Paramount Resources Stock

Paramount Resources Ltd., an independent liquids-focused Canadian energy company, explores for and develops both conventional and unconventional petroleum and natural gas reserves and resources.

The company’s oil and gas properties are located primarily in Alberta and British Columbia. The company's ongoing exploration, development and production activities are intended to discover new reserves, increase the productive capacity of existing fields, and extract, process and sell the company’s natural gas, NGLs (natural gas liquids, including pentanes-plus (or condensate) (C5+), ethane (C2), propane (C3) and butane (C4)), and oil economically and safely. The company furthers its exploration, development, and production activities through acquisitions of petroleum and natural gas assets and companies, farm-ins, farm-outs, joint ventures, and dispositions.

The company’s operations are organized into the following three regions:

The Grande Prairie Region, located in the Peace River Arch area of Alberta, which focuses on Montney developments at Karr and Wapiti.

The Kaybob Region, located in west-central Alberta, which includes the Kaybob North and Ante Creek Montney oil developments; Duvernay developments at Kaybob Smoky, Kaybob North and Kaybob South; and other shale gas and conventional natural gas producing properties.

The Central Alberta and Other Region, which includes the Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin and at Birch in northeast British Columbia.

Grande Prairie Region

As of December 31, 2020, the company had approximately 255,000 gross (175,000 net) acres of land in the Grande Prairie Region, including approximately 98,000 net acres of Montney rights and approximately 65,000 net acres of Deep Basin Cretaceous rights, which partially overlap the Montney rights.

The primary focus in the Grande Prairie Region is the Karr and Wapiti Montney properties, located southeast of Grande Prairie, Alberta, in the over-pressured, liquids-rich Deep Basin Montney trend. Sales volumes for this Region averaged 31,076 barrels of oil equivalent per day (Boe/d) in 2020 (comprised 77.2 millions of cubic feet per day (MMcf/d) of shale gas; 1.4 MMcf/d of conventional natural gas; 17,955 barrels per day (Bbl/d) of NGLs; and 14 Bbl/d of light and medium crude oil).

Karr

The company is developing its Montney property at Karr, producing natural gas and liquids from horizontal wells drilled on multi-well pads. In 2020, the company drilled 15 (15.0 net) Montney wells, completed 15 (15.0 net) wells and brought 15 (15.0 net) wells on production. It also completed the drilling of a water disposal well, recompleted a second water disposal well and brought both wells into service.

Wapiti

The company is developing its Montney property at Wapiti, which is located to the northwest of the Karr development, producing natural gas and liquids from horizontal wells drilled on multi-well pads. In 2020, the company drilled 8 (8.0 net) Montney wells, completed 5 (5.0 net) wells and brought on production 6 (6.0 net) wells.

Kaybob Region

As of December 31, 2020, the company had approximately 1.171 million gross (869,000 net) acres of land in the Kaybob Region, including approximately 272,000 net acres of Montney rights and approximately 200,000 net acres of Duvernay rights.

The Kaybob Region includes the Kaybob North and Ante Creek Montney oil developments; and the Kaybob Smoky, Kaybob South, and Kaybob North Duvernay developments. Sales volumes for the Kaybob Region averaged 28,685 Boe/d in 2020 (comprised 43.8 MMcf/d of shale gas; 82.1 MMcf/d of conventional natural gas; 4,697 Bbl/d of NGLs; and 3,010 Bbl/d of light and medium crude oil and tight oil).

Natural gas production is processed both at the company’s facilities, including the Kaybob 8-9 natural gas processing plant and Smoky 6-16 natural gas processing plant, and at third-party operated processing facilities under long-term, firm-service processing arrangements. Oil and certain other liquids production were processed through Paramount’s 12-10 crude oil terminal and battery, which has sour fluid handling capacity of 20,000 Bbl/d.

In 2020, the company drilled 1 (1.0 net) Montney oil appraisal well at Ante Creek.

Central Alberta and Other Region

As of December 31, 2020, the company had approximately 2.024 million gross (987,000 net) acres of land in the Central Alberta and Other Region, including shale gas holdings in the Horn River Basin and at Birch in northeast British Columbia; and approximately 71,000 net acres of Duvernay rights at Willesden Green.

Sales volumes for the Central Alberta and Other Region averaged 8,579 Boe/d in 2020 (comprised 35.7 MMcf/d of shale gas; 8.5 MMcf/d of conventional natural gas; 1,007 Bbl/d of NGLs; and 207 Bbl/d of light and medium crude oil and tight oil). As of December 31, 2020, the company drilled and completed 5 (5.0 net) horizontal wells at Willesden Green to delineate the Duvernay resource potential of this property.

In 2020, 1 (0.5 net) well was completed at the non-operated Birch property in British Columbia.

Cavalier Energy Inc.

Cavalier Energy Inc. (Cavalier Energy) is a wholly-owned subsidiary of the company. As of December 31, 2020, Cavalier Energy held approximately 1.354 million gross (1.307 million net) acres of land located primarily in the Athabasca and Peace River regions of Alberta, 45,000 gross (45,000 net) acres of which are due to expire in 2021.

Fox Drilling Limited Partnership

Fox Drilling Limited Partnership owns seven triple-sized rigs, including four walking rigs, which are used to drill the company’s wells.

Other Strategic Investments

The company holds approximately 103,000 (86,000 net) acres of undeveloped land in the Liard Basin in northeast British Columbia and the Northwest Territories prospective for natural gas production from the Besa River shale formation; and approximately 483,000 (207,000 net) acres of undeveloped land in the Mackenzie Delta and at Central Mackenzie in the Northwest Territories prospective for natural gas and oil production.

As of December 31, 2020, the company’s land base, not including lands held by Cavalier Energy, encompassed approximately 3.451 million gross (2.030 million net) acres in Western Canada. Approximately 2.583 million gross (1.477 million net) acres of this land had no attributed reserves as of December 31, 2020.

As of December 31, 2020, the company held approximately 159,000 gross (132,000 net) acres of land due to expire in 2021.

History

Paramount Resources Ltd. was founded in 1976.