Paramount Resources Ltd. Completes Bought Deal Financing

CALGARY, ALBERTA - Oct. 26, 2004 /CNW/ - Paramount Resources
Ltd. ("Paramount") has completed its previously announced public
offering of 2,500,000 common shares (including 500,000 common shares
issued following the exercise in full of the underwriters' option) at a
price of $23.00 per share for gross proceeds of $57.5 million. The
shares were sold through a syndicate of Canadian underwriters co-led by
FirstEnergy Capital Corp., BMO Nesbitt Burns Inc., Canaccord Capital
Corporation and GMP Securities Ltd.

The net proceeds from the offering will initially be used to reduce
existing indebtedness and thereafter for capital expenditures, the
repayment of indebtedness, the financing of acquisitions or additions to
working capital.

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".

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)