Paramount Resources Ltd. Announces Equity Offerings

CALGARY, ALBERTA - Oct. 4, 2004 /CNW/ - Not for dissemination
to United States newswire services or dissemination in the United States

Paramount Resources Ltd. ("Paramount") has entered into an agreement to
sell, to a syndicate of Canadian underwriters co-led by FirstEnergy
Capital Corp., BMO Nesbitt Burns Inc., Canaccord Capital Corporation and
GMP Securities Ltd., 2,000,000 common shares at a price of $23.00 per
share for gross proceeds of $46 million. Paramount has also granted an
option to the underwriters to acquire an additional 500,000 common
shares at the same price. If the option is exercised in full, the gross
proceeds of the issue will be $57.5 million. The shares will be offered
for sale by short form prospectus in Canada in the provinces of British
Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia.
Closing of the issue is expected to occur on or about October 26, 2004.

Paramount also intends to issue, by way of private placement in Canada
in the same provinces as for the public share offering, up to 2,000,000
common shares of Paramount on a "flow-through" basis at $29.50 per share
for gross proceeds of up to $59 million. Paramount has entered into an
agreement with the same syndicate of Canadian underwriters involved in
the public share offering pursuant to which the syndicate will act as
agents of Paramount to sell 950,000 of the total offering of
flow-through shares on a guaranteed agency basis. Up to another
1,050,000 flow-through shares are to be sold to directors, management
and employees of Paramount under a separate private placement.

The proceeds from the offerings will be used to repay existing
indebtedness and for general corporate purposes including ongoing
exploration activities. The completion of each of the equity offerings
is subject to Paramount receiving all necessary regulatory approvals.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of these
securities, in any jurisdiction in which such offer, solicitation or
sale would be unlawful. The shares of Paramount being offered pursuant
to the equity offerings will not be and have not been registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act"), and many not be offered or sold within the United
States except in transactions exempt from the registration requirements
of the U.S. Securities Act and applicable state securities laws.

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".

Advisory Regarding Forward-Looking Statements

This news release contains forward-looking statements within the meaning
of applicable securities laws. Forward-looking statements include
estimates, plans, expectations, opinions, forecasts, projections,
guidance or other statements that are not statements of fact. This news
release contains forward-looking statements with respect to the timing
and completion of the equity offerings, the amounts to be raised under
the equity offerings and the use of proceeds therefrom. Although
Paramount believes that the expectations reflected in such
forward-looking statements are reasonable, undue reliance should not be
placed on them because we can give no assurance that such expectations
will prove to be correct. Factors that could cause actual results to
differ materially from those set forward in the forward looking
statements include general economic business and market conditions,
industry conditions, stock market and commodity price volatility, and
difficulty in obtaining required regulatory approvals. We undertake no
obligation to update our forward-looking statements except as required
by law.

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)