Paramax Resources Ltd.
TSX VENTURE : PXM

Paramax Resources Ltd.

March 18, 2011 09:15 ET

Paramax Resources Ltd. Updates Idaho Development Plans

CALGARY, ALBERTA--(Marketwire - March 18, 2011) - Paramax Resources Ltd. (TSX VENTURE:PXM) is very pleased to announce that, along with its partner Bridge Resources Corp. each with 50% working interest, has committed to the development of the Willow and Hamilton Fields in Payette County, Idaho. These two fields were discovered in 2010 and appraised by six additional wells.

Negotiations are proceeding for the installation of a meter station to interconnect this new natural gas supply to the interstate transmission system which will allow access to Idaho's natural gas customers as well as natural gas markets in the Pacific Northwest. As well, design and approval work has begun for the installation of the pipelines and the midstream facilities upstream of the meter station.

Design and planning of the pending stimulation of the four additional Hamilton wells has been done to determine well production rates and optimal pipeline size. These are very small fracs to clean-up highly porous conventional sand reservoirs. The stimulation program is subject to State approval of fracing parameters, which is expected in April, and on availability of equipment which will be contracted once approval is received. 

In addition to the work on the Hamilton field, planning and design of the installation of the facilities and the 8.5 mile pipeline to tie-in Willow Field has begun.

Willow and Hamilton are the first commercial discoveries of oil and gas in Idaho. Paramax and Bridge express their appreciation to the State of Idaho and the County of Payette for their support in achieving this goal.

Forward-Looking Statements and Advisories

Statements herein that are not historical facts may be considered forward looking statements including estimated stimulation and drilling plans and the timing thereof, capital expenditures and the allocation thereof and the method of funding thereof and the timing thereof, timing of tie-in and commencement of production of wells, plans to increase proved producing reserves by drilling existing drilling inventory. These forward-looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Corporation's future plans are forward-looking statements. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling and completion rigs and other services, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, Paramax's actual results may differ materially from those expressed in, or implied by, the forward-looking statements.

Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although Paramax believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Paramax can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Paramax operates; the timely receipt of any required regulatory approvals; the ability of Paramax to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which Paramax has an interest in to operate the field in a safe, efficient and effective manner; the ability of Paramax to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development or exploration; the timing and costs of pipeline and facility construction and expansion; the ability of Paramax to secure adequate product transportation; future oil and natural gas prices; currency, exchange and interest rates; the regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Paramax operates; and the ability of Paramax to successfully market its oil and natural gas products.

Readers are cautioned that the foregoing list of factors and assumptions is not exhaustive. Additional information on these and other factors that could affect Paramax's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), or at Paramax's website. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Paramax does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

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