Ms. Susan Riddell Rose reports

PERPETUAL ENERGY INC. CLOSES PREVIOUSLY ANNOUNCED ASSET DISPOSITION

Perpetual Energy Inc. has closed its previously announced asset disposition of certain assets at Mannville in Eastern Alberta to Canadian private operator Pointbreak Resources for gross proceeds of $35.8-million in cash, prior to customary purchase price adjustments (the Mannville transaction) with a Sept. 1, 2023, effective date. The properties included in the Mannville transaction comprise substantially all of the company's production in Eastern Alberta which averaged 1,431 boe/d (barrels of oil equivalent per day) (66 per cent conventional heavy oil) during the third quarter of 2023.

Proceeds from the Mannville transaction will be used to reduce bank debt and manage future maturities on the company's term loan and senior notes and other obligations as they come due, as well as provide Perpetual with the liquidity to invest in its remaining assets at East Edson and pursue other new venture opportunities.

About Perpetual Energy Inc.

Perpetual is an oil and natural gas exploration, production and marketing company headquartered in Calgary, Alta. Perpetual owns a diversified asset portfolio, including liquids-rich conventional natural gas assets in the deep basin of west-central Alberta, and undeveloped bitumen leases in Northern Alberta.