Paramount Energy Trust Confirms June Distribution and Extends Offer for Profound



    
    TSX: PMT.UN, PMT.DB, PMT.DB.A,
    PMT.DB.B, PMT.DB.C
    PINK SHEETS: PMGYF
    

    CALGARY, June 15 /CNW/ - Paramount Energy Trust (TSX:PMT.UN) ("PET" or
the "Trust") is pleased to confirm that its distribution to be paid on July
15, 2009 in respect of income received by PET for the month of June 2009, for
Unitholders of record on June 30, 2009, will be $0.05 per Trust Unit. The
ex-distribution date is June 26, 2009. The June distribution brings cumulative
distributions paid since the inception of the Trust to $13.464 per Trust Unit.

    Extension of Profound Offer

    On April 24, 2009, 1463072 Alberta Ltd., an indirect wholly-owned
subsidiary of PET, mailed a take-over bid circular and offer (the "Offer") to
shareholders of Profound Energy Inc. ("Profound"). On June 1, 2009, the
initial expiry date of the Offer, the Offer was extended to 8:00 a.m. (Calgary
time) on June 15, 2009 (the "Expiry Time"). As at the Expiry Time,
approximately 56.8% of the outstanding common shares of Profound (the "Common
Shares"), including Common Shares issuable on exercise of outstanding stock
options, had been tendered to the Offer or acquired by PET through market
purchases as contemplated by the Offer. In addition, PET owns special warrants
(the "Special Warrants') to acquire 9,224,310 Common Shares Each special
warrant is convertible into one Common Share, subject to adjustment. Common
Shares tendered to the Offer in combination with Common Shares currently owned
by PET and its subsidiaries and Common Shares that would be owned by PET upon
conversion of the Special Warrants represent approximately 65.2% of the Common
Shares on a fully diluted basis. As the minimum tender condition, being 66
2/3% of the Common Shares outstanding on a fully-diluted basis has not been
satisfied, PET has extended the expiry time of the Offer to 8:00 a.m. (Calgary
Time) on June 29, 2009, to allow Profound shareholders an additional
opportunity to tender their Common Shares to the Offer. A notice of extension
will be mailed to Profound shareholders.
    In the event the conditions to the Offer are satisfied at 8:00 a.m.
(Calgary time) on June 29, 2009, PET intends to take up and pay that day for
all deposited Common Shares. To the extent that PET takes up and pays for
Common shares under the offer by June 30, 2009 and Profound shareholders
thereby become Unitholders of record of PET by June 30 2009, through electing
to receive PET Trust Units and/or through proration under the Offer, such
Profound shareholders will become eligible to receive the June distribution
payable on July 15, 2009 on the PET Trust Units. Assuming that either all
Profound shareholders tendered to the Cash Alternative under the Offer or all
Profound shareholders tendered to the Unit Alternative under the Offer, and
based on the maximum cash permitted, the Maximum Unit Consideration and
Profound's in-the-money Options, each Profound shareholder would be entitled
to receive approximately $0.395 in cash and approximately 0.278 of a PET Trust
Unit for each Common Share tendered This would result in depositing Profound
shareholders receiving a distribution on their PET Trust Units for the month
of June equivalent to approximately $0.0139 per Profound Common Share. PET's
closing price on Friday, June 12, 2009 of $4.90 per Unit equates to an
equivalent market price for Profound shares of $1.76 per share, representing a
premium of 171% from the Profound share price immediately prior to the
announcement of the Offer on March 31, 2009 of $0.65 per Common Share.
    Shareholders of Profound and other investors are urged to read the
take-over bid circular, the related directors' circular and the notice of
extension. These documents, as well as any amendments and supplements to them
and any other relevant document filed or to be filed with Canadian securities
regulatory authorities contain important information.
    PET has retained Kingsdale Shareholder Services Inc. as information agent
for the Offer. Shareholders may obtain a copy of the take-over bid circular,
the related letter of transmittal and election form, notice of guaranteed
delivery, the directors' circular and certain other offer documents at
www.sedar.com. In addition, any questions or requests for assistance or
further information on how to tender common shares to the Offer, may be
directed to and copies of the above referenced documents may be obtained by
contacting the information agent at 1-888-518-6554 or by email at
contactus@kingsdaleshareholder.com.

    DRIP Participation

    The Trust also confirms that there will continue to be no Trust Units
available under its Distribution Reinvestment and Optional Trust Unit Purchase
Plan ("DRIP") for the June 2009 distribution and until further notice.
Unitholders that had elected to participate in the DRIP in the past and were
currently enrolled will receive cash distributions on the payment date. Should
the Trust elect to reinstate the DRIP, Unitholders that were enrolled at
suspension and remain enrolled at reinstatement will automatically resume
participation in the DRIP. PET's distribution policy remains unchanged.

    Hedging Update

    Natural gas prices continue to be highly volatile. PET closely monitors
the market drivers with respect to natural gas prices and will continue to
proactively manage the Trust's forward price exposure to mitigate risk.
Financial and physical forward sales arrangements (net of related financial
and physical fixed-price natural gas purchase contracts) at the AECO and NYMEX
trading hubs as at June 11, 2009 are as follows:

    
    -------------------------------------------------------------------------
                                                         Current
                             % of 2009                   Forward
    Type of    Volumes at     Forecast        Price       Price
    Contract   AECO (GJ/d)   Production(3)   ($/GJ)(1)  ($/GJ)(2)       Term
    -------------------------------------------------------------------------
                                                                       July -
    Financial     112,500                       4.17            October 2009
    -------------------------------------------------------------------------
                                                                       July -
    Period Total  112,500          60           4.17     3.55   October 2009
    -------------------------------------------------------------------------
                                                              November 2009 -
    Financial     110,000                       7.89              March 2010
    -------------------------------------------------------------------------
                                                              November 2009 -
    Period Total  110,000          59           7.89     5.63     March 2010
    -------------------------------------------------------------------------
                                                                      April -
    Financial     107,500                       7.24            October 2010
    -------------------------------------------------------------------------
                                                                      April -
    Period Total  107,500          58           7.24     5.84   October 2010
    -------------------------------------------------------------------------
                                                              November 2010 -
    Physical       10,000                       7.75              March 2011
    -------------------------------------------------------------------------
                                                              November 2010 -
    Financial     107,500                       7.78     7.00     March 2011
    -------------------------------------------------------------------------
                                                              November 2010 -
    Period Total  117,500          63           7.77              March 2011
    -------------------------------------------------------------------------
    Financial      30,000                       6.47
    -------------------------------------------------------------------------
                                                                      April -
    Period Total   30,000          16           6.47     6.64   October 2011
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The Trust also has fixed price sales contracts at the NYMEX trading hub
fro the month of August totaling 15,000 MMBTU/d at an average price of $3.95
per MMBTU, and contracts at the AECO trading hub for the month of October
totaling 15,000 GJ/d at an average price of $3.73 per GJ.

    
    -------------------------------------------------------------------------
                                                      Current
                           % of 2009       Strike     Forward
    Type of   Volumes at    Forecast       Price       Price
    Contract  AECO (GJ/d)  Production(3)  ($/GJ)(1)  ($/GJ)(2)           Term
    -------------------------------------------------------------------------

    Sold Call     5,000        3            8.50        5.63  November 2009 -
                                                                   March 2010
    -------------------------------------------------------------------------
    Sold Call    20,000       11            7.25        6.00        January -
                                                                December 2010
    -------------------------------------------------------------------------
    Sold Call     5,000        3            7.75        5.84          April -
                                                                 October 2010
    -------------------------------------------------------------------------
    Sold Call    12,500        6            9.00        7.00  November 2010 -
                                                                   March 2011
    -------------------------------------------------------------------------
    (1) Weighted average prices are calculated by netting the volumes of the
    lowest-priced financial and physical sold/bought contracts together and
    measuring the net volume at the weighted average "sold" price for the
    remaining financial and physical contracts.
    (2) Average AECO forward price for July through December 2009 as at June
    12 is $3.65 per GJ.
    (3) Calculated using 188,000 GJ/d and includes actual and gas over
    bitumen deemed projected production volumes.
    

    At current AECO forward prices of $3.65 per GJ for the remainder of 2009,
the Trust's current monthly distribution level and capital expenditure program
can be funded completely through funds flow. Incorporating PET's current
hedging portfolio and forward natural gas prices into the Trust's production,
adjusted for the production curtailments described above, operations and funds
flow projections, the current level of distribution represents a payout ratio
of approximately 39 percent for 2009. PET reviews distributions on a monthly
basis. The Trust continues to focus on what we believe is a sustainable
distribution model that balances short term cash returns to our Unitholders
and long term value creation through capital reinvestment. PET reviews
distributions on a monthly basis. Future distributions are subject to change
as dictated by commodity price markets, operations and future business
development opportunities.

    Production Curtailments

    With the significant downturn in natural gas prices, PET has undertaken a
detailed analysis of the economic attributes of all of its properties in order
to identify opportunities to preserve value through voluntary production
curtailments. In certain cases properties are generating minimal cash flows
and there is an expected gain in present value through the deferral of
production until prices stabilize. Production deferral has the additional
benefit of preserving reserves and the related lending value under the Trust's
bank credit facility. Not all properties are suitable candidates for temporary
shut-in due to operational considerations, amount of fixed operating costs,
processing, joint venture and transportation arrangements. The Trust currently
has or will soon have approximately 15 MMcf/d of production temporarily
shut-in. PET will continue to monitor market conditions but assuming that the
shut-in persists through October the Trust's estimate of 2009 average
production would be reduced to approximately 160 MMcf/d.

    Forward-Looking Information

    Certain information regarding PET in this news release including
management's assessment of future plans and operations may constitute
forward-looking statements under applicable securities laws and necessarily
involve risks including, without limitation, risks associated with gas
exploration, development, exploitation, production, marketing and
transportation, changes to the proposed royalty regime prior to implementation
and thereafter, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, capital expenditure costs, including drilling, completion and
facilities costs, unexpected decline rates in wells, delays in projects and/or
operations resulting from surface conditions, wells not performing as
expected, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources. As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are cautioned that the
forgoing list of factors is not exhaustive. Additional information on these
and other factors that could affect PET's operations and financial results are
included in reports on file with Canadian securities regulatory authorities
and may be accessed through the SEDAR website (www.sedar.com) and at PET's
website (www.paramountenergy.com). Furthermore, the forward-looking statements
contained in this news release are made as at the date of this news release
and PET does not undertake any obligation to update publicly or to revise any
of the forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.

    Non-GAAP Measures

    This news release contains financial measures that may not be calculated
in accordance with generally accepted accounting principles in Canada
("GAAP"). Readers are referred to advisories and further discussion on
non-GAAP measures contained in the "Significant Accounting Policies and
non-GAAP Measures" section of management's discussion and analysis.

    PET is a natural gas-focused Canadian energy trust. PET's Trust Units and
convertible debentures are listed on the Toronto Stock Exchange under the
symbol "PMT.UN" and "PMT.DB", "PMT.DB.A", "PMT.DB.B" and "PMT.DB.C",
respectively. Further information with respect to PET can be found at its
website at www.paramountenergy.com.

    
    The Toronto Stock Exchange has neither approved nor disapproved the
    information contained herein.
    





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, Fax: (403) 269-4444; 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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