2009-08-12-2007-07-01-2007-08-01

Reserves: 269.1 Bcfe

Paramount Energy Trust, Calgary, (Toronto: PMT-UN) and Baytex Energy Trust, Calgary, (Toronto: BTE-UN) have closed the acquisition of the remaining Canadian E&P operations of Dominion, Richmond, Va., (NYSE: D) for approximately C$667 million (US$624 million). Paramount has acquired assets in east-central Alberta in the Mannville, Duvernay, Warwick, Bruce and southeastern Birchwavy areas for C$392 million. Production is 47 million cubic feet of gas equivalent per day (7,800 barrels of oil equivalent). Proved and probable reserves are 269.1 billion cubic feet equivalent (44.8 million barrels equivalent, 96% gas). Paramount's production has increased to 207 million cubic feet of gas equivalent per day. Proved and probable reserves will increase to 527.8 billion cubic feet equivalent. The assets are valued at C$43,725 per flowing barrel equivalent and C$7.62 per proved and probable barrel equivalent according to Paramount. Baytex has acquired assets on 64,000 net acres in the Pembina and Lindbergh areas of Alberta for C$238 million in cash. Production is approximately 4,500 barrels of oil equivalent per day. Proved reserves are approximately 11.7 million barrels equivalent (77% oil) and proved and probable reserves are 19.6 million barrels equivalent (83% oil). Pro forma, Baytex's production will increase to 38,500 barrels equivalent per day. The assets are valued at C$52,500 per flowing barrel equivalent, C$19.36 per proved barrel equivalent and C$11.56 per proved and probable barrel according to Baytex. Dominion chairman, president and chief executive Thomas F. Farrell says, "This announcement represents another step toward achieving our goal of refocusing Dominion on the power-generation and energy-distribution, -transmission, -storage and retail businesses. When the transition is completed, the company's risk profile will be substantially reduced, earnings growth should be less volatile and our capital structure will be even stronger." Dominion plans to divest all of its E&P operations except those in the Appalachian Basin. On April 30, it agreed to sell virtually all of its offshore E&P operations in the Gulf of Mexico for approximately US$4.76 billion to ENI Petroleum Co. Inc., a subsidiary of ENI SpA, Rome (NYSE: E). Proceeds from the sale will position Dominion to reduce debt, buy back shares and grow other Dominion businesses. Scotia Waterous and Juniper Advisory LP were financial advisors to Dominion, BMO Capital Markets was financial advisor to Paramount and TD Securities Inc. was financial advisor to Baytex.