Paramount Energy Trust
TSX : PMT.DB
TSX : PMT.UN

Paramount Energy Trust

November 15, 2006 13:16 ET

Paramount Energy Trust Confirms November 2006 Distribution

CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2006) - Paramount Energy Trust (TSX:PMT.UN) ("PET" or the "Trust") is pleased to confirm that its distribution to be paid on December 15, 2006 in respect of income received by PET for the month of November 2006, for Unitholders of record on November 30, 2006, will be $0.20 per Trust Unit. The ex-distribution date is November 28, 2006. The November distribution brings cumulative distributions paid since the inception of the Trust in February 2003 to $10.224 per Trust Unit.

The Trust currently has in place a hedging strategy designed at this time to provide a degree of gas price certainty for approximately half of its production for the next year and a half. For the period from November 1, 2006 to March 31, 2008, the weighted average price on financial hedges and physical forward sales contracts for an average of 79,265 GJ/d is $8.62 per GJ. The forward market for natural gas sales in November 2006 through March 2007, Summer 2007 and November 2007 through March 2008 is currently trading at an average price of $7.23, $7.42 and $8.22 per GJ at AECO respectively.

In July 2006, PET reduced its monthly distribution to $0.20 following a significant drop in natural gas prices and remains cautious in its outlook with respect to near term natural gas prices given the persistent unprecedented high inventory of natural gas in North American gas storage. The reduced distribution has allowed the Trust to continue its profitable capital spending program, focusing on enhancing the sustainability of the Trust's production base and adding Unitholder value. PET reviews distributions on a monthly basis based on cash flow projections which incorporate PET's base production forecasts, current hedges and physical forward natural gas sales, the forward market for natural gas prices, and the Trust's capital spending program and projected production additions. Future distributions are subject to change as dictated by changes in commodity price markets, operations and future business development opportunities.

Forward-looking Information

This news release contains forward-looking information. Implicit in this information, particularly in respect of cash distributions, are assumptions regarding natural gas prices, production, royalties and expenses which, although considered reasonable by PET at the time of preparation, may prove to be incorrect. These forward-looking statements are based on certain assumptions that involve a number of risks and uncertainties and are not guarantees of future performance. Actual results could differ materially as a result of changes in PET's plans, changes in commodity prices, general economic, market, regulatory and business conditions as well as production, development and operating performance and other risks associated with oil and gas operations. There is no guarantee by PET that actual results achieved will be the same as those forecast herein.

Paramount Energy Trust is a natural gas-focused Canadian energy trust. PET's Trust Units and Convertible Debentures are listed on the Toronto Stock Exchange under the symbol "PMT.UN", "PMT.DB", "PMT.DB.A" and "PMT.DB.B", respectively. Further information with respect to PET can be found at its website at www.paramountenergy.com.

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

Contact Information

  • Paramount Energy Trust
    Susan L. Riddell Rose
    President and Chief Executive Officer
    (403) 269-4400
    or
    Paramount Energy Trust
    Cameron R. Sebastian
    Vice President, Finance and Chief Financial Officer
    (403) 269-4400
    or
    Paramount Energy Trust
    Sue M. Showers
    Investor Relations and Communications Advisor
    (403) 269-4400
    (403) 269-6336 (FAX)
    or
    Paramount Energy Operating Corp,
    administrator of Paramount Energy Trust
    Suite 500, 630 - 4 Avenue SW, Calgary, AB T2P 0J9
    Email: info@paramountenergy.com
    Website: www.paramountenergy.com