Paramount Resources Ltd. And Paramount Energy Trust Announce Declaration Of Dividend



FEBRUARY 4, 2003 - 19:37 EST

Paramount Resources Ltd. And Paramount Energy Trust
Announce Declaration Of Dividend

CALGARY, ALBERTA--Paramount Resources Ltd. ("PRL") and Paramount
Energy Trust ("PET") jointly announce that on February 3, 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. Once they commence trading on the Toronto Stock Exchange,
the trading symbol for the Trust Units will be "PMT.UN".

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