Paramount Energy Confirms June 2008 Distribution and Updates Hedging

    Paramount Energy Trust  TSX: PMT.UN, PMT.DB, PMT.DB.A, PMT.DB.B, PMT.DB.C

    CALGARY, June 19 /CNW/ - Paramount Energy Trust ("PET" or the "Trust")
to confirm that its distribution to be paid on July 15, 2008 in respect of
income received by PET for the month of June 2008, for Unitholders of record
on June 30, 2008, will be $0.10 per Trust Unit. The ex-distribution date is
June 26, 2008. The June distribution brings cumulative distributions paid
since the inception of the Trust to $12.524 per Trust Unit.Natural gas prices
remain highly volatile largely due to uncertainty regarding weather and its
effect on natural gas demand and storage, the global factors influencing LNG
shipments to North America as well as the sentiment controlling rapidly
changing crude oil markets. 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 at the AECO and NYMEX trading hubs as at June 19,
2008 are as follows:

                                 % of                 Forward
               Volumes at      Budget                   Price
    Type of        AECO(2) Production       Price          (4)
    contract        (GJ/d)         (3)      ($/GJ)      ($/GJ)          Term
    Financial      89,500                    7.65                  July 2008
    Physical       19,500                    8.56                  July 2008
     total AECO,
     net(1)       109,000          52        7.82       10.72      July 2008
     NYMEX         10,000                 7.70 US$                 July 2008
     total NYMEX,
     net(1)        10,000           5     7.70 US$   12.81 US$     July 2008
    Period total,
     net(1)       119,000          56                              July 2008
                                                                    August -
    Financial      82,000                    7.44               October 2008
                                                                    August -
    Physical       10,500                    7.10               October 2008
     total AECO,
     net(1)        92,500          44        7.40       10.94
    Financial                                                       August -
     NYMEX         10,000                 7.70 US$              October 2008
     total NYMEX,                                                   August -
     net(1)        10,000           5     7.70 US$   12.94 US$  October 2008
    Period total,                                                   August -
     net(1)       102,500          49                           October 2008
                                                             November 2008 -
    Financial      96,000                    7.77                 March 2009
                                                             November 2008 -
    Physical        2,500                    8.36                 March 2009
    Period total,                                            November 2008 -
     net(1)        98,500          47        7.79       11.78     March 2009
    Financial       5,000                   11.11               January 2009
    Period total,
     net(1)         5,000           2       11.11       11.83   January 2009
                                                                     April -
    Financial      40,000                    8.67               October 2009
    Period total,                                                    April -
     net(1)        40,000          19        8.67        9.77   October 2009
                                                             November 2009 -
    Financial      10,000                   10.21                 March 2010
    Period total,                                            November 2009 -
     net(1)        10,000           5       10.21       10.46     March 2010

    (1) Weighted average prices are calculated by netting the volumes of the
        financial and physical sold/bought contracts together and measuring
        the net volume at the weighted average "sold" price for the financial
        and physical contracts. Included in the November 2008 - March 2009
        volume summary is a collar to sell forward 5,000 GJ/d at a floor
        price of $7.00 per GJ at AECO and a ceiling price of $8.00 per GJ.
        The ceiling price is used in the weighted average price calculation.
    (2) All transactions at AECO unless identified specifically as a NYMEX
    (3) Includes actual and gas over bitumen deemed projected production
    (4) Average AECO monthly index for July through December 2008 as at
        June 19, 2008 is $11.11 per GJ.

    Based on current and forward market natural gas prices, PET's monthly
distribution is highly sustainable at the current level. Incorporating PET's
current hedging portfolio and the forward market for natural gas prices into
the Trust's production, operations and cash flow forecasts for 2008, the
current level of distribution annualized would result in an annual average
payout ratio of approximately 42 percent for 2008 and bank debt at year end of
less than $240 million. With current bank credit capacity of $410 million, PET
is considering expansion of its current 2008 spending plans to reinvest in
additional capital activity within its core operations or to pursue other new
venture opportunities. 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 changes in commodity price markets, operations and
future business development opportunities.

    Forward-Looking Information

    Certain information regarding PET in this news release, including
management's assessment of year end bank debt levels, production levels, cash
flows and payout ratios, 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 foregoing 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
( and at PET's website ( 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

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

For further information:

For further information: Paramount Energy Trust, Susan Riddell Rose,
President and Chief Executive Officer, (403) 269-4400; or Paramount Energy
Trust, Cam Sebastian, Vice President, Finance and Chief Financial Officer,
(403) 269-4400; or Paramount Energy Trust, Sue 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:,

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