Paramount Resources Ltd. Further Extends Exchange Offer For Senior Notes

CALGARY, ALBERTA - Jan. 19, 2005 /CNW/ - Paramount Resources
Ltd. (TSX:POU) is further extending its exchange offer and consent
solicitation for its outstanding senior unsecured notes to 5:00 p.m. New
York time on January 21, 2005. Negotiations with representatives of the
noteholder committee formed to respond to the offer are continuing. The
minimum tender condition in the offer has not yet been satisfied.

Paramount is a Canadian oil and natural gas exploration, development and
production company with operations focused in Western Canada.
Paramount's common shares are listed on the Toronto Stock Exchange under
the symbol "POU".

This press release is neither an offer to sell nor a solicitation of an
offer to participate in the exchange offer and consent solicitation.

For further information: Paramount Resources Ltd., J.H.T. (Jim) Riddell, President and Chief Operating Officer, (403) 290-3600 / Paramount Resources Ltd., B.K. (Bernie) Lee, Chief Financial Officer, (403) 290-3600, (403) 262-7994 (FAX),, Paramount Resources Ltd., C.H. (Clay) Riddell, Chairman and Chief Executive Officer, (403) 290-3600, (403) 262-7994 (FAX)