FOR: PARAMOUNT ENERGY TRUST
TSX SYMBOL: PMT.UN
AND PARAMOUNT RESOURCES LTD.
TSX SYMBOL: POU
MARCH 11, 2003 - 20:12 EST
Paramount Energy Trust Announces Closing of Rights
Offering; Paramount Energy Trust and Paramount Resources
Ltd Announce Closing of Additional Asset Purchase by
Paramount Energy Trust
CALGARY, ALBERTA--Paramount Energy Trust ("PET") (TSX - PMT.UN)
announces that on March 11, 2003 it closed its previously
announced rights offering with 100% of the trust units offered
being sold. A total of 29,728,782 trust units were issued for
total gross proceeds to PET of $150.1 million. BMO Nesbitt Burns
Inc., CIBC World Markets Inc. and FirstEnergy Capital Corp. acted
as dealer managers in Canada under the rights offering. As a
result of the completion of the rights offering, there is now a
total of 39,638,376 trust units of PET outstanding.
In addition, PET and Paramount Resources Ltd. ("PRL") (TSX - POU)
jointly announce the closing on March 11, 2003 of the acquisition
by Paramount Operating Trust ("POT"), PET's operating subsidiary
trust, of additional natural gas assets in northeast Alberta from
PRL for a purchase price of $220 million. These assets consist
of PRL's natural gas assets in the Bohn Lake, Chard, Chard
Southwest, Clyde, Cold Lake, Cold Lake Sonoma, Corner, Hoole,
Kettle River, Legend East, Leismer/Leismer South, Liege East,
Liege North, Liege South, Pony, Quigley, Saleski, Surmont, Teepee
Creek, Thornbury and Winefred areas. These assets had a combined
average production of 74 mmcf per day of natural gas during the
six months ended December 31 2002. The revenues and expenses
associated with these assets accrued to POT for POT's account as
of July 1, 2002. The assets acquired by POT are in addition to
the natural gas assets in the Legend area that POT acquired from
PRL in early February of 2003. The combined production of
natural gas from the assets in the Legend area and the assets
acquired by PET on March 11, averaged 94 mmcf per day during the
six months ended December 31, 2002. C.H. Riddell is the
Chairman, Chief Executive Officer and a director of PRL. S.L.
Riddell Rose is a director of PRL.
In connection with the above acquisition, PET obtained a secured
demand revolving credit facility with a syndicate of major
Canadian banks in the amount of $100 million. PET drew down the
amount of $70 million on this facility for the purposes of the
acquisition and for working capital. This facility is scheduled
for review on May 31, 2003. PET believes that its lenders will
renew this facility prior to that time.
The closing of the above transactions represents the completion
of the formation and structuring of PET as described in PET's
Canadian prospectus dated January 29, 2003 and U.S. prospectus
dated February 3, 2003. For more information on this
structuring, including the natural gas assets acquired by POT
pursuant thereto, persons resident in Canada can view a copy of
the Canadian prospectus of PET at the SEDAR website at
www.sedar.com and persons resident in the United States can view
a copy of the U.S. prospectus of PET at the EDGAR website which
can be located through www.sec.gov .
Paramount Energy Trust is a natural gas-focussed Canadian energy
trust. PET's Trust Units are listed on the Toronto Stock
Exchange under the symbol "PMT.UN". Further information with
respect to PET can be found at its website at
www.paramountenergy.com.
PRL is a Canadian oil and natural gas exploration, development
and production company with operations focussed in Western
Canada. PRL's common shares are listed on the Toronto Stock
Exchange under the symbol "POU". Further information with
respect to PRL can be found at its website at
www.paramountres.com.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
