2009-09-21-2009-03-31-2009-08-13

Bought company with 47,000 acres in AB Montney play, gaining 3,000 BOE/d.

Paramount Energy Trust, Calgary, (Toronto: PMT-UN) has closed its acquisition of Profound Energy Inc., Calgary, (Toronto: PFX) in a deal valued at approximately C$112.9 million in cash, units and assumed debt. Paramount issued either C$1.34 in cash, 0.394 Paramount unit or a combination of approximately C$0.395 in cash or 0.278 trust unit per Profound share. Paramount issued approximately 10.6 million units valued at approximately C$36.4 million, C$15 million in cash and assumed C$61.5 million in debt. The deal was structured where Profound merged with Paramount's subsidiary 1463072 Alberta Ltd. The new entity also is named Profound Energy Inc. Profound has assets in west-central Alberta, including 77.75 net sections (47,000 net acres) of crown lands prospective for the Montney, Halfway, Doig and Nikinassin formations. Production is approximately 3,000 barrels of oil equivalent (18 million cubic feet of gas equivalent) per day. Paramount now has production of 32,167 barrels equivalent per day. Proved and probable reserves increased 15% to 560.7 billion cubic feet equivalent (93 million barrels equivalent). The trust's reserves to production ratio increased by approximately 4% to a reserve life index of eight years. Paramount president and chief executive Sue Riddell Rose says, "This is an important strategic acquisition for Paramount, providing not only solid base production but also an operating foothold in the Pembina area with exposure to resource style gas plays that provide an attractive supplement to our prospect inventory." Profound president and CEO Bill Davis says, "The acquisition of Profound by Paramount provides an excellent opportunity for shareholders to benefit from a premium offer as well as share in the exciting potential of the combined PET and Profound assets." BMO Capital Markets is financial advisor to Paramount. FirstEnergy Capital Corp. is financial advisor to Profound.