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Perpetual successfully completes the early redemption of its 8.75% senior notes due in 2018

CALGARY, April 17, 2017 /PRNewswire/ - (PMT.TO) – Perpetual Energy Inc. ("Perpetual" or the "Company") announces that it has successfully completed the previously announced early redemption of all of its outstanding 8.75% senior unsecured senior notes due March 15, 2018 (the "2018 Senior Notes"). Approximately $27.1 million principal amount of the 2018 Senior Notes were redeemed for cash and $0.5 million principal amount of the 2018 Senior Notes were redeemed for new 8.75% senior notes having an extended maturity date of January 23, 2022 in accordance with the terms of the notice of redemption.

In addition, in each case, holders of the 2018 Senior Notes will receive cash in the amount of $7.91 per $1,000 principal amount of 2018 Senior Notes, representing all accrued and unpaid interest on the 2018 Senior Notes to, but not including April 17, 2017.

The cash portion of the redemption was funded in part from the net proceeds of the Company's strategic financing initiatives completed on March 14, 2017 and cash on hand.

This early redemption and the issuance of additional notes with an extended maturity date of January 23, 2022 enhances the Company's capital structure and further supports the Company's ability to fund its growth-orientated 2017 capital program.     

Additional Information

The Company will release its 2017 first quarter financial and operating results on May 9, 2017. Please visit www.perpetualenergyinc.com for additional details.

About Perpetual

Perpetual Energy Inc. is a Canadian energy company with a spectrum of resource-style opportunities spanning liquids-rich natural gas in the Alberta deep basin, shallow gas, heavy oil and bitumen. Perpetual's shares are listed on the Toronto Stock Exchange under the symbol "PMT".

Forward-Looking Information

Certain information regarding Perpetual in this news release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management's analysis of historical trends, experience, current conditions, and expected future developments pertaining to Perpetual and the industry in which it operates as well as certain assumptions regarding the matters outlined above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Perpetual and described in the forward looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties, including without limitation those described under "Risk Factors" in Perpetual's Annual Information Form and MD&A for the year ended December 31, 2016 and those included in other reports on file with Canadian securities regulatory authorities which may be accessed through the SEDAR website (www.sedar.com) and at Perpetual's website (www.perpetualenergyinc.com). Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of Perpetual's management at the time the information is released and Perpetual disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities laws.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.