Paramount Energy Trust
TSX : PMT.UN

Paramount Energy Trust

October 20, 2006 17:10 ET

Paramount Energy Trust Confirms October 2006 Distribution

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2006) - Paramount Energy Trust (TSX:PMT.UN) ("PET" or the "Trust") is pleased to confirm that its distribution to be paid on November 15, 2006 in respect of income received by PET for the month of October 2006, for Unitholders of record on October 31, 2006, will be $0.20 per Trust Unit. The ex-distribution date is October 27, 2006. The October distribution brings cumulative distributions paid since the inception of the Trust in February 2003 to $10.024 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. The following is a summary of PET's current and physical forward sales arrangements:



Volumes at
AECO
------------------------------------------------------------------------
Price ($/GJ) % of
Type of Current
Contract GJ/d Fixed Floor Ceiling Term Production
------------------------------------------------------------------------
------------------------------------------------------------------------
November 2006
Financial 35,000 $ 8.60 - - - March 2007
------------------------------------------------------------------------
November 2006
Financial 5,000 - $ 9.50 $ 11.00 - March 2007
------------------------------------------------------------------------
November 2006
Financial 5,000 - $ 9.00 $ 10.00 - March 2007
------------------------------------------------------------------------
November 2006
Physical 27,500 $ 8.94 - - - March 2007
------------------------------------------------------------------------
November 2006
Physical 5,000 - $ 9.00 $ 11.00 - March 2007
------------------------------------------------------------------------
November 2006
Physical 5,000 - $ 9.00 $ 10.00 - March 2007
------------------------------------------------------------------------
November 2006
Physical 5,000 - $ 8.50 $ 11.00 - March 2007
------------------------------------------------------------------------
------------------------------------------------------------------------
November 2006
Period Total 87,500 $ 8.82(1) - March 2007 55%
------------------------------------------------------------------------
------------------------------------------------------------------------
April
Financial 40,000 $ 7.96 - - - October 2007
------------------------------------------------------------------------
April
Physical 42,500 $ 7.96 - - - October 2007
------------------------------------------------------------------------
------------------------------------------------------------------------
April
Period Total 82,500 $ 7.96 - October 2007 52%
------------------------------------------------------------------------
------------------------------------------------------------------------
November 2007
Financial 35,000 $ 9.40 - - - March 2008
------------------------------------------------------------------------
November 2007
Physical 37,500 $ 9.69 - - - March 2008
------------------------------------------------------------------------
------------------------------------------------------------------------
November 2007
Period Total 72,500 $ 9.55 - March 2008 45%
------------------------------------------------------------------------
------------------------------------------------------------------------
(1) Average price calculated using fixed price and floor price for
collars


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 $7.47, $7.32 and $8.52 per GJ at AECO respectively.

PET reduced its monthly distribution earlier this year to $0.20 with the July 2006 distribution 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. 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