Canada's Perpetual Energy Inc. will dispose of a large percentage of high-liability, mature shallow natural gas properties in east-central and northeast Alberta. The company entered into a definitive agreement for the disposition.

All of the shallow gas assets and liabilities in eastern Alberta will be included. The heavy oil and gas assets in the Mannville and Panny areas and other bitumen leases in northeast Alberta are not included, the company said in a Sept. 27 press release.

The shallow gas properties include about 35.5 million cubic feet equivalent per day (MMcfe/d) of current production and an estimated 83.8 Bcfe of proved plus probable gas reserves as of Dec. 31, 2015, adjusted for production to the effective date of Oct. 1, 2016).

Also, 353,777 net acres of undeveloped lands not assigned reserves at year-end 2015 are included in the transaction, which is expected to close by Oct. 1.

Macquarie Capital Markets Canada Ltd. is Perpetual Energy’s financial adviser.

An effective deferred purchase price component is included in the transaction. Through it, Perpetual will continue benefiting from the shallow gas properties for about two years—if gas pricing recovers--through marketing arrangements that will be settled monthly by a third-party marketing company through an adjustment in the price paid to Perpetual for future physical gas sales.

The disposition of assets will positively impact the flow of funds, the company said.

The company also said that it refinanced its financial arrangement secured by 1 million of its 1.85 million shares of Tourmaline Oil Corp. that mature in November. The maturity is now extended to March 15, 2017, and the number of shares pledged as collateral has been reduced.

Perpetual Energy is also currently searching for a permanent replacement for the position of vice president of finance and CFO. In the interim, Bill Hahn, the financial controller and manager of corporate finance, will become the acting vice president of finance and CFO. Cameron Sebastian is departing, the company said.