Paramount Energy Trust Announces Normal Course Issuer Bid for Its Units and Convertible Extendible Unsecured Subordinated Debentures



    
    TSX: PMT.UN, PMT.DB, PMT.DB.A,
    PMT.DB.B, PMT.DB.C
    

    CALGARY, Oct. 20 /CNW/ - Paramount Energy Trust ("Paramount") announced
today that the Toronto Stock Exchange ("TSX") has accepted Paramount's Notice
of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for
cancellation, from time to time, as Paramount considers advisable, (i) its
trust units (the "Units") (TSX:PMT.UN); (ii) its 8% convertible extendible
unsecured subordinated debentures with a maturity date of September 30, 2009
(the "8% Debentures") (TSX:PMT.DB); (iii) its 6.25% convertible extendible
unsecured subordinated debentures with a maturity date of June 30, 2010 (the
"6.25% A Debentures") (TSX:PMT.DB.A); (iv) its 6.25% convertible extendible
unsecured subordinated debentures with a maturity date of April 30, 2011 (the
"6.25% B Debentures") (TSX:PMT.DB.B); and (v) its 6.5% convertible extendible
unsecured subordinated debentures with a maturity date of June 30, 2012 (the
"6.5% Debentures") (TSX:PMT.DB.C) (collectively, the "Securities").
    As of the date hereof, the public float is 85,956,586 and the issued and
outstanding is 112,917,783 Units. Paramount intends to purchase for
cancellation up to a maximum of 8,595,659 of the Units, being approximately
10% of Paramount's "public float" outstanding on the date hereof, calculated
in accordance with the rules of the TSX. The maximum number of Units that may
be purchased on a daily basis is 126,309 Units (the average daily trading
volume for the past six months is 505,237 Units), except where purchases are
made in accordance with "block purchases" exemptions under applicable TSX
policy.
    As of the date hereof, the public float and the issued and outstanding is
5,866 8% Debentures. Paramount intends to purchase for cancellation up to a
maximum of $586,000 principal amount of the 8% Debentures (586 Debentures),
being approximately 10% of Paramount's "public float" outstanding on the date
hereof, calculated in accordance with the rules of the TSX. The maximum number
of 8% Debentures that may be purchased on a daily basis is 1 ($1,000 principal
amount) 8% Debentures (the average daily trading volume for the past six
months is 3 ($3,000 principal amount) 8% Debentures), except where purchases
are made in accordance with "block purchases" exemptions under applicable TSX
policy.
    As of the date hereof, the public float and the issued and outstanding is
55,271 6.25% A Debentures. Paramount intends to purchase for cancellation up
to a maximum of $5,527,000 principal amount of the 6.25% A Debentures (5,527
Debentures), being approximately 10% of Paramount's "public float" outstanding
on the date hereof, calculated in accordance with the rules of the TSX. The
maximum number of 6.25% A Debentures that may be purchased on a daily basis is
10 ($10,000 principal amount) 6.25% A Debentures (the average daily trading
volume for the past six months is 41 ($41,000 principal amount) 6.25% A
Debentures), except where purchases are made in accordance with "block
purchases" exemptions under applicable TSX policy.As of the date hereof, the
public float and the issued and outstanding is 99,822 6.25% B Debentures.
Paramount intends to purchase for cancellation up to a maximum of $9,982,200
principal amount of the 6.25% B Debentures (9,982 Debentures), being
approximately 10% of Paramount's "public float" outstanding on the date
hereof, calculated in accordance with the rules of the TSX. The maximum number
of 6.25% B Debentures that may be purchased on a daily basis is 26 ($26,000
principal amount) 6.25% B Debentures (the average daily trading volume for the
past six months is 105 ($105,000 principal amount) 6.25% B Debentures), except
where purchases are made in accordance with "block purchases" exemptions under
applicable TSX policy.
    As of the date hereof, the public float and the issued and outstanding is
74,825 6.5% Debentures. Paramount intends to purchase for cancellation up to a
maximum of $7,483,000 principal amount of the 6.5% Debentures (7,483
Debentures), being approximately 10% of Paramount's "public float" outstanding
on the date hereof, calculated in accordance with the rules of the TSX. The
maximum number of 6.25% A Debentures that may be purchased on a daily basis is
31 ($31,000 principal amount) 6.25% A Debentures (the average daily trading
volume for the past six months is 127 ($127,000 principal amount) 6.25% A
Debentures), except where purchases are made in accordance with "block
purchases" exemptions under applicable TSX policy.
    The price which Paramount will pay for any Securities purchased by it
will be the prevailing market price of the Securities on the TSX at the time
of such purchase. The actual number of Securities that may be purchased for
cancellation and the timing of any such purchases will be determined by
Paramount.
    The Bid will commence on October 22, 2008 and will terminate on October
21, 2009 or such earlier time as the Bid is completed or terminated at the
option of Paramount.
    Management of Paramount believes that, from time to time, the market
price of the Securities may not fully reflect the underlying value of the
Securities and that at such times the purchase of Securities would be in the
best interests of Paramount. Such purchases will increase the proportionate
interest of, and may be advantageous to, all remaining Security holders. In
addition, the purchases by Paramount may increase liquidity to Paramount's
Security holders wishing to sell their Securities.
    Paramount has not made purchases of the Securities during the previous 12
months nor have there been or are there any existing previous normal course
issuer bids in place during the previous 12 months.Paramount is a natural
gas-focused Canadian energy trust. Paramount trust units and convertible
debentures are traded on the Toronto Stock Exchange under the trading symbols
"PMT.UN", "PMT.DB", "PMT.DB.A", "PMT.DB.B" and "PMT.DB.C", respectively.
Further information with respect to Paramount can be found at its website at
www.paramountenergy.com.





For further information:

For further information: Paramount Energy Trust, Susan L. Riddell Rose,
President and Chief Executive Officer, (403) 269-4400; or Paramount Energy
Trust, Cameron R. Sebastian, Vice President, Finance and Chief Financial
Officer, (403) 269-4400; or Paramount Energy Trust, Sue M. Showers, Investor
Relations and Communications Advisor, (403) 269-4400, (403) 269-4444 (FAX); or
Paramount Energy Operating Corp, Administrator of Paramount Energy Trust,
Suite 3200, 605 - 5 Avenue SW Calgary, Alberta, T2P 3H5, Email:
info@paramountenergy.com, Website: www.paramountenergy.com


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