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 assets by minimizing costs and maximizing revenue;
- 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
- crystallizing value through dispositions.