CALGARY, ALBERTA - Jun 30, 2004 /CNW/ - Paramount
Resources Ltd. is pleased to announce that it has closed the
previously announced acquisition of oil and natural gas assets in
the Kaybob area in central Alberta and in the Fort Liard area in
the Northwest Territories and northeast British Columbia for $189
million, subject to adjustments. The assets were acquired from
Enerplus Commercial Trust immediately following the acquisition
of the assets by Enerplus from Chevron Canada Western
Partnership. Certain of the assets remain subject to rights of
first refusal.
The properties are currently producing approximately 10,000
BOE/d, comprised of 40 MMcf/d of natural gas and 3,300 bbl/d of
oil and NGLs. The reserves attributable to the properties as of
the effective date, June 1, 2004, are estimated to be proved
reserves of approximately 47.2 Bcf of natural gas and 4.4 million
Bbls of oil and NGLs, or a total of 12.3 million BOEs, and proved
plus probable reserves of approximately 93.6 Bcf of natural gas
and 6.7 million Bbls of oil and NGLs, or a total of 22.2 million
BOEs.
After giving effect to the acquisition, Paramount forecasts its
production to average 180 MMcf/d of natural gas and 7,500 Bbl/d
of oil and NGLs, or a total of 37,500 BOE/d, for all of 2004.
Current production, including the acquisition, is approximately
200 MMcf/d and over 9,000 Bbl/d, or 42,500 BOE/d. Based on
current forward strip pricing, Paramount forecasts cash flow in
2004 to approximate $300 million or approximately $5.00/share and
capital expenditures to total $430 million. Net debt levels at
year end after giving effect to the acquisition are projected to
be around $430 million which would equate to a debt to cash flow
ratio of approximately 1.4 times.
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 Oil and Gas Information
In this news release, certain natural gas volumes have been
converted to barrels of oil equivalent (BOE) on the basis of six
thousand cubic feet (Mcf) to one barrel (Bbl). BOE may be
misleading, particularly if used in isolation. A BOE conversion
ration of 6 Mcf: 1 Bbl is based on an energy equivalency
conversion method primarily applicable at the burner tip and
doers not represent equivalency at the well head.
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. The forward looking statements in this news release
include statements with respect to future production, capital
expenditures, cash flow, net debt, and the magnitude of oil and
natural gas reserves. 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
have been 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, fluctuations in interest rates, changes in production
estimates, our future costs, future crude oil and natural gas
prices, and changes in our reserve estimates. Paramount's
forward-looking statements are expressly qualified in their
entirety by this cautionary statement. We undertake no obligation
to update our forward-looking statements except as required by
law.
