Over the past several years, Perpetual has prioritized repositioning its asset base and reducing debt while balancing the other pillars of its value-driven strategy. Three asset-related strategies have been employed.
1) Cash Flow Diversification:
- exploration and development of conventional heavy oil opportunities, geographically synergistic with base operations;
- exploration and development of resource-style, liquids-rich gas in the Alberta deep basin; and
- pursuit of creative energy business opportunities leveraging assets and expertise, such as development of the commercial natural gas storage business at Warwick.
2) Asset Base Transformation for Long-Term Diversification and Growth:
- new venture activities to capture and assess resource-style gas, liquids-rich gas and oil opportunities with risk-managed investment; and
- bitumen resource definition, evaluation and extraction activities.
3) Base Asset Optimization:
- maximize the value of base shallow gas assets by minimizing costs and maximizing revenue and maintaining exposure to low cost production and reserve addition opportunities through uphole recompletions and low exposure, concentric exploration of undeveloped shallow gas land base;
- making accretive acquisitions to complement and enhance the value of the shallow gas opportunity inventory; and
- directing excess cash flows to fund the diversification and growth strategies.