CALGARY,
AB, Jan. 29, 2025 /CNW/ - Paramount Resources
Ltd. ("Paramount" or the "Company") (TSX: POU) is pleased to
announce that the holders (the "Shareholders") of its class A
common shares (the "Common Shares") have today approved a special
resolution authorizing a reduction in the stated capital of
the Common Shares to enable the Company to make a return of capital
in cash to the Shareholders. The special resolution was
approved by the holders of 112,331,957 Common Shares, representing
97.29% of the 115,462,624 votes cast.
The Company intends to make a special cash distribution of
$15.00 per Common Share to the
Shareholders (the "Special Distribution") following the closing of
its previously announced asset sale to Ovintiv Inc. (the
"Transaction"). The Special Distribution is expected to be
comprised of a return of capital to Shareholders in the amount of
$12.00 per Common Share (the "Return
of Capital") and a special dividend in the amount of $3.00 per Common Share that will be designated as
an "eligible dividend" for Canadian income tax purposes. The
special resolution approved today authorizes the Company to make
the Return of Capital as part of the Special Distribution.
The declaration and payment of the Special Distribution remains
conditional on the closing of the Transaction. Approval of
the Transaction under the Investment Canada Act has been
received and the parties intend to close the Transaction as soon as
practicable.
The making of the Special Distribution is also subject to the
Board of Directors of Paramount formally declaring the Special
Distribution and setting a record date and payment date
therefor. The current intention of the Company is to declare
the Special Distribution immediately following the closing of the
Transaction.
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 class A common shares are listed on the
Toronto Stock Exchange under the symbol "POU".
ADVISORIES
Forward-looking Information
Certain statements in this press release constitute
forward-looking information under applicable securities
legislation. Forward-looking information typically contains
statements with words such as "anticipate", "believe", "estimate",
"will", "expect", "plan", "schedule", "intend", "propose", or
similar words suggesting future outcomes or an outlook.
Forward-looking information in this press release includes:
- the intended closing of the Transaction and the expected timing
thereof; and
- the intended declaration and payment of the Special
Distribution, including the amount thereof and the portion of which
will be comprised of a return of capital.
Such forward-looking information is based on a number of
assumptions which may prove to be incorrect, including the
assumption that the closing conditions to the Transaction will be
satisfied and the closing of the Transaction will occur as and when
anticipated. In addition, the payment of the Special
Distribution is subject to final approval by the Board of Directors
of the Company and the need to comply with requirements under debt
agreements and applicable laws respecting the declaration and
payment of dividends and distributions.
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. Forward-looking information is based on
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.
There is a risk that the Transaction will not be completed on
the terms anticipated or at all, including due to a closing
condition not being satisfied. Further, even if the
Transaction closes as anticipated, the Board of Directors of the
Company retains the discretion to determine how to use the proceeds
of the Transaction, not to declare or approve the Special
Distribution or any other future dividend or other distribution to
shareholders and, if a dividend or other distribution to
shareholders is declared or approved, determine the amount
thereof. There are no assurances as to the continuing
declaration and payment of future dividends or other distributions
to shareholders or the amount or timing of any such dividends or
other distributions to shareholders.
The forward-looking information contained in this press release
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.
SOURCE Paramount Resources Ltd.
