On April 25, 2012, Perpetual sold a 90 percent interest in WGS LP for cash proceeds of $80.9 million. As part of the sale Perpetual continued to provide management and operational services to WGS LP for an annual fee.

The Company also retained an option, exercisable within one year of closing, to buy back from the purchaser up to a 30 percent additional ownership interest in WGS LP at the same price as the initial sale plus working capital and other adjustments, less any dividends paid, for a final ownership interest post any exercise of the buy-back option of up to 40 percent (WGS Call Option).

In the fourth quarter of 2012, WGS LP drilled and completed two new horizontal wells to increase the working gas capacity of the storage facility from 17 Bcf to 19 Bcf. In addition, delta pressuring of the storage reservoir has now been approved to further increase the working gas capacity of the facility to 22 Bcf.

Tags: Perpetual Energy Inc.