Paramount Resources Ltd. Announces the Results from the Winter Activity at Colville Lake N.W.T.



JUNE 23, 2003 - 09:01 ET

Paramount Resources Ltd. Announces the Results from the
Winter Activity at Colville Lake N.W.T.

CALGARY, ALBERTA--Paramount Resources Ltd. ("Paramount") is
pleased to announce the results from the past winters exploration
activity in the Colville Lake Area of the NWT. The Colville Lake
Area is situated at the Arctic Circle about 250 km northeast of
Norman Wells. The Colville area was recognized by Paramount as
having significant potential for large-scale sweet gas and
condensate reserves. The main target in the area is structurally
and stratigraphically trapped gas within Cambrian aged Mt. Clarke
sandstones. Apache Canada Ltd. ("Apache") is Paramount's
50-percent partner in the area.

Paramount, over the last three years, has acquired a significant
land base in the area of some 650,000 acres (approximately 28
Alberta townships). This has been done through the negotiation in
2001 of a 10-year concession agreement with the Behdzi Ahda First
Nation within the Sahtu Land Claims Settlement Region and through
the acquisition of 2 Federal Exploration Licenses (EL 399 and
414). Under the terms of the concession agreement 11 separate
blocks were leased from the local first nations people where they
hold the subsurface mineral rights. Available public technical
information indicates that potential prospects lie under each of
the 11 optioned blocks.

In late 2002, Paramount acquired a 50-percent partner in all of
its lands in the area in order to accelerate exploration and
development. Apache Canada as part of the partnership agreement
participated in the drilling last winter of two 1,450-meter wells
on Paramount's Nogha prospect covering approximately 39,488
acres. The Nogha prospect is the first of 11 concession parcels
to be tested. The first well, Paramount Apache Nogha C-49, was
spud Jan 25, 2003 and was drilled without any problems to its
final TD on February 25, 2003 at 1408 m. The C-49 well
encountered multiple zones of gas bearing sandstone reservoir
within the basal Cambrian section and was cased and completed as
a successful Mt. Clarke gas well. 

The second well in the program, Paramount Apache Nogha M-17, was
drilled down structure from the C-49 well. The M-17 well was spud
February 25, 2003 and was again drilled without any problems to
its final TD on March 23, 2003 at 1510 m. The M-17 well was cased
and completed as a second successful Mt. Clarke gas well. Due to
the encroachment of spring breakup the well was not stimulated
but was perfed and flow tested. Analysis of the petrophysics,
seismic, and the flow and build up data from the 2 Nogha wells is
seen as extremely encouraging by the partners. Further specific
information relating to deliverability, pressure, and reserves
will not be released at this time due to the competitive nature
of exploration.

In addition to the native concession blocks, Paramount and Apache
hold two exploration licenses acquired by competitive work
commitment bid from the Federal government (EL399 and EL414). The
partners evaluated EL399 last winter through the purchase and
reprocessing of 2D trade seismic data and by carrying out a new
156 km 2D seismic survey. This seismic has been evaluated and is
being utilized to identify potential drilling locations on EL
399. On EL414 trade seismic data was purchased and reprocessed.
This data is currently being mapped to assist in the planning of
a 2D heli-portable seismic survey that will be carried out later
this year. 

Plans by the partners for the next season include re-entering the
recent Nogha wells to evaluate additional untested zones and the
drilling of additional wells to test other prospects in the area
and to further delineate the Nogha discovery.

For further information: Paramount Resources Ltd., C. H. Riddell, Chairman and Chief Executive Officer, (403) 290-3600, (403) 262-7994 (FAX), Paramount Resources Ltd., J. H. T. Riddell, President and Chief Operating Officer, (403) 290-3600, (403) 262-7994 (FAX)