About Perpetual Energy

Perpetual Energy Inc. engages in the exploration, production, and marketing of oil and natural gas in Canada. Strategy The key elements of the company’s strategy are to grow value and impact of Clearwater play; and advance technology-driven diversifying new ventures. West Central Deep Basin In the West Central deep basin, core operations have been established in the greater Edson area where the company owns both vertical, multizone commingled wells and horizontal wells producing liquids-rich conventional natural gas primarily from the Wilrich formation. In 2020, the company sold 50% of its working interest in the Edson area. Major facilities include 50% of a non-operated one operated gas plant, including liquids recovery facilities, a compressor station, a 15.5 kilometers sales pipeline, and an extensive gathering system. Additionally, a 7.5% working interest in a second non-operated gas plant provides additional processing and egress options. East Edson In April 2020, the company completed the East Edson Transaction to sell 50% of its working interest in the East Edson property. The East Edson area is located west of Edmonton, Alberta in the Alberta Deep Basin and consists of 23,889 net acres (28% undeveloped). The company holds an average 48% working interest in 75 (36.3 net) producing natural gas wells and an average 50% working interest in two (1.0 net) producing oil wells. This area represented approximately 70% of the company's production for the year 2020. Production averaged 3,525 barrel of oil equivalent per day (boe/d) in 2020, including 19.0 million cubic feet per day (MMcf/d) of conventional natural gas and 352 barrels per day (bbl/d) of heavy crude oil and natural gas liquids. The primary development in the area is horizontal wells targeting the Wilrich formation. Secondary targets include liquids-rich conventional natural gas development potential in the Rock Creek, Gething, Fahler, Notikewin, Viking and Second White Specks formations. West Central Other Other non-core assets in the West Central Deep Basin area are comprised of 5,872 net acres (32% undeveloped) with an average 63% working interest in eight (5.0 net) non-producing oil and natural gas wells at year end 2020. Perpetual additionally holds various gross overriding royalties on 30,720 acres of land (49% undeveloped). Eastern Alberta Clearwater The company added a new heavy crude oil exploration opportunity in late 2018 in the Clearwater play, and has successfully grown land holdings in the play through 2020, exiting the year with 25,730 net acres (95% undeveloped) through a combination of earning through drilling and Crown and Freehold land acquisitions. The Ukalta area is the company’s main development area in the play with 18,632 net acres (93% undeveloped). The Clearwater wells contributed an average 386 bbl/d of heavy crude oil in 2020, representing 8% of the company's 2020 average production. The company has further identified additional scope to the play of up to 40 additional unbooked drilling locations within the same lower Clearwater sand target producing heavy crude oil in the six existing wells. Two additional unproven zones exist in the same land block where up to 54 additional unbooked drilling locations are recognized as prospective. The company has acquired 7,098 net acres (100% undeveloped) and entered into option agreements that provide access to an additional 21,542 net acres of Clearwater acreage at Figure Lake. Further contractual arrangements provide access to development lands at Marten Hills, as well as exploration acreage in northeastern Alberta. Mannville The company’s focus in Eastern Alberta has centered around heavy crude oil development in the Mannville area, containing 129,075 net acres (32% undeveloped). The company has an average 99% working interest in 123 gross (121.7 net) producing wells (64.0 net heavy crude oil wells and 57.7 net conventional natural gas wells) at year end 2020. The company operates this area, which produced 690 bbl/d of heavy crude oil and 2.5 MMcf/d of conventional natural gas in 2020, representing 22% of the company's 2020 average production. Bitumen The company held 98,400 net acres (98% undeveloped) of oil sands leases at December 31, 2020.