Perpetual Energy Inc. announced that it has exchanged approximately $8.4 million aggregate principal amount of its 8.75% senior notes due March 15, 2018 (the "2018 Senior Notes") and approximately $9.0 million aggregate principal amount of its 8.75% senior notes due July 23, 2019 (the "2019 Senior Notes" and together with the 2018 Senior Notes, the "Existing Senior Notes") for new 8.75% senior notes having an extended maturity date of January 23, 2022 pursuant to the Company's previously announced note exchange proposal. Holders of Existing Senior Notes who accepted and validly tendered their Existing Senior Notes to the Note Exchange Proposal will receive $1,000 principal amount of Exchange Senior Notes for each $1,000 principal amount of Existing Senior Notes tendered to the Note Exchange Proposal. The Exchange Senior Notes contain the same terms as the Existing Senior Notes other than now having: (i) an extended maturity date to January 23, 2022 (being five years from the expiry date of the Note Exchange Proposal); (ii) an increased annual interest rate for the first year, and only for the first year, that the Exchange Senior Notes are outstanding of 9.75% instead of 8.75%, which is equal to the equivalent of $10 per $1,000 principal amount of Existing Senior Notes validly tendered under the Note Exchange Proposal; and (iii) consequential changes to the interest payment dates and optional redemption provisions to give effect to the extended maturity date and increased annual interest rate for the first year that the Exchange Senior Notes are outstanding. In addition, holders of Existing Senior Notes who accepted and validly tendered their Existing Senior Notes to the Note Exchange Proposal will receive accrued and unpaid interest outstanding up to, but excluding, January 23, 2017. In particular, holders of 2018 Senior Notes who tendered their 2018 Senior Notes to the Note Exchange Proposal will receive an interest payment of $31.16 per $1,000 principal amount of 2018 Senior Notes in cash. All holders of 2019 Senior Notes will receive their semi-annual interest payment of $43.75 per $1,000 principal amount of 2019 Senior Notes in cash regardless of whether or not they tendered their 2019 Senior Notes to the Note Exchange Proposal. In each case the payments represent all accrued and unpaid interest outstanding up to, but excluding, the expiry date of January 23, 2017.