Perpetual Energy to sell noncore heavy oil properties in eastern Alberta

Perpetual Energy Inc., Calgary, reported it will sell several heavy oil properties it considers to be noncore in eastern Alberta for $21.6 million. A deposit of $3.24 million has been paid to Perpetual, and closing is expected on or before Nov. 7.

The disposition includes an estimated 870,000 boe of heavy oil reserves and 4,026 net acres of undeveloped Mannville heavy oil rights. Production from the divestment package in the fourth quarter is expected to average 400-415 boe/d of primarily heavy oil.

Proceeds from the sale will initially establish a bank and working capital surplus. The company’s 2014 strategic priority is to reduce debt and manage downside risk, it said.