Press Release: Paramount Resources Ltd. Announces Planned Post-Transaction Special Distribution, Dividend Policy and Guidance

      including the expected timing of completion of phase one and phase two of 
      the Alhambra Plant and the expected capacity of the Alhambra Plant upon 
      completion of each phase; and 
 
   -- the Company's expectation that similar levels of capital expenditures in 
      2026 to those contemplated in the Post-Transaction Budget would enable it 
      to exit 2026 with production in excess of 60,000 Boe/d (50% liquids). 

Such forward-looking information is based on a number of assumptions which may prove to be incorrect.

All of the forward-looking information is based on the assumption that the closing conditions to the Transaction will be satisfied and the closing of the Transaction will occur as and when anticipated. In addition, the payment of the Special Distribution is subject to the receipt of the Shareholder Approval and the payment of the Special Distribution and any other future dividend or other distribution to shareholders is subject to final approval by the Board of Directors of the Company and the need to comply with requirements under debt agreements and applicable laws respecting the declaration and payment of dividends and distributions.

The forward-looking information concerning: (i) planned capital expenditures in 2025 under the Post-Transaction Budget and the allocation thereof, (ii) expected average sales volumes for 2025 and the 2025 exit rate of production under the Post-Transaction Budget, (iii) planned and potential exploration, development and production activities, including the expected timing of completion of phase one and phase two of the Alhambra Plant and the expected capacity of the Alhambra Plant upon completion of each phase and (iv) the Company's expectation that similar levels of capital expenditures in 2026 to those contemplated in the Post-Transaction Budget would enable it to exit 2026 with production in excess of 60,000 Boe/d (50% liquids) is, additionally, based on assumptions that have been made with respect to the following matters, in addition to any other assumptions identified in this press release:

   -- future commodity prices; 
 
   -- the impact of international conflicts, including in Ukraine and the 
      Middle East; 
 
   -- royalty rates, taxes and capital, operating, general & administrative and 
      other costs; 
 
   -- foreign currency exchange rates, interest rates and the rate and impacts 
      of inflation; 
 
   -- general business, economic and market conditions; 
 
   -- the performance of wells and facilities; 
 
   -- the availability to Paramount of the funds required for exploration, 
      development and other operations and the meeting of commitments and 
      financial obligations; 
 
   -- the ability of Paramount to obtain equipment, materials, services and 
      personnel in a timely manner and at expected and acceptable costs to 
      carry out its activities; 
 
   -- the ability of Paramount to secure adequate processing, transportation, 
      fractionation, disposal and storage capacity on acceptable terms and the 
      capacity and reliability of facilities; 
 
   -- the ability of Paramount to obtain the volumes of water required for 
      completion activities; 
 
   -- the ability of Paramount to market its production successfully; 
 
   -- the ability of Paramount and its industry partners to obtain drilling 
      success (including in respect of anticipated sales volumes, reserves 
      additions, product yields and product recoveries) and operational 
      improvements, efficiencies and results consistent with expectations; 
 
   -- the timely receipt of required governmental and regulatory approvals; 
 
   -- the application of regulatory requirements respecting abandonment and 
      reclamation; and 
 
   -- anticipated timelines and budgets being met in respect of: (i) drilling 
      programs and other operations, including well completions and tie-ins, 
      (ii) the construction, commissioning and start-up of new and expanded 
      third-party and Company facilities, pipelines and other infrastructure, 
      including the first and second phases of the Alhambra Plant, and (iii) 
      facility turnarounds and maintenance. 

Although Paramount believes that the expectations reflected in such forward-looking information are reasonable based on the information available at the time of this press release, undue reliance should not be placed on the forward-looking information as Paramount can give no assurance that such expectations will prove to be correct. Forward-looking information is based on expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Paramount and described in the forward-looking information.

There is a risk that the Transaction will not be completed on the terms anticipated or at all, including due to a closing condition not being satisfied. Further, even if the Transaction closes as anticipated, Shareholder Approval may not be obtained to permit the Special Distribution. In addition, the Board of Directors of the Company retains the discretion to determine how to use the proceeds of the Transaction, not to declare or approve the Special Distribution or any other future dividend or other distribution to shareholders and, if a dividend or other distribution to shareholders is declared or approved, determine the amount thereof. There are no assurances as to the continuing declaration and payment of future dividends or other distributions to shareholders or the amount or timing of any such dividends or other distributions to shareholders.

With respect to the forward-looking information concerning: (i) planned capital expenditures in 2025 under the Post-Transaction Budget and the allocation thereof, (ii) expected average sales volumes for 2025 and the 2025 exit rate of production under the Post-Transaction Budget, (iii) planned and potential exploration, development and production activities, including the expected timing of completion of phase one and phase two of the Alhambra Plant and the expected capacity of the Alhambra Plant upon completion of each phase and (iv) the Company's expectation that similar levels of capital expenditures in 2026 to those contemplated in the Post-Transaction Budget would enable it to exit 2026 with production in excess of 60,000 Boe/d (50% liquids), the material risks and uncertainties also include, but are not limited to:

   -- fluctuations in commodity prices; 
 
   -- changes in capital spending plans and planned exploration and development 
      activities; 
 
   -- changes in foreign currency exchange rates, interest rates and the rate 
      of inflation; 
 
   -- the uncertainty of estimates and projections relating to future 
      production, product yields (including condensate to natural gas ratios), 
      revenue, free cash flow, reserves additions, product recoveries, royalty 
      rates, taxes and costs and expenses; 
 
   -- the ability to secure adequate processing, transportation, fractionation, 
      disposal and storage capacity on acceptable terms; 
 
   -- operational risks in exploring for, developing, producing and 
      transporting natural gas and liquids, including the risk of spills, leaks 
      or blowouts; 
 
   -- risks associated with wildfires, including the risk of physical loss or 
      damage to wells, facilities, pipelines and other infrastructure, 
      prolonged disruptions in production, restrictions on the ability to 
      access properties, interruption of electrical and other services and 
      significant delays or changes to planned development activities and 
      facilities maintenance; 
 
   -- the ability to obtain equipment, materials, services and personnel in a 
      timely manner and at expected and acceptable costs, including the 
      potential effects of inflation and supply chain disruptions; 
 
   -- potential disruptions, delays or unexpected technical or other 
      difficulties in designing, developing, expanding or operating new, 
      expanded or existing facilities, pipeline and other infrastructure, 
      including third-party facilities and phase one and phase two of the 
      Alhambra Plant; 
 
   -- processing, transportation, fractionation, disposal and storage outages, 
      disruptions and constraints; 
 
   -- potential limitations on access to the volumes of water required for 
      completion activities due to drought, conditions of low river flow, 
      government restrictions or other factors; 
 
   -- risks and uncertainties involving the geology of oil and gas deposits; 
 
   -- the uncertainty of reserves estimates; 
 
   -- general business, economic and market conditions; 
 
   -- the ability to generate sufficient cash from operating activities to fund, 
      or to otherwise finance, planned exploration, development and operational 
      activities and meet current and future commitments and obligations 
      (including asset retirement obligations, processing, transportation, 
      fractionation and similar commitments and obligations); 
 
   -- changes in, or in the interpretation of, laws, regulations or policies 
      (including environmental laws); 
 
   -- the ability to obtain required governmental or regulatory approvals in a 
      timely manner, and to obtain and maintain leases and licenses, including 
      those required for phase one and phase two of the Alhambra Plant; 
 
   -- the effects of weather and other factors including wildlife and 
      environmental restrictions which affect field operations and access; 
 
   -- uncertainties as to the timing and cost of future abandonment and 
      reclamation obligations and potential liabilities for environmental 
      damage and contamination; 
 
   -- uncertainties regarding Indigenous claims and in maintaining 
      relationships with local populations and other stakeholders; 
 
   -- the outcome of existing and potential lawsuits, regulatory actions, 
      audits and assessments; and 
 

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December 18, 2024 17:00 ET (22:00 GMT)