Closed - Mirage/Saddle Hills, & Sunrise

Close Pending - Harmattan 

Still Available - Puskwa, Ante Creek, Pembina, & Cutbank  

2017 Paramount Property Offering

Paramount Resources Ltd. (“Paramount”) has retained CB Securities Inc. (“CB Securities”) as its exclusive advisor for the sale of several of its non-core properties.  This is an invitation to submit a Non-Binding Bid by March 22, 2017.

The Properties

Ante Creek / Goose River

  • Current net production is 98 BOE/day, consisting of 7.0 Bbls/day of oil, 4.5 Bbls/day of condensate, 3.0 Bbls/day of ethane, propane, and butane, and 500 Mcf/day of sales gas from 6.5 net (7 gross) wells, plus ~6 BOE/day of royalty interest volumes
  • Upside to infill drill the Wabamun
    • Existing vertical well commenced production at 250 Bbls/day and has cumulatively produced 226 MBbls
    • Potential to horizontally drill on Sections 21 and 28-67-22 W5M
  • Upside to develop the Paddy (Viking equivalent)
    • Offset well produced 4.6 Bcf from 1,200 metres depth
  • Upside to develop the Debolt and Gething
  • Significant facilities and gas gathering system ownership reduces the royalties payable through gas cost allowance
  • Potential water disposal project using existing wells and infrastructure

Pembina

  • Current net production is 57 BOE/day from 4.5 net wells
  • 75% average working interest in 20.5 sections of land
  • Glauconitic marine bar potential in 49-03 W5M
  • Lithic Glauconitic Channel play in 48-03 W5M for horizontal well in low permeability/porosity sand
  • Single well battery facilities and gas gathering system ownership

Crooked Creek / Puskwa

  • Current net production is 135 BOE/day, consisting of 124 Bbls/day of oil, 2 Bbls/day of condensate, 6 Bbls/day of ethane, propane, and butane, and 25 Mcf/day of sales gas from 1.5 net (5 gross) wells, plus 1 Bbl/day of royalty interest volumes
  • Upside to vertically infill drill the Beaverhill Lake (4.5 sections of interest land within pool outlines) and optimize the waterflood
  • Overall property operating costs are $11/BOE including the non-producing wells
  • Multi-zone potential (Montney, Beaverhill Lake, Duvernay)
  • 18% to 100% in 9.25 sections of interest land
  • Available Crown land in the area

Cutbank

  • Paramount holds an average 57% working interest in 20 units of contiguous operated land
  • Standing, completed well c-47-B/93-P-8 with multi-zone potential:
    • Conventional Montney turbidite reservoir
    • Tupper-type Upper Montney unconventional shale gas reservoir
    • Thick Doig and Halfway reservoir sandstones uphole
  • Develop the Montney and Doig horizontally in the area (on interest land and available Crown land)
  • 3-D seismic is available
  • Lease upgraded for year-round access (including bridge and road)
  • Good access to infrastructure in the area

Please click link above to see attachment

Additional detailed information on the property is provided in the Non-Confidential Offering Circular.  Execution of a Confidentiality Agreement will allow potential purchasers to gain access to the Data Book and the Virtual Data Room.  Please contact info@cbsecurities.com to receive either document.


Offering Procedure

Each interested party is asked to submit a Non-Binding Bid by noon on Wednesday, March 22, 2017 to the attention of CB Securities.  From the Non-Binding Bids received Paramount will identify the parties with whom to work toward concluding a transaction.

Paramount and CB Securities make no representation or warranty as to the accuracy or completeness of the information provided in connection with this Offering.  Each potential purchaser should rely on its own investigation and due diligence to satisfy itself as to all matters relating to this Offering.  Only those representations or warranties expressly agreed to in an executed Purchase and Sale Agreement between Paramount and the successful purchaser shall be binding on Paramount.

Paramount and CB Securities reserve the right to modify the timing, procedures, and terms and conditions of this Offering, or to terminate this Offering at any time.  Paramount also reserves the right to accept or reject any or all offers at its sole discretion for any reason whatsoever.

Prospective purchasers wishing to participate in this Offering are requested to direct their inquiries to Darryl Derouin at (403) 781-7041 or email at info@cbsecurities.com.