Paramount Resources Ltd. (TSX:POU) ("Paramount") has completed the acquisition
of ProspEx Resources Ltd. ("ProspEx") pursuant to an arrangement under the
Business Corporations Act (Alberta), with 99.9% of the ProspEx shares voted at
ProspEx's shareholders meeting in respect of the arrangement 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.


Paramount is a Canadian oil and natural gas exploration, development and
production company with operations focused in Western Canada. Paramount's Class
A Common Shares are listed on the Toronto Stock Exchange under the symbol "POU".


Paramount Resources (TSX:POU)
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