Paramount Resources Ltd. Updates Status of Exchange Offer for Senior Notes

CALGARY, ALBERTA - Jan. 17, 2005 /CNW/ - Paramount Resources
Ltd. (TSX:POU) announces that its 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. With today being a holiday in the United States, a
further announcement on the status of the offer will be made tomorrow.

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