Paramount Resources Ltd. Extends Exchange Offer For Senior Notes

CALGARY, ALBERTA - Jan. 14, 2005 /CNW/ - Paramount Resources
Ltd. (TSX:POU) announces that it has extended the offer expiration date
under its exchange offer and consent solicitation for its 7 7/8% Senior
Notes due 2010 and 8 7/8% Senior Notes due 2014 to 5:00 p.m. New York
time on January 14, 2005. The minimum tender condition in the offer has
not yet been satisfied. Paramount is in discussions on the terms of the
offer with representatives of the noteholder committee that has been
formed in response to the offer.

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 Notes Offer.

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