Paramount Energy Trust Confirms October 2007 Distribution


    CALGARY, Oct. 18 /CNW/ - Paramount Energy Trust (TSX:PMT.UN) ("PET" or
the "Trust") confirmed today that its distribution to be paid on November 15,
2007 in respect of income received by PET for the month of October 2007, for
Unitholders of record on October 31, 2007, will be $0.10 per Trust Unit. The
ex-distribution date is October 29, 2007. The October 2007 distribution brings
cumulative distributions paid since the inception of the Trust in February
2003 to $11.724 per Trust Unit.
    Natural gas prices are currently stronger than those realized through
much of the third quarter of 2007. Late summer cooling demand reduced the year
over year surplus gas in storage somewhat, leading to stronger spot gas prices
as capacity still remains in storage prior to the winter heating season. PET
continues to remain cautious in its outlook with respect to near term natural
gas prices. The Trust continues to firmly 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 spending programs.
    PET continues to actively manage its risk management program. Financial
and physical forward sales arrangements at the AECO and NYMEX trading hubs as
at October 17, 2007 are as follows:

                         Volumes        % of         Forward
    Type of           at AECO (2)    Current  Price    Price
    contract               (GJ/d) Production  ($/GJ)   ($/GJ)           Term
                                                             November 2007 -
    Financial             67,500              7.39                March 2008
                                                             November 2007 -
    Physical              10,500              7.43                March 2008
    Period total,                                            November 2007 -
     net (1)              78,000      40      7.40     6.37       March 2008
                                                                     April -
    Financial             55,000              7.40              October 2008
                                                                     April -
    Physical               5,000              6.68              October 2008
    Period total AECO,                                               April -
     net (1)              60,000              7.34     6.44     October 2008
                                                                     April -
    Financial NYMEX        7,500          7.78 US$              October 2008
    Period total NYMEX,                                              April -
     net (1)               7,500          7.78 US$ 7.80 US$     October 2008
                                                                     April -
    Period total, net (1) 67,500      35                        October 2008
                                                             November 2008 -
    Financial             52,500              7.84                March 2009
                                                             November 2008 -
    Physical               7,500              8.36                March 2009
                                                             November 2008 -
    Period total, net (1) 60,000      31      7.90     7.34       March 2009
                                                                   January -
    Financial              7,500              7.46             December 2008
                                                                   January -
    Physical               2,500              7.45             December 2008
                                                                   January -
    Period total, net (1) 10,000       5      7.46     6.54    December 2008

    (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.
    (2) All transactions at AECO unless identified specifically as a NYMEX

    In addition to the mark to market gains inherent in the existing hedge
book of approximately $30 million, PET has realized gains totaling
approximately $50.7 million to-date in 2007 on financial and physical forward
sales contracts including the crystallization of forward positions. PET will
continue to closely monitor the market drivers with respect to near term
natural gas prices and will proactively manage the Trust's forward price
    Based on current natural gas prices, PET expects to maintain monthly
distributions at the current level for the foreseeable future. PET reviews
distributions on a monthly basis based on cash flow projections which
incorporate PET's base production forecasts, current hedges and physical
forward natural gas sales, the forward market for natural gas prices, and the
Trust's capital spending program and projected production additions. Future
distributions are subject to change as dictated by changes in commodity price
markets, operations and future business development opportunities.

    Forward-looking Information

    This news release contains forward-looking information. Implicit in this
information, particularly in respect of cash distributions, are assumptions
regarding natural gas prices, production, royalties and expenses which,
although considered reasonable by PET at the time of preparation, may prove to
be incorrect. These forward-looking statements are based on certain
assumptions that involve a number of risks and uncertainties and are not
guarantees of future performance. Actual results could differ materially as a
result of changes in PET's plans, changes in commodity prices, general
economic, market, regulatory and business conditions as well as production,
development and operating performance and other risks associated with oil and
gas operations. There is no guarantee by PET that actual results achieved will
be the same as those forecast herein.

    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 the Trust's Management's Discussion and
    Mcf equivalent (Mcfe) may be misleading, particularly if used in
isolation. In accordance with National Instrument 51-101 ("NI 51-101"), an
Mcfe conversion ratio for oil of 1 Bbl: 6 Mcf has been used, which is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not necessarily represent a value equivalency at the wellhead.

    Paramount Energy Trust is a natural gas-focused Canadian energy trust.
PET's Trust Units and Convertible Debentures are listed on the Toronto Stock
Exchange under the symbols "PMT.UN", "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; 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) 269-6336 (FAX); or
Paramount Energy Operating Corp, Administrator of Paramount Energy Trust,
Suite 500, 630 - 4 Avenue SW, Calgary, AB, T2P 0J9, Email:, Website:

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