FOR: PARAMOUNT RESOURCES LTD.
TSX SYMBOL: POU
MAY 1, 2003 - 17:19 EST
Paramount Resources Ltd. Property Disposition Program
Update
CALGARY, ALBERTA--Paramount is pleased to report that it has
substantially completed the property disposition program which it
initiated in the fall of 2002. Paramount has agreed to sell
properties for total proceeds of $89 million, all of which are in
various stages of the sale process.
Closing of all transactions is expected to occur before the end
of June 2003 and the majority of the sales have an effective date
of January 1, 2003. The disposition program comprises 16.1 MMcf/d
of gas production and 1,436 Bbl/d of oil and natural gas liquids
production estimated for 2003 and includes reserves of 12.6 Bcf
of proven gas reserves (16.1 Bcf of proven plus probable) and
4.85 MMBbl of proven oil and natural gas liquids reserves (8.7
MMBbl proven plus probable) estimated at January 1, 2003, and as
such, will reduce Paramount's 2003 forecast production by the
same. The divestiture program is predominantly comprised of
smaller non-core properties in Southern Alberta and all of
Paramount's' operations in North Dakota and the divestiture will
allow Paramount to focus its efforts into growing the more
significant assets in its portfolios.
As a result of these transactions, Paramount now expects daily
production of 150 to 160 MMcf/d and 7,000 Bbl/d or 32,000 to
33,600 BOE/d on a 6:1 basis and cash flow of approximately $200
million or $ 3.30/share. Paramount's capital expenditure program
budget all of 2003 is $150 to $175 million. As a result of excess
cash flow, the disposition program, and the closing of the
transactions associated with the Paramount Energy Trust creation,
year-end debt levels are projected to be reduced to approximately
$200 million.
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".
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
