CALGARY,
AB, July 4, 2023 /CNW/ - Paramount Resources
Ltd. ("Paramount" or the "Company") (TSX: POU) is pleased to advise
that it has successfully restored all but approximately 2,500 Boe/d
of the production that had been curtailed as a result of the
Alberta wildfires. The Company now
expects first half 2023 average sales volumes to be approximately
92,500 Boe/d compared to previous guidance of 96,000 to 101,000
Boe/d. Paramount is working to restore the last of the curtailed
production and continues to assess the residual impact of the
wildfires arising from interruptions to maintenance and development
activities.
Paramount also announces that the Toronto Stock Exchange (the
"TSX") has accepted the Company's notice to renew its normal course
issuer bid ("NCIB") for its class A common shares ("Common
Shares"). The renewal of the NCIB provides the Company with
the continued flexibility to increase shareholder returns through
the repurchase of Common Shares at times when management believes
that the market price of the Common Shares does not reflect their
underlying value.
The NCIB will commence on July 6,
2023 and is due to expire on July 5,
2024. Paramount may purchase up to 7,661,980 Common Shares
under the NCIB, representing 10% of the public float of 76,619,800
Common Shares as of June 23, 2023.
Under TSX rules, a maximum of 80,918 Common Shares may be
purchased under the NCIB in any one day, representing 25% of the
average daily trading volume of the Common Shares on the TSX for
the six months ended May 31, 2023 of
323,672 Common Shares. Paramount may also make one block purchase
per calendar week which exceeds the daily purchase restriction,
subject to the rules of the TSX. The actual number of Common
Shares that will be purchased under the NCIB and the timing of any
such purchases will be subject to market conditions and Paramount's
free cash flow allocation priorities. Purchases of Common Shares
under the NCIB will be made through the facilities of the TSX
or alternative Canadian trading systems at the market price at the
time of purchase. Any Common Shares acquired under the NCIB
will be cancelled.
The Company was authorized to purchase up to 7,626,260 Common
Shares under its previous NCIB, which expired on June 29, 2023. Paramount did not purchase any
Common Shares under the previous NCIB.
In addition, the Company announces that its Board of Directors
has declared a cash dividend of $0.125 per Common Share that will be payable on
July 31, 2023 to shareholders of
record on July 17, 2023. The dividend
will be designated as an "eligible dividend" for Canadian income
tax purposes.
About Paramount
Paramount is an independent, publicly traded, liquids-rich
natural gas 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 Common Shares
are listed on the Toronto Stock Exchange under the symbol
"POU".
www.paramountres.com
ADVISORIES
The expected first half 2023 average sales volumes and the
potential payment of future dividends under the Company's monthly
dividend program would be considered forward-looking information
under applicable securities legislation. 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. Such
forward-looking information is based on a number of assumptions
which may prove to be incorrect, including: (i) in the case of the
expected first half 2023 average sales volumes, assumptions as to
the accuracy of certain field estimates of production and (ii) in
the case of the potential payment of future dividends, assumptions
as to the Company's future free cash flow, operating results,
capital requirements and financial position. The stated expected
first half 2023 average sales volumes are a preliminary estimate
that is subject to change and there is a risk that the final
reported first half 2023 average sales volumes differ significantly
from the stated expected volumes. 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 future dividends by
the Company or the amount or timing of any such dividends. For more
information relating to risks, see "Risk Factors" in
Paramount's annual information form for the year ended December 31, 2022, 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.
SOURCE Paramount Resources Ltd.