June 14, 2011

Perpetual Energy Inc. CAPP Symposium June 14, 2011

Forward Looking Statements

Cautionary Statement Regarding Forward-Looking Information

This presentation contains forward-looking statements relating to Perpetuals operations that are based on managements current expectations, estimates and projections about its operations. Words and phrases such as anticipates, expects, believes, estimates, projected, future, goals, forecast, plan, opportunities, upside. will, impact, target, 2010 through 2014 and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required. Perpetual undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are: inaccuracies in the estimated timing and amount of future production of natural gas and oil due to numerous factors including permit delays or restrictions, weather, equipment failures, delays or lack of availability, unexpected subsurface or geologic conditions, lack of capital, increases in the costs of rented or contracted equipment, increases in labor costs, volumes of oil or gas greater or lesser than anticipated, and changes in applicable regulations and laws; unexpected problems with wells or other equipment, unexpected changes in operating costs and other expenses, including utilities, labor, transportation, well and oil field services, taxes, permit fees, regulatory compliance and other costs of operation; further decreases in natural gas and oil prices, including price discounts and basis differentials; difficulties in accurately estimating the discovery, volumes, development potential and replacement of natural gas and oil reserves; the impact of the current weak economic conditions on our business operations, financial condition and ability to raise capital; variances in cash flow, liquidity and financial position; a significant reduction in our bank credit facilitys borrowing base; availability of funds from the capital markets and under our back credit facility; our level of indebtedness; the ability of financial counterparties to perform or fulfill their obligations under existing agreements; a further write down of our asset carrying values and oil and gas property impairment; the discovery of previously unknown environmental issues; changes in our business and financial strategy; inaccuracies in estimating the amount, nature and timing of capital expenditures, including future development costs; the inability to predict the availability and terms of capital; issues with marketing of natural gas and oil including lack of access of markets, changes in pipeline and transportation tariffs and costs, increases in minimum sales quality standards for oil or natural gas, changes in the supply-demand status of gas or oil in a given market area, and the introduction of increased quantities of natural gas or oil into a given area due to new discoveries or new delivery systems; the impact of weather limiting or damaging operations and the occurrence of natural disasters such as fires, floods, hurricanes, earthquakes and other catastrophic events and natural disasters; the high-risk nature of drilling and producing natural gas and oil, including blow-outs, surface caterings, fires, explosions; the competitiveness of alternate energy sources or product substitutes; technological developments; changes in governmental regulation of the natural gas and oil industry potentially leading to increased costs and limited development opportunities; changes in governmental regulation of derivatives; developments in natural gas-producing and oil-producing countries potentially having significant effects on the price of gas and oil; the effects of changed accounting rules under generally accepted accounting principles promulgated by rule-setting bodies; the transition to IFRS and its impact on our financial results; cash dividends or distributions, and the funding and tax treatment thereof; the amount of future abandonment and reclamation costs, asset retirement and environmental obligations; expected realization of gas over bitumen royalty adjustments; inability to execute strategic plans, expectations and objectives for future operations; and the factors set forth under the heading Risk Factors incorporated by reference from our Annual Reports, our Annual Informational Forms, our Quarterly Reports and our other filings on SEDAR. Unpredictable or unknown factors not discussed herein also could have material adverse effects on forward-looking statements.

June 14, 2011

Market Profile

Common shares outstanding Management ownership Share price (5 day weighted average)

148.3 million 21% $ 3.60

Market capitalization Convertible debentures Senior unsecured notes Net bank debt Enterprise value

$ 534 million $ 235 million $ 150 million $ 90 million $ 1.0 billion

Current dividend (monthly) Current annualized yield

$ 0.015 per share 5.0 %

30 day weighted average trading volume

500,000 shares

Corporate Conversion from Paramount Energy Trust completed July 1, 2010

Entrepreneurial Approach to Value Creation

New and inherent opportunities within our asset mix where emerging technologies will create value in our long term future

Oil and gas resource plays, conventional heavy oil, in-situ bitumen extraction and entrepreneurial ideas such as natural gas storage to fuel growth and diversify our funds flow

Solid performing conventional shallow gas assets which ground our funds flow and provide capital for growth

= Shareholder Value
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June 14, 2011

Sustainable Growth Plus Income Strategy

DIVIDENDS:
Target Sustainability

BASE CASH FLOW GENERATORS:

Target to Minimize Production Declines and Maximize Free Cash Flow

DIVERSIFYING GROWTH STRATEGIES:

Target Value, Growth And Cash Flow Diversification

Targeting a sustainable cash flow distributing plus growth model

Assets and Operations

June 14, 2011

Assets and Operations

Base Cash Flow Generators Diversifying Growth Strategies Option Value
Conventional Shallow Gas

Conventional Heavy Oil Deep Basin Oil and Liquids-Rich Gas Wilrich, Montney, Cardium Viking and Colorado Shallow Shale Gas NE Alberta In-Situ Bitumen Extraction Warwick Gas Storage

Gas over Bitumen Technical Solutions

NE Alberta Bitumen in Carbonates

Tight Oil and Gas Exploration TriOil Resourcs (4%)

Actual & Deemed Production (June 2011) Natural Gas (92.6%) NGLs and Oil (7.4%) Gas over Bitumen Deemed Production(1) P+P Reserves(2) Reserve to Production Ratio (P+P) (RLI) Contingent Resource - Elmworth Montney(2) Contingent Resource Panny Bitumen(3)

30,400 Boe/d 141 MMcf/d 1,934 bbl/d 30 MMcf/d 488 Bcfe 8.9 Years 145 Bcfe 108 MMbbl

(1) Cash Flow = 0.5 x [(deemed production volume x 0.80) x (ARP - $0.3791/GJ)]; (2) As evaluated by McDaniel and GLJ at year end 2010 (3) As evaluated by McDaniel at May 2011

Base Assets Conventional Shallow Gas

East Central and Northeast Alberta Cretaceous and Devonian sweet shallow gas 75% of production base Base declines < 20% Multiple stacked zones and play types 1,000+ uphole recompletions awaiting depletion of producing zones

Belly River

Viking

Low cost production and reserves adds (<$10,000/BOE/d; <$1.00/Mcf) Typically ~150 recompletions per year Historical drilling success > 90% Seismic definition and step out of infrastructure drive prospects to drill ready Multi-zone drills generally convert to reserves in 1 or 2 zones with additional zones captured as uphole completions in prospect inventory ~10 -20 new drills per year - best return and strategic Average well $0.4 MM D C & E Risked IP 300 Mcf/d; EUR 0.3 Bcf (<$25,000/BOE/d; <$1.77/Mcf)

Grand Rapids

500+ new drill prospects

Lower Mannville

Pre Cretaceous Unconformity

Extensive inventory to minimize production declines at industry-leading capital efficiencies

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June 14, 2011

Diversifying Growth Strategies

Diversifying Growth Strategies Deep Basin Liquids-Rich Gas

ROSEVEAR
Edson Deep Cut Plant 375 MMcf/d capacity South Rosevear Shallow Cut Plant (15% WI) 75 MMcf/d capacity

Current Production
(excluding Cardium Oil) 7,500 boe/d 75/25 gas to NGLs

Multi-Zone Area

Targeting Viking, Bluesky, Wilrich, Lower Mannville, Fernie Sand & Rock Creek 20 - 40 bbls/MMcf NGLs

Edson Shallow Cut Plant (30% WI) 30 MMcf/d capacity

Q1 2011

Liquids-Rich Gas

3.5 net Wilrich wells 1.0 net vertical well

Extensive facility network

EDSON
Wolf South Deep Cut Plant 66 MMcf/d capacity

CARROT CREEK

Interest in 3 gas processing facilities Excess third party capacity

Extensive prospect inventory

30 Recompletions 40 Multi-zone vertical drills

Average depth = 2,450m ~$1.6 MM D C & E Risked IP 0.8 1 MMcf/d Risked EUR 0.7 Bcfe ~$3.5 MM D C & E Risked IP 2 3 MMcf/d Risked EUR 1.6-2.5 Bcfe ~$5 MM D C & E Risked IP 4 MMcf/d Risked EUR 3.7 Bcfe

Perpetual Lands Perpetual WI Facilities Perpetual Pipeline Pipeline to Wolf South Alliance Pipeline Other Facilities Other Pipelines Rock Creek HZ loc Notikewin HZ loc Wilrich HZ loc

16-10 Compressor (100% WI) 30 MMcf/d capacity

20 horizontal locations (excl. Wilrich)

PEMBINA

WEST PEMBINA

Pembina Oil Battery (78% WI) 6 mi 1,200 BOE/d capacity

37 Wilrich horizontal locations

Establishing operational excellence in vertical and horizontal development

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June 14, 2011

West Central Alberta Resource Projects Edson Wilrich Liquids-Rich Gas

R16 R15W5
To South Rosevear Plant (15% WI)

T52
To Edson Deep Cut Plant 36 bbl/MMcf NGLs (50% condensate) 13-12-52-16W5 HZ IP >7.0 MMcf/d

13-26-52-15W5 HZ IP >7.0 MMcf/d

16-10 Compressor Expansion to increase capacity to 30 MMcf/d

Perpetual Wilrich Rights Perpetual Lands Vertical Recompletions Horizontal drills Future locations

2011 CAPEX Program

5 Horizontal wells (4.5 net), 3 Recompletions (3.0 net) $5 million on Facilities Expansions ($3.5 million net)
13-5-52-15W5 HZ IP >4.25 MMcf/d On Prod Aug. 20 2010 12-5 and 15-5 HZ IP > 4.25MMcf/d

1-4 & 2-4 52-15W5 HZ IP >4.25 MMcf/d

Future Development Locations

42 gross (~26 net) and growing

Wilrich Value Potential

Economics per Drilling Location Capital (D,C & T) NPV @ 10 % $4.9 MM $2.7 MM BT ($3.5 MM BT) (excluding drilling credits) 39% BT (50% BT) $10.70/ BOE <$12,000 BOE/d
Pricing Operating Costs Well Depth Type Curve

Assumptions
$4/Mcf; $75/bbl WTI = $53.20/bbl NGLs ($4/Mcf; $95/bbl WTI=$66.30/bbl NGLs) $6.45/BOE 3,900 M HZ; 2,400 TVD IP 3.5 MMcf/d, One year exit rate 1.85 MMcf/d 36 bbls/MMcf NGLs/condensate 3 Bcfe per well 5% new well royalty rate for 500 MMscf; no drilling credits included Unrisked

ROR F&D Capital Efficiency

Reserves Royalties Risk

Flare while drilling 13-5 Wilrich HZ

Preparing to Frac 13-5 Wilrich HZ

Pad completion in section 5

Strong operating netbacks - $5.80/Mcfe revenue on AECO gas price of $3.66/Mcf

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June 14, 2011

West Central Alberta Resource Projects Cardium Tight Oil

NOTE: Only Cardium producing wells shown

Light oil in tight sand halo ~400 boe/d Cardium production 24 net sections of undeveloped Cardium rights HZ well costs: $3MM DC&T Type curve:

CARROT CREEK

IP 150 boe/d; Reserves 150 Mboe

EDSON

Q1 2011 Section 16-52-13W5 development

PEMBINA

21 gross (12 net) sections of undeveloped Cardium rights sold for $14 MM in May 2011

4 gross (3.0 net) HZ wells

Perpetual Cardium Lands Producing Cardium Wells Perpetual 2011 Cardium HZ Cardium HZ Locations/License
6 mi

Captured $14 million in value from higher risk silty facies with May 2011 disposition
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West Central Alberta Resource Projects Elmworth Montney Liquids-Rich Gas

92 Gross Sections of Montney Exposure

50/50 Joint Venture with Tourmaline 3 well earning commitment by Tourmaline fulfilled 32 Bcfe P+P reserves booked (7 sections) 145 Bcfe best estimate contingent resource (Assuming 35% recovery & 20 bbl/MMcf NGLs) 34 gross (17 net) sections not yet evaluated (SW Block) 9 HZ and 4 Vertical wells on production 8 addtl HZ wells rig released 4 new HZ wells licensed IP (1 month) of offset HZ wells 3 to 6 MMcf/d 3 Perpetual-interest wells tested up to 7.5 MMcf/d/well Recombined free liquids and NGLs ~ 20 bbl/MMcf condensate plus 25 to 45 bbl/MMcf NGLs (processing dependent)

Reserves and Contingent Resource

Competitor activity in past 18 months

Viability of Play Confirmed Positive Thus Far

Perpetual/Tourmaline Locations Montney Producers Perpetual Lands HZ Locations

>1 TCF original gas in place (gross) Resource potential established Working towards area development plan
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June 14, 2011

Conventional Heavy Oil

Geographically synergistic with shallow gas assets Q2 production forecast: 400 - 450 bbl/d Low cost development drilling

Vertical ~$400K/well; 20 bbl/d HZ ~$800K/well; 50 bbl/d

4 pools de-risked for development 7 to 10 exploration prospects to be tested H2 2011

Mannville

Recompletions in existing gas wells Extensive in-house 3D & 2D seismic

Additional Exploration ongoing

Evaluating waterflood and other enhanced recovery Lloyd Channel, Lloyd Regional and Sparky 2011: Q1 2 horizontals Q2-Q4 8 horizontals & 15 verticals

Mannville

Viking Kinsella (50% WI)

Viking-Kinsella

Sparky Q2-Q4 2011: 10 infill locations drill ready

Growing low-risk heavy oil drilling inventory in excess of 100 drill-ready locations
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Warwick Gas Storage

40 Bcf Storage Reservoir
10 Bcf cushion gas in place 5 - 8 Bcf additional operating cushion 22 to 25 Bcf potential working gas capacity

1.5 cycle facility

Test Cycle Injection: May October 2010 Facility Construction Q2-Q4 2010

WGSI Storage Leases

Capable of > 200 MMcf/d withdrawal

2-19

Test Cycle Withdrawal: Jan - March 2011

Warwick Glauconitic -Nisku A Pool

7.8 Bcf

Q1 2011
5-18

4-18

1 new HZ well drilled Cycle 2 working gas set at 17 Bcf 1 new HZ drilled in April 2011 1 additional HZ well planned to further increase working gas capacity

Q2-Q4 2011
WGSI Leases Well Site Pad Compressor Facility Pipeline Horizontal Wells Q1 2011 Hz Well Q2-Q4 2011 Hz Wells

1 mi

Cycle 2 working gas set at 17 Bcf - Expect ~$1 MM funds flow per Bcf working gas capacity
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June 14, 2011

Warwick Gas Storage Facility

Compressor Bldg.

South Pad Wells TCPL Meter Station

North Pad Wells

North Pad Wells

Separators & Dehydrators

WGSI facility fully operational

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Viking / Colorado Tight Shallow Gas

Belly River Play Fairway Cardium/ Colorado Wells Perpetual Lands Viking Proved Undeveloped Viking Probable Undeveloped Viking Proven Non-Producing Prospect Inventory 5 Yr

Vast Tight Shallow Gas Play Fairway Booked Reserves

6 Bcf P+P Producing 15 Bcf P+P Developed Non-Producing 111 Bcf P+P Undeveloped 837 drills in future development capital Average 138 MMcf/well gross 1,548 unrisked addtl possible locations catalogued Average 111 MMcf/new drill Initiated advanced technical study 3 vertical drills coring 200m each of Colorado/ Viking interval for detailed geological, geomechanical and geochemical analysis Detailed special core analyses Production inflow and fracture modeling Multi-well pilot plan for Colorado Group, incorporating detailed core analysis and fracture and inflow modeling, to be determined Pilot combination of new drills and recompletions Incorporate learnings from pilot into commercial trials and full scale execution 17

Prospect Inventory

2010

Q1-Q3 2011

Q4 2011

2012

June 14, 2011

Bitumen Lands

526 net sections (336,000 net acres) of oil sand leases 7 unique project areas Various formation targets and ultimate recovery methods 2010 Activity

Drilled oil sands evaluation well at Panny in Q1 2010 Drilled oil well at Marten Hills Q1 2010; 2 wells on cold production for evaluation Testing 4 project areas - South Liege, Hoole, Panny and Clyde 9 verticals; 1 Hz

2011 Activity

Perpetual OS Leases Primary Projects SAGD Projects Fireflood Projects CSS Projects Electric Heaters Oil Pipelines

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Bitumen Panny Bluesky

8m Bitumen 10m Bitumen

Q1 2011 Drilled 3 vertical, 1 HZ to evaluate possibility of cold flow in greater Panny area Established low rate flow without solvent or thermal assistance Average pay thickness 11 m Fairly low viscosity bitumen ~15,000 cp @ 25 C Resource Assessment (McDaniel)

618 MMbbl OBIP (P50) 108 MMbbl Contingent Resource (P50) assigned utilizing horizontal cyclic steam

2010/11 Vertical Locations 2010/11 Horizontal Locations

Future drilling planned targeting possible contingent resource expansion Preparing application for pilot test

Excellent reservoir quality in Bluesky homogeneous shoreface sand facies

Roads Natural Gas Pipeline Oil Well Effluent Pipeline Perpetual Gas Plant Perpetual Oil Sands Rights Other Perpetual Lands

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June 14, 2011

Bitumen South Liege Carbonates

GROSMONT NET BITUMEN 10 - 20 m 20 30 m >30 m

Q1 2011
3 Grosmont carbonate / Leduc wells drilled to evaluate resource Stacking of 3 Grosmont units; > 30 m pay Leduc reef facies present and bitumen saturated in places; geologically complex Estimate > 1 Billion bbls OBIP

WABISKAW BITUMEN POOL

Q1 2011 OV Wells Perpetual Oil Sand Leases Leduc Reef

Excellent reservoir quality vuggy porosity in Grosmont

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2011 Capital Program

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June 14, 2011

Q1 2011 Capital Spending

Q1 2011 Capital : $56.5MM

Heavily weighted to oil and liquids-rich gas Conventional Gas 2 gross (1.5 net) strategic wells Cardium 4 gross (3.0 net) HZ wells Wilrich 2 gross (2.0 net) new wells 2 gross (1.5 net) existing well completions & tie-ins Elmworth Montney 1 completion and tie-in of 1 well (carried) Bitumen 10 gross (10.0 net) evaluation (OV) wells Conventional Heavy Oil 2 gross (2.0 net) wells Warwick Gas Storage HZ 32 recompletions/workovers & tie ins

Drill, Complete and Tie-ins: $45.3 MM

Warwick Gas Storage (WGSI), $5.7

Conventional Gas Activity, $4.0

Bitumen, $7.1 Recompletions/ Workovers, $5.2 Maintenance Capital, $3.0 Heavy Oil, $2.7 Cardium Tight Oil, $10.8

Wilrich LiquidsRich Gas, $17.8

Recompletions / Workovers: $3.4 MM

Seismic and Land: $1.7 MM Unconventional Viking/Colorado: $3.1 MM

Colorado/Viking geomechanical and geochemical work Colorado Detailed core and fracture simulation work 28 gross abandonments ~16 MMcfe/d (1st 12 month average) Budget Capital Efficiency ~$16,000/flowing BOE/d

Maintenance, Abandonment & Reclamation: $3.0 MM

Target Production Additions

>$40 million (70% of Q1 spending) targeting oil and liquids rich gas projects
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Q2- Q4 2011 Capital Budget

Warwick Gas Bitumen, $1.0 Storage (WGSI), Conventional Gas Activity, $2.7 $12.3 Land, $9.5
Recompletions/ Workovers, $5.2 Maintenance Capital, $2.8 Wilrich LiquidsRich Gas, $17.9

Q2-Q4 2011 Capital Budget Increased to $78.5 MM (from $37MM) Heavily weighted to oil and liquids-rich gas to accelerate commodity diversification Drill, Complete and Tie-ins: $60.7 MM

Wilrich 4 gross (4.0 net) HZ wells Heavy Oil - 26 gross (26.0 net) Lloyd/Sparky wells - 10 (10.0 net) exploration to test 7 additional Mannville heavy oil pools Viking/Colorado - small scale pilot WGSI 1 gross (1.0 net) HZ wells 53 recompletions/workovers & tie ins

Recompletions / Workovers: $5.5MM

Heavy Oil, $23.7

Unconventional Viking/Colorado, $3.1

Seismic and Land: $9.5 MM Maintenance , Abandonment & Reclamation: $2.8 MM Misc. abandonments Target Production Additions

~20.0 MMcfe/d (1st 12 month average) Budget Capital Efficiency ~$23,800 /flowing BOE/d

>$64 million (82% of total spending) targeting oil and liquids rich gas projects Heavily weighted to Wilrich and Mannville Heavy Oil
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June 14, 2011

Oil and Liquids Production

180% increase in oil and liquids production in two years

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Oil and Liquids Revenue

317% increase in oil and liquids revenue in two years

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June 14, 2011

Commodity Diversification

Actual and deemed production expected to increase 5% year over year Increased oil and NGL production 57% to 1,620 bbl/d in Q1 2011 from 1,033 bbl/d in 2010; Currently 2,200 bbl/d Adds from NGLs in Wilrich at Edson, light oil from Cardium at Carrot Creek and heavy oil at Mannville from Lloyd and Sparky drilling Capital program targeting to increase oil and NGL production another 130% to over 3,700 bbl/d by Q1 2012 2010 Q1 (175.5 MMcfe/d)
6.2, 4% 26.3, 15%

2011 Q1 (171.5 MMcfe/d)

8.1, 5%
9.7, 6%

2012 Q1E (180.0 MMcfe/d)

22.4 , 12%

22.7, 13%

26.0 , 15%

131.7 , 73%
143, 81%

131.1, 76%

Natural Gas

Gas over Bitumen Deemed Actual and Pending

Oil and NGLs

Increasing top line revenue from oil and NGLs with liquids-focused capital programs
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Commodity Diversification
2011 Funds Flow (91% Gas, 9% Oil; Test Cycle to 17 Bcf)
3.50 70 WTI ($/bbl) 80 90 100 110 69 77 86 101 98 4.50 111 120 129 144 141 AECO($/GJ) 5.00 130 139 148 163 160 5.50 148 157 166 181 178 6.50 188 196 205 220 217

Key Assumptions:
Production: Maintain 148 MMcfe/d flat
20% base decline $90 million capital program to maintain production $3MM/MMcfe production addition costs 2011 $14 MM (7.8 to 17 Bcf working gas) 2012 $20 MM (20 Bcf working gas) 2013 $22 MM (22 Bcf working gas)

Note: Assumes 49 Bcf (135 MMcf/d) of gas and 800 Mbbls (2,175 bbls/d) of oil production (91%: 9%).

Gas Storage Cash Flow

2012 Funds Flow (88% gas, 12% Oil; 20 Bcf Cycle)

3.50 70 80 WTI ($/bbl) 90 100 110 83 93 104 114 118 4.50 126 136 146 157 160 AECO($/GJ) 5.00 145 155 165 176 179 5.50 163 173 183 194 197 6.50 202 212 223 233 237

Note: Assumes 47 Bcf (129 MMcf/d) of gas and 1.1 MMbbls (3,000 bbls/d) of oil production (88% : 12%).

2013 Funds Flow (80% gas, 20% Oil; 22 Bcf Cycle)

3.50 70 WTI ($/bbl) 80 90 100 110 118 132 146 160 167 4.50 161 175 189 203 210 AECO($/GJ) 5.00 180 194 208 222 228 5.50 198 212 226 240 246 6.50 237 251 265 279 286

Free cash flow over and above current $36 million dividend (2012-2013 - $28 million) and $135 million capital program (2012 -2013 - $90 million to maintain production) Current forward commodity price (May 24, 2011)

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Note: Assumes 43 Bcf (118 MMcf/d) of gas production and 1.8 MMbbls (4,900 bbls/d) of oil production (80% : 20%).

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June 14, 2011

Balance Sheet

Balance Sheet
Current Net Bank Debt : ~$90 million
Current borrowing base on credit facility - $250 million Semi-annual redetermination expected on June 30, 2011

Senior Unsecured Notes: $150 million

Coupon Rate - 8.75%; Maturity date - March 2018

Convertible Debentures: $235 million

Effectively represents long term debt with the maturities from 2012 to 2015 10 Day Weighted Avg. Trading Price $ 102 $ 103 $ 102

TSX Symbol PMT.DB.C PMT.DB.D PMT.DB.E

Amount Outstanding $ 74.9 million $ 100.0 million $ 60.0 million

Coupon Rate 6.50% 7.25% 7.00%

Conversion Price $ 14.20 $ 7.50 $ 7.00

Maturity Date June 30, 2012 January 31, 2015 Dec. 31, 2015

Total Net Debt: ~$475 million Gas Storage Financing Arrangement: $42 million equivalent
Delivery obligation for 8 Bcf of cushion gas in Q1 2015

>65% of total net debt has term of 4 years or greater

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June 14, 2011

Balance Sheet Debt Reduction

Total debt reduced 24% since Q2 2007, including an additional 10% in 2010
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2011 Funds Flow and Balance Sheet Sensitivities

Average AECO Monthly Index Gas Price ($/GJ) Full year 2011 funds flow outlook Natural gas production (MMcf/d) Oil and NGL production (bbl/d) Realized gas price ($/Mcfe) Total funds flow ($MM) Per Share ($/Share/month) Payout Ratio (%) Ending net bank debt Ending net total debt Ending net bank debt to Q4 annualized funds flow ratio (times) Ending net total debt to Q4 annualized funds flow ratio (times) 3.00 135 2,170 4.53 86 0.048 41 128 513 2.0 5.5 4.00 135 2,170 5.27 120 0.067 30 94 479 0.7 3.5 5.00 135 2,170 6.00 149 0.084 24 64 449 0.4 2.6

1. Sensitivities incorporate full year operating costs of $97 million, cash general and administrative expenses of $34 million and an interest rate on bank debt of four percent. 2. The current settled and forward average AECO price for 2011 as of May 16, 2011 was $3.70 per GJ. 31

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June 14, 2011

Maximizing Shareholder Value

Opportunity Inventory - Unrisked

Reserve Report
2010 Year End P + P Reserves = 487.7 Bcfe

Current Recorded Prospect Inventory

Unrisked Additional Reserve Potential = 1,367 Bcfe
UnConventional Tight Gas Resource Plays (Rock Creek Notikewin) UnConventional Tight Gas Resource Plays (Montney)

Gas Over Bitumen Proved + Probable UnDeveloped

Conventional Shallow Gas Drills Conventional Recompletions

+
Gas Storage

UnConventional Tight Gas Resource Plays (Wilrich)

Proved + Probable Developed

+
Option Value
NE AB Bitumen Tight Oil and Gas Exploration GOB Technical Solutions TriOil Exploration
Bitumen In-Situ

UnConventional Tight Shallow Gas Resource Plays (Viking, Colorado)

Unconventional Tight Oil (Cardium) East Central Heavy Oil

As technical understanding advances, risk assessment adjusts and risk-discounted potential grows
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June 14, 2011

Sum of the Parts Risked Value

Asset
Base Shallow Gas Reserve Report Prospect Inventory Resource Projects Reserve Report Deep Basin Wilrich East Central Heavy Oil Montney Viking / Colorado Bitumen Gas Storage Investment in TriOil Total Assets Net Debt TOTAL NET VALUE
Source: Company Estimates $4/Mcf AECO gas price

Measure
PV10% 1,485 net locations and recompletions

Valuation Range ($MM)

$480 175 - 270

PV10% 57 net locations 26 net locations 172 net locations 111 net locations 822 net locations 120 MMbbls contingent resource 17 22 Bcf working gas @ $10 MM / Bcf 1.3 MM shares

$145 30 40 65 160 50 89 80 325 60 90 20 - 40 $170 $220 $5 - $10 $1, 280 $1,869

March 31, 2011

$(475)

$775 $1,380
Per Share

$5.23 - $9.31

Significant future value to be recognized from multiple assets Further leverage to gas price recovery upside

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Investment Thesis

Asset base repositioning for oil and liquids-focused opportunities successful Edson Wilrich in full scale development phase Conventional heavy oil low exposure exploration and development promising High impact value potential from long term resource plays evident Elmworth Montney resource identified and scoping development scenarios Quantifying bitumen contingent resource at Panny and Liege Vast Viking/Colorado shallow shale gas fairway undergoing evaluation Diversified funds flow from gas storage asset established Sum-of-the parts analysis defines an attractive return on investment Evolving commodity mix growing future funds flow and netbacks Tremendous leverage to gas price recovery Every $0.50 per Mcf = $20 million of funds flow 65% of debt has term beyond 2014 providing flexibility to manage through low in gas price cycle Multiple levers available to manage balance sheet to optimize value

Strategically setting in place the inter-locking pieces for a strong growth strategy
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June 14, 2011

3200, 605 5 Avenue SW Calgary, Alberta CANADA T2P 3H5 800.811.5522 TOLL FREE 403.269.4400 PHONE 403.269.4444 FAX info@perpetualenergyinc.com EMAIL www.perpetualenergyinc.com WEB
FOR ADDITIONAL INFORMATION:

Susan L. Riddell Rose President & CEO Cameron R. Sebastian Vice President, Finance & CFO

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