Perpetual Energy Inc. has successfully closed the previously announced East Edson Joint Venture (the "East Edson JV"). Proceeds to Perpetual include $50 million for the sale of a 50 percent gross overriding royalty on existing producing assets (the "Producing Royalty") and an additional $70 million to fund Wilrich development activities to earn a second royalty (the "Drilling Royalty").

In combination, in exchange for the total acquisition and funding commitment of $120 million, the Drilling and Producing Royalties entitle the joint venture partner to receive on a priority basis 5.6 MMcf/d of natural gas from the East Edson Property plus oil and associated natural gas liquids (NGL) from July 1, 2014 to December 31, 2022 and declining thereafter at 10 percent per year until the Drilling Royalty and the Producing Royalty terminate on December 31, 2034.

Tags: Perpetual Energy Inc.