Paramount Energy Trust advises of ERCB interim gas over bitumen shut-in order
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The ERCB will order the interim shut-in of gas production effective
PET has 70 wells that are specifically named for interim shut-in. Production in respect of these wells in
In 2004 and 2005 the Government of Alberta enacted amendments to the royalty regulation with respect to natural gas ("Royalty Regulation"), which provide a mechanism whereby the Government may prescribe additional royalty components to effect a reduction in the royalty calculated through the Crown royalty system for operators of gas wells which have been denied the right to produce by the ERCB as a result of certain bitumen conservation decisions. PET expects that the royalty reductions provided in the Royalty Regulation will apply to any gas production shut in pursuant to this ERCB decision. At the current forward market for natural gas prices, and assuming the royalty reductions are applicable and that the same wells are ordered shut in, PET believes that the potential shut in as a result of a final disposition of the Applications will not have a material impact on the future funds flow of the Trust.
Forward-Looking Information
Certain information regarding PET in this news release may constitute forward-looking statements under applicable securities laws. The forward-looking information includes, without limitation, statements regarding impact from the shut-in of facilities, the applicability of royalty reductions, and impact on future funds flow. Various assumptions were used in drawing the conclusions or making the forecasts and projections contained in the forward-looking information contained in this press release, which assumptions are based on management analysis of historical trends, experience, current conditions and expected future developments pertaining to PET and the industry in which it operates as well as certain assumptions as specifically outlined in the release above. Forward-looking information is based on current expectations, estimates and projections that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by PET and described in the forward-looking information contained in this press release. Undue reliance should not be placed on forward-looking information, which is not a guarantee of performance and is subject to a number of risks or uncertainties. Readers are cautioned that the foregoing list of risk factors is not exhaustive. Forward-looking information is based on the estimates and opinions of PET's management at the time the information is released and PET disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or otherwise, other than as expressly required by applicable securities laws.
PET is a natural gas-focused Canadian energy trust. PET's Trust Units and convertible debentures are listed on the
The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.
For further information: Paramount Energy Trust, Susan L. Riddell Rose, President and Chief Executive Officer; Paramount Energy Trust, Cameron R. Sebastian, Vice President, Finance and Chief Financial Officer; Paramount Energy Trust, Sue M. Showers, Investor Relations and Communications Advisor; Paramount Energy Operating Corp., Administrator of Paramount Energy Trust, Suite 3200, 605 - 5 Avenue SW, Calgary, Alberta, T2P 3H5, (403) 269-4400, (403) 269-4444 (FAX), Email: [email protected], Website: www.paramountenergy.com
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