CALGARY,
AB, Sept. 1, 2022 /CNW/ - Paramount Resources
Ltd. ("Paramount" or the "Company") (TSX: POU) is pleased to
announce that its Board of Directors has declared a cash dividend
of $0.10 per common share that will
be payable on September 29, 2022 to
shareholders of record on September
15, 2022. The dividend will be designated as an
"eligible dividend" for Canadian income tax
purposes.
The Company is also pleased to announce the closing of its
previously announced $68.5 million
Willesden Green Duvernay acquisition. The acquisition adds
approximately 90,000 net acres, over 200 internally estimated
drilling locations and approximately 1,700 Boe/d (55% liquids) of
current production to the Willesden Green core area.
The previously announced $63
million disposition of certain non-core infrastructure
assets is on track to close in the fourth quarter.
About Paramount
Paramount is an independent, publicly traded, liquids-focused
Canadian energy company that explores for and develops both
conventional and unconventional petroleum and natural gas,
including longer-term strategic exploration and pre-development
plays, and holds a portfolio of investments in other
entities. The Company's principal properties are located in
Alberta and British
Columbia. Paramount's Class A common shares are listed on the
Toronto Stock Exchange under the symbol "POU".
www.paramountres.com
ADVISORIES
Forward-looking
Information
Certain statements or information in this press release
respecting the following matters constitute forward-looking
information under applicable securities legislation:
- the payment of future dividends under the Company's monthly
dividend program;
- internally estimated drilling locations associated with the
Willesden Green acquisition; and
- the expected closing of the non-core infrastructure disposition
and timing thereof.
Such forward-looking information is based on a number of
assumptions which may prove to be incorrect. Assumptions have been
made with respect to the following matters:
- with respect to the payment of future dividends, assumptions as
to the Company's future free cash flow, operating results, capital
requirements and financial position;
- with respect to the internally estimated drilling locations
associated with the Willesden Green acquisition, the matters
referred to under "Drilling Locations" below; and
- with respect to the expected closing of the non-core
infrastructure disposition, the satisfaction of all closing
conditions and the closing of the disposition as anticipated.
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, including the risks and uncertainties
described below.
There are risks that may result in the Company changing,
suspending or discontinuing its monthly dividend program, including
changes to free cash flow, operating results, capital requirements,
financial position, market conditions or corporate strategy and the
need to comply with requirements under debt agreements and
applicable laws respecting the declaration and payment of
dividends. There are no assurances as to the continuing
declaration and payment of any future dividends under the Company's
monthly dividend program or the amount or timing of any such
dividends.
There are risks and uncertainties respecting the internally
estimated drilling locations associated with the Willesden Green
acquisition that are described further under "Drilling
Locations" below.
There is a risk that the non-core infrastructure disposition
will not be completed on the terms anticipated or at all, including
due to a closing condition not being satisfied.
For more information relating to risks, see "Risk
Factors" in Paramount's annual information form for the
year ended December 31, 2021, which
is available on SEDAR at www.sedar.com.
Any forward-looking information is provided as of the date
hereof and, except as required by applicable securities law,
Paramount undertakes no obligation to update publicly or revise any
forward-looking information, whether as a result of new
information, future events or otherwise.
Oil and Gas Measures and
Definitions
In this press release, "Boe" means barrels of oil equivalent and
"Boe/d" means barrels of oil equivalent per day. Natural gas
equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil when
converting natural gas to Boe. Equivalency measures may be
misleading, particularly if used in isolation. A conversion ratio
of six thousand cubic feet of natural gas to one barrel of oil is
based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the well head. For the six months ended June 30, 2022, the value ratio between crude oil
and natural gas was approximately 25:1. This value ratio is
significantly different from the energy equivalency ratio of 6:1.
Using a 6:1 ratio would be misleading as an indication of
value.
Drilling
Locations
This press release contains information respecting Paramount's
internal estimate of Duvernay
drilling locations associated with the Willesden Green
acquisition. The referenced drilling locations represent
future potential undeveloped gross locations as estimated effective
December 31, 2021 by internal
qualified reserves evaluators from Paramount. The referenced
drilling locations were determined by Paramount's internal
evaluators based on, among other matters, their assessment of
available reservoir, geological and technical information, the
economic thresholds necessary for development and potential future
development plans. There is no certainty that the Company
will drill any of the identified future potential undeveloped
locations and there is no certainty that such locations will result
in any reserves or production. The locations on which the
Company will actually drill wells, including the number and timing
thereof, will be dependent upon the availability of funding,
regulatory approvals, seasonal restrictions, oil, NGLs and natural
gas prices, costs, actual drilling results, additional reservoir,
geological and technical information that is obtained and other
factors. While certain of the estimated undeveloped locations have
been de-risked by drilling existing wells in relative close
proximity to such locations, many of the locations are further away
from existing wells where management has less information about the
characteristics of the reservoir and therefore there is more
uncertainty as to whether wells will be drilled in such locations,
and if wells are drilled in such locations there is more
uncertainty that such wells will result in any reserves or
production. There is no guarantee that any internally
estimated future potential development locations will be included
and assigned reserves in any future reserves report prepared for
the Company.
Additional information respecting the Company's oil and gas
properties and operations is provided in the Company's annual
information form for the year ended December
31, 2021 which is available on SEDAR at www.sedar.com.
SOURCE Paramount Resources Ltd.