Perpetual Energy Inc. Sells Shut-In Gas Reserves for CND $40 mm

By Perpetual Energy Inc., PRNE
Thursday, November 18, 2010

No Material Impact On Funds Flow Anticipated

CALGARY, Canada, November 19, 2010 - Perpetual Energy Inc. ("Perpetual" or the "Corporation") is pleased to
announce it has, through a series of three transactions, closed the
disposition of certain of its assets affected by the gas over bitumen shut-in
issue in the Legend, Liege, Ells, Leismer and Corner areas of northeast
Alberta and a minor undeveloped acreage position in west central Alberta, for
combined gross proceeds of CND $40.0 million (the "Dispositions"). As part of
the Disposition agreements, Perpetual will continue to receive the gas over
bitumen financial solution royalty reductions related to the sold wells,
although effective ownership of the natural gas reserves will be transferred
to the buyers. As a result, Perpetual expects there will be no material
impact on future funds flow as a result of the Dispositions.

Giving consideration to the Dispositions, Perpetual's current net bank
debt is estimated to be CND $190 million. Incorporating previously announced
fourth quarter 2010 capital plans and estimated funds flow for the remainder
of 2010, Perpetual expects to exit 2010 with ending net bank debt of
approximately CND $200 million.

The Dispositions involve shut-in gas reserves in the Ells, Leismer and
Corner areas which were the subject of an Alberta Energy Resources
Conservation Board ("ERCB" or the "Board") shut-in order in 2004 as well as
shut-in gas reserves in the Legend area which were subject to an ERCB interim
shut-in order in October 2009. In addition, the Dispositions also involve
reserves with gas wells pending review for shut-in in the Liege area of
northeast Alberta. The buyers are also acquiring all of Perpetual's interest
in all of the facilities associated with the reserves at Legend and Liege,
including roads, camps, airstrips, pipelines and all other infrastructure. At
year end 2009, Perpetual's independent reserve evaluation engineers, McDaniel
and Associates Consultants Ltd., estimated the natural gas reserves related
to the Dispositions, adjusted for 2010 production estimated to the closing
dates, at 33.4 Bcf.

On October 4, 2004, the Government of Alberta enacted amendments to the
royalty regulation with respect to natural gas which provide a mechanism
whereby the Government may prescribe a reduction in the royalty calculated
through the Crown royalty system for operators of gas wells which have been
denied the right to produce by the ERCB as a result of bitumen conservation
decisions. Such royalty reduction was prescribed for certain of the wells in
the Ells, Leismer, Corner and Legend areas in 2004 and 2009 repsectively,
concurrent with the shut-in decisions. Gas over bitumen royalty adjustments
are not paid to Perpetual in cash, but are a deduction from the Corporation's
monthly natural gas royalty invoices. Perpetual currently receives a royalty
reduction through the gas over bitumen financial solution with respect to gas
shut-in at Leismer, Corner, Ells and Legend calculated based on a current
deemed production of 9.7 MMcf/d.

At the request of bitumen rights owners in the vicinity of the Liege
areas, an interim ERCB hearing is in process to consider the merits of
shut-in requests in the Liege area. The ERCB is expected to determine whether
to issue a second interim shut-in order for the Liege field in February 2011,
and assuming the Liege production will be subject to such an order, the
Corporation expects to begin to receive additional financial solution for
approximately 5.7 MMcf/d of additional gas over bitumen deemed production in
accordance with the royalty regulations at that time.

In combination, Perpetual anticipates it will receive initial royalty
reductions calculated on 15.4 MMcf/d of deemed production. Giving
consideration to the gas over bitumen financial solution, the Dispositions
are expected to have no material impact on the value of Perpetual's
anticipated future funds flow. As per the terms of the royalty regulations,
the deemed production used to calculate the royalty reduction will decline at
10 percent per annum for the remainder of the initial ten year term from the
date of shut-in.

Giving effect to the Dispositions, Perpetual has 27.9 Bcf of additional
shut-in gas over bitumen reserves remaining in its asset base. The Company
continues to monitor technical solutions to bring this shut-in gas back on
production and is committed to work with bitumen owners to align interests to
maximize the recovery of both the bitumen and gas resources within the region
of shut-in gas pools.

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. The forward
looking information includes, without limitation, statements regarding
estimated production, commodity prices, funds flow, and reserves; estimated
impact of the Disposition on funds flow; estimated present and year-end bank
debt; shut-in status of certain wells; and expected additional royalty
reductions and their basis. 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 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 Paramount Energy Trust's MD&A for the year ended December 31,
and those included in reports on file with Canadian securities
regulatory authorities which may be accessed through the SEDAR website
( and at Perpetual's website (
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 law.

Non-GAAP Measures

This news release contains financial measures that may not be calculated
in accordance with generally accepted accounting principles in Canada
("GAAP"). Readers are referred to advisories and further discussion on
non-GAAP measures contained in the "Significant Accounting Policies and
Non-GAAP Measures" section of Paramount Energy Trust's MD&A for the year
ended December 31, 2009.

Mcf equivalent (Mcfe) may be misleading, particularly if used in
isolation. In accordance with National Instrument 51-101 ("NI 51-101"), an
Mcfe conversion ratio for oil of 1 Bbl: 6 Mcf has been used, which is based
on an energy equivalency conversion method primarily applicable at the burner
tip and does not necessarily represent a value equivalency at the wellhead.

Perpetual Energy Inc. is a natural gas-focused Canadian energy company.
Perpetual's shares and Convertible Debentures are listed on the Toronto Stock
Exchange under the symbols "PMT", "PMT.DB.C", "PMT.DB.D" and "PMT.DB.E".
Further information with respect to Perpetual can be found at its website at

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

    For further information:

    Perpetual Energy Inc.
    Suite 3200
    605 - 5 Avenue SW Calgary
    Canada T2P 3H5

    Telephone: +1-403-269-4400
    Fax:       +1-403-269-4444

    Susan L. Riddell Rose
    President and Chief Executive Officer

    Cameron R. Sebastian
    Vice President, Finance and Chief Financial Officer

    Sue M. Showers
    Investor Relations and Communications Advisor

For further information: Perpetual Energy Inc., Suite 3200, 605 - 5 Avenue SW Calgary, Alberta, Canada T2P 3H5; Telephone: +1-403-269-4400, Fax: +1-403-269-4444, Email: info at; Susan L. Riddell Rose, President and Chief Executive Officer; Cameron R. Sebastian, Vice President, Finance and Chief Financial Officer; Sue M. Showers, Investor Relations and Communications Advisor

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