Paramount Resources Ltd. Completes Flow-Through Share Offering

Charttechnisch scheint der Abwärtstrend durchbrochen. News: 02:34 EDT Thursday, May 10, 2007 CALGARY, ALBERTA--(CCNMatthews - May 10, 2007) - Paramount Resources Ltd. (TSX:POU) ("Paramount" or the "Company") is pleased to announce its financial and operating results for the three months ended March 31, 2007. FIRST QUARTER 2007 HIGHLIGHTS - On January 12, 2007, Paramount successfully completed the spinout of MGM Energy Corp. ("MGM Energy"). As of March 31, 2007, Paramount owned 51.7 percent of the issued and outstanding shares of MGM Energy, and as a result, MGM Energy's financial position, results of operations and cash flows have been included in Paramount's consolidated results. - Funds flow from operations for the first quarter of 2007 totaled $42.8 million as compared to $26.1 million for the fourth quarter of 2006. The 64 percent increase in funds flow from operations is primarily a result of an $11.9 million increase in realized gains on financial instruments, a $9.1 million decrease in cash stock-based compensation payments, and a $5.7 million increase in petroleum and natural gas sales, partially offset by increased operating costs in the period. - Paramount's net loss for the first quarter of 2007 was $16.1 million as compared to a net loss of $159.6 million recorded for the fourth quarter of 2006. The first quarter 2007 net loss included dry hole expense of $47.6 million. This expense related primarily to the winter drilling program undertaken by Paramount's subsidiary, MGM Energy, where two wells were drilled on lands subject to the farm-in agreement: Kumak I-25 and Unipkat M-45. A total of $39.8 million of dry hole expense was recorded in respect of these wells in the first quarter of 2007. The impact of the dry hole expense was partially offset by dilution gains of approximately $24.7 million, before tax, in respect of MGM Energy. - Sales volumes for the first quarter of 2007 averaged 17,773 Boe/d as compared to 17,104 Boe/d for the fourth quarter of 2006. The increase in sales volumes resulted primarily from new production being brought on stream in the Kaybob and Southern Corporate Operating Units. These increases were partially offset by production declines in the Grande Prairie Corporate Operating Unit. - Capital expenditures totaled $186.8 million for the first quarter of 2007, including $29.1 million incurred by MGM Energy from January 12, 2007 to March 31, 2007, and $10.8 million incurred in the development of the company's oil sands leases in the Surmont area.