Paramount Resources Ltd. announced production results for the first quarter of 2020. The Company has installed gas lift and related compression at pads near the southwest terminus of Paramount's gathering system. This work was done to mitigate the impact from newer higher-pressure wells upstream. Work is ongoing to mitigate current and future potential back-out issues in the Karr gathering system, as new production continues to be brought online. The bulk of these efforts are scheduled to be completed in third quarter of 2020. In the first quarter of 2020 the Company drilled 1 (1.0 net) Montney oil well at Ante Creek for Crown land retention purposes. A second land retention well that was planned to be drilled in 2020 prior to the Government of Alberta's announcement extending land expiries by one year will be deferred in reliance on this extension. The Company's crude oil terminal adjacent to the Kaybob North 8-9 gas plant continues to ramp-up operations smoothly with the capacity to handle growing Paramount and third-party volumes. Along with significant crude storage capability at this facility, Paramount is well positioned to take advantage of recent and anticipated price volatility in the crude and condensate markets in order to enhance Kaybob Region netbacks.

The company provides production guidance for the second and third quarters of 2020. Production in the second and third quarters of 2020 will be impacted by the temporary shut-in of certain offsetting wells due to completion activities at both the 12-18 and 2-1 pads. As these wells resume production and wells on the 12-18 and 2-1 pads are brought onstream, production at Karr is expected to increase through the second half of the year. A scheduled one-week outage in May at the third-party operated Karr 6-18 facility, in relation to expansion activities, is currently underway and will also impact second quarter volumes.