2010-04-09-2010-03-10

To acquire west-central Alberta assets, gaining 4.6MMBOE proved.

Paramount Energy Trust (Toronto: PMT) plans to acquire assets in the Edson area of west-central Alberta from Crew Energy Inc., Calgary, (Toronto: CR) for C$126 million.

The assets contain 4.6 million proved barrels of oil equivalent for an acquisition price of approximately C$27.39 per proved barrel.

Production, which targets the Rock Creek, Bluesky, Ellerslie, Viking, Blueridge, Notikewin, Second White Specks and Beaverhill Lake formations, averages 1,700 barrels of oil equivalent per day (79% gas).

Paramount will also gain extensive gathering and processing infrastructure and undeveloped lands in the multi-zone part of the western Canadian sedimentary basin.

As part of the acquisition, Paramount will farm in on 19,900 net acres of undeveloped Cardium rights. The farm-in includes a two-well horizontal drilling commitment, with each company receiving 50% of the net interest in eight sections.

In conjunction with the acquisition, Paramount will privately place 10.5 million subscription receipts at C$4.75 each for proceeds of C$50 million to a syndicate of underwriters led by BMO Capital Markets.

The transaction is expected to close by April 1.

Paramount president and chief executive Sue Riddell Rose says, "This is another strategic acquisition for [Paramount] in west-central Alberta, further expanding our operating base and enhancing our production with high-quality, liquids-rich gas while also increasing our inventory of higher impact resource-style prospects."