, liquidity and
financial flexibility; commodity prices; and estimated interest
expense. 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 press 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 management’s discussion and analysis for the
year ended December 31, 2011 and those included in 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 laws.

SOURCE Perpetual Energy Inc.