Paramount Resources Ltd. And Paramount Energy Trust Advise Of PRL Common Shares Trading Ex-Dividend And PET Trust Units Trading On A When Issued Basis





FEBRUARY 7, 2003 - 09:00 EST

Paramount Resources Ltd. And Paramount Energy Trust
Advise Of PRL Common Shares Trading Ex-Dividend And PET
Trust Units Trading On A When Issued Basis

CALGARY, ALBERTA--Paramount Resources Ltd. ("PRL") (TSX : POU)
and Paramount Energy Trust ("PET") advise that PRL's common
shares will commence trading ex - dividend at the open of markets
on the Toronto Stock Exchange (the "TSX") on February 7, 2003. In
addition, the Trust Units of PET to be paid by PRL pursuant to
the dividend previously declared by its board of directors will
commence trading on a when issued basis on the TSX under trading
symbol "PMT.UN" at the open of markets on the TSX on February 7,

As referred to in earlier press releases of PRL and PET dated
February 3, 2003 and February 4, 2003, the board of directors of
PRL declared a dividend-in-kind (the "Dividend") of an aggregate
of 9,909,767 Trust Units of PET (the "Dividend Trust Units"). The
Dividend will be paid to holders of PRL common shares of record
as of the close of business on February 11, 2003 (the "Dividend
Record Time"). Depending on the number of options to acquire PRL
common shares exercised prior to the Dividend Record Time, the
Dividend will be paid, at a minimum, on the basis of one Dividend
Trust Unit for every 6.079 PRL common shares held at the Dividend
Record Time and, at a maximum, on the basis of one Dividend Trust
Unit for every 6 PRL common shares held at the Dividend Record
Time. The exact ratio for the Dividend will be announced by press
release shortly after the Dividend Record Time.

The Dividend was declared after PET received all regulatory
clearances with respect to its final prospectus in Canada and its
registration statement in the United States. The final prospectus
and registration statement qualify and register (i) the Dividend
Trust Units, (ii) Rights to purchase further Trust Units, such
Rights to be issued by PET to unitholders after the payment of
the Dividend, and (iii) the Trust Units issuable upon the
exercise of the Rights.

BMO Nesbitt Burns Inc., CIBC World Markets Inc. and FirstEnergy
Capital Corp. are acting as financial advisors to PRL with
respect to the foregoing transactions, and have agreed to act as
dealer managers in Canada under the rights offering.

This press 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 State in which such offer, solicitation
or sale would be unlawful prior to registration or qualification
under the securities laws of any such State. The securities to be
offered under the registration statement are in connection with a
distribution by both PET (the issuer of the securities) and PRL
(a security holder of a portion of the securities). A written
prospectus relating to this distribution may be obtained from:


In Canada:                         In the United States:

BMO Nesbitt Burns Inc.             BMO Nesbitt Burns Corp.
Shane Fildes                       Bill Schneider 
1400, 421 - 7 Avenue SW            700 Louisiana Street, Suite 4425
Calgary, Alberta T2P 4K9           Houston, Texas 77002
(403) 515-1500                     (713) 223-4400

CIBC World Markets Inc.            CIBC World Markets Corp.
Brian Heald                        David Ash 
9th Floor, Bankers Hall East       1600 Smith Street, Suite 3100
855 - 2 Street SW                  Houston, Texas 77002
Calgary, Alberta T2P 4J7           (713) 650-2000
(403) 260-0500

FirstEnergy Capital Corp.          FirstEnergy Capital (USA) Corp.
John Chambers                      James Davidson 
1600, 333 - 7 Avenue S.W.          1600, 333 - 7 Avenue SW 
Calgary, Alberta T2P 2Z1           Calgary, Alberta T2P 2Z1
(403) 262-0600                     (403) 262-0600


In addition, persons resident in Canada can view a copy of the
Canadian final prospectus at the SEDAR website at
and persons resident in the United States can view a copy of the
U.S. registration statement at the EDGAR website which can be
located through .

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". Paramount Energy Trust is a
natural gas-focussed Canadian energy trust.

The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.

For further information: Paramount Resources Ltd., Clayton (Clay) H. Riddell, Chairman and CEO, (403) 290-3600, James (Jim) H. T. Riddell, President, (403) 290-3600, Paramount Energy Operating Corp, administrator of Paramount Energy Trust, Susan L. Riddell Rose, President and Chief Operating Officer, (403) 269-4400, Gary C. Jackson, Vice-President, Land, Legal and Acquisitions, (403) 269-4400, Cameron R. Sebastian, Vice-President, Finance and CFO, (403) 269-4400