Paramount Energy Confirms September 2008 Distribution and Updates Hedging


    CALGARY, Sept. 19 /CNW/ - Paramount Energy Trust (TSX:PMT.UN) ("PET" or
the "Trust") is pleased to confirm that its distribution to be paid on October
15, 2008 in respect of income received by PET for the month of September 2008,
for Unitholders of record on September 30, 2008, will be $0.10 per Trust Unit.
The ex-distribution date is September 26, 2008. The September distribution
brings cumulative distributions paid since the inception of the Trust to
$12.824 per Trust Unit.
    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 meet PET's strategy
of protecting the level of the Trust's monthly distributions and managing the
balance sheet, enhancing or protecting the economics of acquisitions and
capital programs, and capitalizing on perceived market anomalies. Financial
and physical forward sales arrangements at the AECO and NYMEX trading hubs as
at September 19, 2008 are as follows:

                                % of         Current
                 Volumes       2008E         Forward
    Type of      at AECO  Production Price   Price(4)
    contract    (2)(GJ/d)         (3)($/GJ)    ($/GJ)                   Term
    Financial     82,000              7.41                      October 2008
    Physical      10,500              6.93                      October 2008
    Period total,
     net (1)      92,500          43  7.36      5.94            October 2008
                                                              November 2008 -
    Financial     96,000              7.79                       March 2009
                                                              November 2008 -
    Physical       2,500              8.22                       March 2009
    Period total,                                             November 2008 -
     net (1)      98,500          46  7.80      7.21             March 2009
    Financial     87,500              8.45              April - October 2009
    Period total,
     net (1)      87,500          41  8.45      7.48    April - October 2009
                                                              November 2009 -
    Financial     55,000              9.22                       March 2010
    Period total,                                             November 2009 -
     net (1)      55,000          25  9.22      8.37             March 2010
    Financial     20,000              7.60              April - October 2010
    Period total,
     net (1)      20,000           9  7.60      7.54    April - October 2010
    (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. 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 current forward price is used in the
        weighted average price calculation for this collar.
    (2) All transactions at AECO unless identified specifically as a NYMEX
    (3) Calculated using 205 MMcf/d and includes actual and gas over bitumen
        deemed projected production volumes.
    (4) Average AECO forward price for October through December 2008 as at
        September 19, 2008 is $6.60 per GJ.

    Based on current and forward market natural gas prices, PET's current
monthly distribution level is highly sustainable. Incorporating PET's current
hedging portfolio and forward natural gas prices into the Trust's production,
operations and cash flow forecasts for 2008, the current level of distribution
represents a payout ratio of approximately 48 percent for the remainder of
2008 and bank debt at year end of less than $290 million drawn on current bank
credit capacity of $410 million. 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.
    PET's Board of Directors have approved an expansion to the Trust's 2008
capital budget to provide for reinvestment in additional capital activity
within its core operations and to pursue other new venture opportunities.
Currently the Trust intends to spend $133 million in 2008, or $115 million net
of proceeds from non-core minor property dispositions closed in 2008 to date
of $17.1 million, an increase of six percent on a net basis from the
previously approved $108 million. 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

    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, capital spending plans 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

    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 L. Riddell Rose,
President and Chief Executive Officer, (403) 269-4400, (403) 269-4444 (FAX) or
Paramount Energy Trust, Cam Sebastian, Vice President, Finance and Chief
Financial Officer, (403) 269-4400 or Paramount Energy Trust, Sue Showers,
Investor Relations & Communications Advisor, (403) 269-4400 (403) 269-4444
(FAX) or Paramount Energy Operating Corp, Administrator of Paramount Energy
Trust, Suite 3200, 605 - 5 Avenue S.W. Calgary, Alberta T2P 3H5, Email:, Website:

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