06:36 AM EDT, 03/26/2024 (MT Newswires) -- Perpetual Energy Inc. ( PMGYF ) overnight Monday reported fourth-quarter net income of $6.3 million, or $0.09 per diluted share, down from $8.6 million, or $0.33 per diluted share, a year earlier.

Oil and natural gas revenue for the quarter ended Dec. 31, 2023, was $12.8 million, down from $28.4 million a year earlier.

Adjusted funds flow for Q4 was $12.7 million, or $0.19 per share, down from $14.2 million, or $0.22 per share, a year ago.

Average production for Q4 was 5,749 barrels of oil equivalent per day, down 19% from the comparative period of 2022 and down 12% quarter-over-quarter as a result of the Mannville Disposition.

Total proved reserves were 15.9 million barrels of oil equivalent at year-end 2023, representing 61% of the company's proved plus probable reserves.

Proved plus probable producing reserves were 12.2 MMboe at year-end 2023, representing 47% of total proved plus probable reserves, the company said.

Looking ahead, Perpetual expects that court approval for the settlement agreement will occur in late April or early May. With the Sequoia Litigation resolved, Perpetual will focus on strategic priorities, which include maximizing funds flow and value at Edson; re-igniting the active exploration program for Tight Oil and Gas; advancing technology-driven diversifying new ventures; and improving the balance sheet, lowering corporate costs and managing risk.

Perpetual's board has approved the first-quarter production guidance of between 4,300 and 4,600 boe/d, capital spending of $1 million, cash costs between $16 and $18 per boe, and royalties of 18% to 20% as a percentage of total revenue.

The company's stock soared 36.6% in Canada yesterday.