Paramount Resources Ltd. Further Extends Exchange Offer For Senior Notes

CALGARY, ALBERTA - Jan. 18, 2005 /CNW/ - As announced on
January 17, 2005, Paramount Resources Ltd.'s (TSX:POU) discussions with
representatives of the committee of noteholders formed to respond to
Paramount's exchange offer and consent solicitation for its outstanding
senior unsecured notes are continuing. Accordingly, the offer expiration
date has been extended to 5:00 p.m. New York time on January 19, 2005.
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),, Paramount Resources Ltd., 4700 Bankers Hall West, 888 - 3rd Street SW, Calgary, AB T2P 5C5