Perpetual Energy Inc. announced that pursuant to the terms of the second lien debt repayment agreement with Alberta Investment Management Corporation, Perpetual has settled its $45 million second lien term loan principal plus outstanding interest with the payment of approximately $38.5 million in cash, delivery of 680,485 Rubellite Shares and on October 5, 2021 will enter into a new second lien term loan of $2.7 million (the "New Second Lien Term Loan"). The New Second Lien Term Loan bears interest at 8.1% annually, which Perpetual may elect to pay-in-kind, and will mature on December 31, 2024. Perpetual has the ability to repay any or all of the New Second Lien Term Loan at any time without penalty. Perpetual is also committed to pay up to $4.5 million in contingent payments in the event that Perpetual's annual average realized crude oil and natural gas prices exceed certain thresholds over the three year period ended December 31, 2023. On July 15, 2021, Perpetual entered into an agreement with its syndicate of lenders to extend its revolving bank debt facility ("First Lien Credit Facility") upon closing of the Rubellite Financings. The First Lien Credit Facility established a borrowing limit of $17 million, with an initial term to November 30, 2022 unless the revolving period is extended for a further six months subject to approval by the syndicate. If not extended on or before November 30, 2022, all outstanding advances will be repayable on May 31, 2023. The next Borrowing Limit redetermination is scheduled on or before November 30, 2021. Including cash proceeds received from the sale of the Clearwater assets, Perpetual expects to be less than 25% drawn on the $17 million First Lien Credit Facility. Furthermore, the First Lien Credit Facility provides Perpetual with an enhanced ability to enter into risk management contracts to mitigate commodity price risk as appropriate. Approximately $53.6 million in funds from the Rubellite Financings will on October 5, 2021 repay promissory notes owed to Perpetual in connection with Rubellite's acquisition of its Clearwater assets from Perpetual. Perpetual previously received additional non-cash consideration in the form of a five-year option to purchase 4.0 million Rubellite Shares at $3.00 per share (the "Rubellite Share Purchase Options"), providing an opportunity for Perpetual to remain exposed to potential value appreciation of the Clearwater assets sold to Rubellite.