ProspEx Resources Ltd.

May 31, 2011 11:29 ET

Paramount Resources Ltd. Completes the Acquisition of ProspEx Resources Ltd.

CALGARY, ALBERTA--(Marketwire - May 31, 2011) - Paramount Resources Ltd. ("Paramount") has completed the acquisition of ProspEx Resources Ltd. ("ProspEx") (TSX:PSX) pursuant to an arrangement under the Business Corporations Act (Alberta), with 99.9% of the ProspEx shares voted at ProspEx's shareholders meeting being voted in favour of the transaction.

As a result of pro-rationing under the arrangement based on the elections received, ProspEx shareholders who elected to receive cash for their ProspEx shares will receive cash consideration for approximately 55% of their ProspEx shares and for the remainder of their ProspEx shares will receive 0.07162 of a Class A Common Share of Paramount for each of such shares.

Paramount issued a total of 2,000,000 Class A Common Shares and paid an aggregate of approximately $64.8 millon in cash to acquire the ProspEx shares it did not already own, being approximately 91% of ProspEx's outstanding shares. ProspEx's shares will be delisted from the Toronto Stock Exchange by the end of this week.

Contact Information

  • Paramount Resources Ltd.
    J.H.T. (Jim) Riddell
    President and Chief Operating Officer
    (403) 290-3600
    (403) 262-7994 (FAX)

    Paramount Resources Ltd.
    B.K. (Bernie) Lee
    Chief Financial Officer
    (403) 290-3600
    (403) 262-7994 (FAX)