Paramount Resources Ltd. First Quarter 2013 Results, Sales Volumes Increase 20%, Musreau Deep Cut Facility on Schedule for Late

Third-Quarter Commissioning 
CALGARY, ALBERTA -- (Marketwired) -- 05/07/13 -- Paramount Resources
Ltd. (TSX:POU) 
Principal Properties 

--  Paramount achieved record sales volumes of 23,600 Boe/d in March 2013,
    the highest since the spin-out of Trilogy in 2005, despite 800 Boe/d of
    property dispositions and 2,000 Boe/d of third party disruptions. 
--  First quarter 2013 sales volumes increased 20 percent from the first
    quarter of 2012 to 22,591 Boe/d. Kaybob COU sales volumes increased 46
    percent to 14,156 Boe/d. 
--  Netbacks increased 38 percent to $31.1 million in the first quarter of
    2013 from $22.5 million in the first quarter of 2012 as a result of
    higher sales volumes and higher natural gas prices. 
--  Construction of the Company's wholly-owned 200 MMcf/d deep cut facility
    at Musreau (the "Musreau Deep Cut Facility") remains on-schedule and in-
    line with budget. Commissioning is scheduled to commence towards the end
    of the third quarter of 2013. 
--  Advance drilling for the deep cut facility expansions at Musreau and
    Smoky continued. The Company currently has an inventory of 45 (35.5 net)
    Kaybob Deep Basin wells awaiting startup of the new facilities. 
--  In the first quarter of 2013, the Company sold its remaining US
    properties for US$21.8 million and properties in the Bistcho area of
    Alberta and the Cameron Hills area of the Northwest Territories for net
    proceeds of $9.1 million. The Company continues to rationalize its asset
    base to focus on the opportunities that generate the best returns. 
Strategic Investments                                                       
--  Four of Fox Drilling's rigs are drilling through break-up in the Kaybob
    COU. Both of the new walking rigs are currently drilling on multi-well
    pad sites. 
--  Paramount's wholly-owned subsidiary, Cavalier Energy Inc., continued
    with front-end engineering and design work for the first phase of the
    Hoole Grand Rapids project. These activities are being funded with
    drawings on Cavalier's $40 million credit facility. 
--  The Company's shale gas exploratory well at Patry is expected to be
    tied-in later in the year. Drilling operations at Dunedin were suspended
    in March due to warm weather, and will resume after break-up.  
--  At March 31, 2013, Paramount had cash balances of $48.0 million and its
    credit facility was undrawn.  
--  Corporate segment general and administrative costs per Boe decreased 16
    percent to $1.48 in the first quarter of 2013 compared to $1.77 in the
    first quarter of 2012.  
FINANCIAL AND OPERATING HIGHLIGHTS(1)(2)                                    
($ millions, except as noted)                                               
Three months ended March 31                   2013         2012    % Change 
Petroleum and natural gas sales               61.3         54.7          12 
Funds flow from operations                    16.6         12.8          30 
 Per share - diluted ($/share)                0.18         0.15          20 
Net income                                     0.4        124.5        (100)
 Per share - basic ($/share)                     -         1.46             
 Per share - diluted ($/share)                   -         1.42             
Exploration and development                                                 
 expenditures                                145.2        142.2           2 
Investments in other entities -                                             
 market value(3)                             719.6        675.6           7 
Total assets                               2,076.5      1,810.9          15 
Net debt(4)                                  857.9        474.0          81 
Common shares outstanding (thousands)       90,130       85,569           5 
Sales volumes                                                               
 Natural gas (MMcf/d)                        113.6         88.6          28 
 NGLs (Bbl/d)                                2,662        1,652          61 
 Oil (Bbl/d)                                   998        2,386         (58)
 Total (Boe/d)                              22,591       18,813          20 
Average realized price                                                      
 Natural gas ($/Mcf)                          3.47         2.77          25 
 NGLs ($/Bbl)                                73.78        78.57          (6)
 Oil ($/Bbl)                                 84.37        89.21          (5)
 Total ($/Boe)                               30.16        31.95          (6)
Net wells drilled (excluding oil                                            
 sands evaluation)                               9           11         (18)
Net oil sands evaluation wells                                              
 drilled                                         6            1         500 
(1) Readers are referred to the advisories concerning non-GAAP measures and 
    oil and gas definitions in the Advisories section of this document.     
(2) Amounts include the results of discontinued operations. Refer to        
    Paramount's Management's Discussion and Analysis for the three months   
    ended March 31, 2013.                                                   
(3) Based on the period-end closing prices of publicly traded enterprises   
    and the book value of the remaining investments.                        
(4) Net debt is a non-GAAP measure, it is calculated and defined in the     
    Liquidity and Capital Resources section of Paramount's Management's     
    Discussion and Analysis for the three months ended March 31, 2013.      

Paramount's 2013 capital budget for exploration and development
("E&D") and Strategic Investments remains at approximately $550
million, excluding land acquisitions and capitalized interest. E&D
spending will focus primarily on the Kaybob COU's Deep Basin
development. Construction of the Musreau Deep Cut Facility is
progressing on-schedule for completion in the fourth quarter and
construction of the third-party Smoky Deep Cut Facility will continue
into 2014. Drilling activities are continuing in the Kaybob COU
through breakup in preparation for the start-up of the deep cut
facilities. Strategic Investment capital spending will be directed
towards shale gas exploration activities in the Liard Basin and
continued front-end engineering and design work for the initial phase
of the Hoole Grand Rapids development within Cavalier Energy.  
Sales volumes for the second and third quarters of 2013 are expected
to range between 21,000 Boe/d and 25,000 Boe/d, depending upon the
availability of downstream NGLs transportation and processing
capacity. Sales volumes are expected to increase in the fourth
quarter once the expansion of a third-party NGLs pipeline is
completed, additional fractionation capacity is secured and the
Musreau Deep Cut Facility is on-stream.  
After the Musreau Deep Cut Facility starts up in late-2013, the
Company will have owned and firm-service contracted natural gas
processing capacity of 279 MMcf/d, which will increase to over 300
MMcf/d in 2014 with the addition of the Smoky Deep Cut Facility.
Corporate production is expected to ramp up in 2014 to over 50,000
Boe/d, with the timing dependent on the completion of downstream
fractionation facilities expansions in which Paramount has secured
long-term firm service capacity.  
Paramount Resources Ltd. is a Canadian oil and natural gas
exploration, development and production company with operations
focused in Western Canada. Paramount's common shares are listed on
the Toronto Stock Exchange under the symbol "POU".  
A copy of the Company's first quarter 2013 report, including
Management's Discussion and Analysis and the unaudited Interim
Condensed Consolidated Financial Statements, can be obtained at  
This information will also be made available through:  
Paramount's website at:  
SEDAR at:  
Certain statements in this document constitute forward-looking
information under applicable securities legislation. Forward-looking
information typically contains statements with words such as
"anticipate", "believe", "estimate", "expect", "plan", "schedule",
"intend", "propose", or similar words suggesting future outcomes or
an outlook. Forward looking information in this document includes,
but is not limited to: 

--  expected production and sales volumes and the timing thereof; 
--  exploration, development and strategic investment plans and strategies
    and the anticipated costs, timing, and results thereof; 
--  budget allocations and capital spending flexibility; 
--  the availability and adequacy of facilities to process, fractionate and
    transport natural gas and NGLs production; 
--  the scope, timing, and cost of proposed new facilities and facilities
    expansions and the expected capacity and benefits of such facilities; 
--  the timing and scope of the anticipated development of oilsands,
    carbonate bitumen, and shale gas assets; 
--  business strategies and objectives; 
--  sources of and plans for funding Paramount's exploration, development,
    facilities and other expenditures; 
--  acquisition and disposition plans; and 
--  expected drilling programs, well tie-ins, facility construction and
    expansions, completions and the timing, scope and results thereof.

Such forward-looking information is based on a number of assumptions
which may prove to be incorrect. The following assumptions have been
made, in addition to any other assumptions identified in this

--  future oil, gas, NGLs, and bitumen prices and general economic,
    business, and market conditions; 
--  the ability to obtain required capital, through access to capital
    markets and other means, to finance  exploration and development
    activities and new and expanded facilities; 
--  the ability to obtain equipment, services, supplies and personnel in a
    timely manner and at an acceptable cost to carry out activities; 
--  the ability to market oil, natural gas, NGLs and bitumen successfully to
    current and new customers; 
--  the ability to secure adequate product processing, fractionation,
    transportation and storage; 
--  the ability of Paramount and its industry partners to obtain drilling
    success and production levels consistent with expectations, including
    with respect to anticipated reserves additions and NGLs yields; 
--  the timely receipt of required regulatory approvals; 
--  expected timelines and budgets being met and anticipated results
    achieved, in respect of facilities and infrastructure development; 
--  anticipated rates of return from existing and planned projects relative
    to other opportunities; 
--  estimates of input and labour costs; and 
--  currency exchange and interest rates.  

Although Paramount believes that the expectations reflected in such
forward looking information is reasonable, undue reliance should not
be placed on it as Paramount can give no assurance that such
expectations will prove to be correct. Forward-looking information is
based on current 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. These risks and
uncertainties include, but are not limited to: 

--  fluctuations in oil, natural gas, NGLs and bitumen prices and commodity
    price differentials; 
--  fluctuations in foreign currency exchange rates and interest rates; 
--  the uncertainty of estimates and projections relating to future revenue,
    future production, NGLs yields, costs and expenses and the timing
--  the ability to secure adequate product processing, de-ethanization,
    fractionation, transportation and storage; 
--  uncertainties associated with exploration and  development drilling and
    related activities; 
--  operational risks in exploring for, developing and producing oil,
    natural gas, NGLs and bitumen and the timing thereof; 
--  the ability to obtain equipment, services, supplies and personnel in a
    timely manner and at an acceptable cost; 
--  potential disruptions, unexpected technical difficulties or other
    constraints in designing, developing, operating or utilizing new,
    expanded or existing facilities, including third-party facilities; 
--  risks and uncertainties involving the geology of oil and gas deposits; 
--  the uncertainty of reserves and resource estimates; 
--  the ability to generate sufficient cash flow from operations and obtain
    other sources of financing at an acceptable cost to fund planned
    operational, exploration and development activities, including costs of
    anticipated new and expanded facilities and other projects, and to meet
    current and future obligations; 
--  the ability to fulfill pipeline transportation, processing, de-
    ethanization and fractionation commitments; 
--  changes to, or in the interpretation or application of, laws,
    regulations or policies; 
--  changes in environmental laws including potential emission reduction
    obligations and fracing regulations; 
--  the receipt, timing, and scope of governmental or regulatory approvals; 
--  potential title defects affecting Paramount's properties; 
--  uncertainties regarding aboriginal land claims and co-existing with
    local populations and stakeholders; 
--  the effects of weather; 
--  the timing and cost of future abandonment and reclamation activities; 
--  clean-up costs or business interruptions resulting from environmental
    damage and contamination; 
--  the ability to enter into or continue leases; 
--  existing and potential lawsuits and regulatory actions; 
--  general economic, business and market conditions; 
--  industry wide pipeline, processing, de-ethanization and fractionation
    constraints; and 
--  other risks and uncertainties described elsewhere in this document and
    in Paramount's other filings with Canadian securities authorities.  

The foregoing list of risks is not exhaustive. Additional information
concerning these and other factors which could impact Paramount, its
operations and its financial condition are included in Paramount's
most recent Annual Information Form. The forward-looking information
contained in this document is made 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
statements or information, whether as a result of new information,
future events or otherwise. 
In this document "Funds flow from operations", "Funds flow from
operations per share - diluted", "Netback", "Net Debt", "Exploration
and development expenditures" and "Investments in other entities -
market value", collectively the "Non-GAAP measures", are used and do
not have any standardized meanings as prescribed by International
Financial Reports Standards.  
Funds flow from operations refers to cash from operating activities
before net changes in operating non-cash working capital, geological
and geophysical expenses and asset retirement obligation settlements.
Funds flow from operations is commonly used in the oil and gas
industry to assist management and investors in measuring the
Company's ability to fund capital programs and meet financial
obligations. Netback equals petroleum and natural gas sales less
royalties, operating costs, production taxes and transportation
costs. Netback is commonly used by management and investors to
compare the results of the Company's oil and gas operations between
periods. Net Debt is a measure of the Company's overall debt position
after adjusting for certain working capital amounts and is used by
management to assess the Company's overall leverage position. Refer
to the liquidity and capital resources section of Management's
Discussion and Analysis for the calculation of Net Debt. Exploration
and development expenditures refer to capital expenditures and
geological and geophysical costs incurred by the Company's COUs
(excluding land and acquisitions). The exploration and development
expenditure measure provides management and investors with
information regarding the Company's Principal Property spending on
drilling and infrastructure projects, separate from land acquisition
activity. Investments in other entities - market value reflects the
Company's investments in enterprises whose securities trade on a
public stock exchange at their period end closing price (e.g.
Trilogy, MEG Energy, MGM Energy and others), and investments in all
other entities at book value. Paramount provides this information
because the market values of equity-accounted investments, which are
significant assets of the Company, are often materially different
than their carrying values.  
Non-GAAP measures should not be considered in isolation or construed
as alternatives to their most directly comparable measure calculated
in accordance with GAAP, or other measures of financial performance
calculated in accordance with GAAP. The Non-GAAP measures are
unlikely to be comparable to similar measures presented by other
This document contains disclosures expressed as "Boe" and "Boe/d".
All oil and natural gas equivalency volumes have been derived using
the ratio of six thousand cubic feet of natural gas to one barrel of
oil. 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. The term "liquids" is used to
represent oil and natural gas liquids.  
During the first quarter of 2013, the value ratio between crude oil
and natural gas was approximately 24:1. 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. 
Paramount Resources Ltd.
J.H.T. (Jim) Riddell
President and Chief Operating Officer
(403) 290-3600 
Paramount Resources Ltd.
B.K. (Bernie) Lee
Chief Financial Officer
(403) 290-3600
(403) 262-7994 (FAX)
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