Topic: How To Invest

Pat: Do you have any thoughts on Paramount Energy Trust? It seems to have attracted some attention of late, despite depressed gas prices. Many thanks.

Article Excerpt

Paramount Energy Trust, $3.48, symbol PMT.UN on Toronto (Units outstanding: 113 million; Market cap: $393.1 million), is a Calgary-based energy trust. Natural gas makes up about 99% of Paramount’s production. Paramount Energy Trust was created from a 2003 spinoff of some of Paramount Resources’ (symbol POU on Toronto) mature gas properties. The trust began trading on Toronto at $12 a unit in February 2003. Paramount Energy has seven core properties, all of which are in Alberta. These are divided into two districts. The Northern District includes operations at West Side, East Side and Athabasca. The Southern District is comprised of Birchwavy East, Birchwavy West, East Central Alberta and the assets of Severo Energy. Paramount has a 93% stake in Severo, which is a private company that operates in central Alberta. Paramount also has minor assets in southern Alberta and southwestern Saskatchewan. Paramount Energy specializes in shallow natural gas production. Its wells range from 200 to 700 metres in depth. Shallow wells…