1

May 8, 2009

Power to Perform

2009First Quarter

Results

This presentation contains forward-looking statements that may be

identified by words like “forecast”, “estimated”, “expected” or similar expressions. These forward looking statements are based on certain

assumptions that involve a number of risks and uncertainties and are not

guarantees of future performance. Actual results could differ materially as a result of changes in PET’s plans, changes in commodity prices,

regulatory changes, general economic, market and business conditions as well as production, development and operating performance and other

risks associated with oil and gas operations.

Forward-Looking Statements

2

ASSET OPTIMIZATION

ACCRETIVE ACQUISITIONS

HEALTHY BALANCE

SHEET

MAXIMIZE CASH FLOW

MAXIMIZE DISTRIBUTIONS AND UNITHOLDER VALUE

Evolving Business Plan

NEW VENTURES

Synergistic To Base Assets• Unconventional Viking and

Colorado Shale• GOB technical solutions• CO2 sequestration & storage• Gas storage• Bitumen land bank• West Holden Mannville CBM

High Impact Growth• Deep Basin exploration

+

CONVENTIONAL SHALLOW GAS

2009First Quarter

Highlights

3

Q1 2009 Highlights – Maximize Cash Flow

• Production measured 167.1 MMcfe/d as compared to 183.8 MMcfe/d in Q1 2008― Decrease due to delay in onstream date of new wells until April to benefit from newly announced provincial government

royalty reductions as well as non-core asset dispositions, cold weather related downtime and production outages

• Average realized gas price in Q1 2009 was $6.46 per Mcfe, an 11% decrease from $7.29 per Mcfe in 2008; 15% higher than the AECO monthly index of $5.63 per Mcfe during the same period

• Decrease was mitigated by the Trust’s commodity price risk management strategy, which contributed $14 million in realized hedging gains in Q1 2009

• Proactive natural gas price risk management strategy provided a level of stability to realized prices and cash flows despite significant decreases in natural gas prices― For June through December 2009 PET has an average of 106,785 GJ/d of estimated natural gas production hedged at

an average price of $7.32 per GJ; current actual and forward market for natural gas for the same period is $3.91 per GJ at AECO

― Further price management is in place through March 2011, total mark-to-market value of PET’s financial instruments as at May 6, 2009 is approximately $180 million

• Funds flow decreased to $41.2 million ($0.36 per Trust Unit) in Q1 2009 from $56.2 million ($0.51 per Trust Unit) in the same quarter in 2008, primarily due to lower realized prices and production levels, partially offset by reduced royalty and interest expenses.

Q1 2009 Highlights – Accretive Acquisitions

• Acquisitions of $6.7 million for the quarter reflect purchase of several properties synergistic to existing assets in January 2009

• On March 31, 2009 PET entered into a support agreement to acquire Profound Energy Inc. by way of a take-over bid, for a combination of cash and PET Trust Units for $1.34 per Profound share, equivalent to $112.9 million

• Properties located in year-round access area within the Trust’s new venture area in west central Alberta

• Currently producing approximately 18 MMcfe/d weighted 75% to natural gas

• P+P reserves of 74 Bcfe at December 31, 2008 (GLJ year-end external reserve report)

• Strategic expansion complements the Trust’s existing shallow gas prospect inventory • Significant number of higher impact, deep basin style resource plays

• Take-over off mailed to Profound shareholders April 24, 2009. Initial expiry time of the offer is June 1, 2009

Offer for Profound Energy Inc. represents a strategic entry into west central Alberta

4

Calgary

Edmonton

Athabasca

Fort McMurray

Viking

GrandePrairie

Profound Energy Inc.Paramount Energy Trust

Deep Basin

PET + Profound

$65 Million2009 Net Capital Expenditures

55 (41 net) wells2009 Drilling Activity

~$11.50 per UnitBlow-down NAV @ PV5%

2.2 million net acres

Undeveloped Land Base

8.0 yearsReserve Life Index (P+P)

560.7 Bcfe(93.5 MMBOE)

P+P Reserves

198 MMcfe/d( 33,000 BOE/d)

Average Daily Production

• PET offer to acquire all Profound shares via Takeover Bid– At each shareholder’s option:

- $1.34 cash/share, or

- 0.394 PET Trust Units/share, or

- A combination of cash and Trust Units

– Based on the maximum cash consideration of $15 million, the pro-rated shareholder will receive $0.395 cash and 0.278 trust Units per PFX share

• Total purchase price of $112.9 million including assumption of $61.5 million Profound debt

– $31,723 per BOE/d (3,000 BOE/d of current production)

– $7.75 per P+P BOE; $11.46 per proved BOE of reserves (GLJ Dec 31/08)

– 3.3 times 2008 cash flow from the Profound properties

• Private placement of 9.2 million special warrants to PET at $0.75/special warrant– Proceeds of $6.9 million to PFX

– Upon conversion PET will hold 19.9% of the outstanding PFX shares

– Convertible 1 for 1 into common shares of Profound

– In the event the takeover is not completed the private placement provides Profound with necessary funding to continue operations

Transaction Highlights – Profound Energy Inc.

5

Benefits to Profound Shareholders

• A significant premium for the shares of approximately 100%

• The option of cash and/or PET Units as consideration significantly increases liquidity

• PET Trust Units allow Profound shareholders to continue to participate in a significantly larger, natural gas weighted issuer with an attractive hedge position and large inventory of undeveloped land

• A current distribution of $0.05 per Unit per month for those shareholders who elect to receive PET Units

• Combined entity will be less levered on a debt to cash flow basis. – Profound’s existing bank facility is under review by the lender and it is anticipated to be

reduced to an amount at or below its current total net debt

Benefits to PET Unitholders

• Another step in the strategic expansion of PET’s asset base, complementing the existing shallow gas prospect inventory with higher impact resource-play opportunities

– Significant upside in the intensified development of the Rock Creek– Additional multi-zone potential in the Nordegg, Ostracod, Ellerslie, Notikewin and Viking

• Current daily production of 180 MMcfe/d (30,000 BOE/d) will increase by approximately 10% to 198 MMcfe/d (33,000 BOE/d)

• Proved + probable reserves will increase by approximately 15% to 560.7 Bcfe (93.5 MMBOE)

• Accretive on a per Trust Unit basis - Increases reserve life index 4% to 8 years - 5% accretive to reserves per Trust Unit- 1% accretive to production per Trust Unit

• Profound’s largely uncontracted gas production is available for PET to market or hedge as opportunities in the forward market arise

6

Q1 2009 Highlights – Asset Optimization

• Successful completion of a $40 million winter capital program during Q1 2009; production additions totaled approximately 16 MMcfe/d onstream by April 1, 2009― Northern District capital program totaled $29 million and added approximately 11 MMcfe/d in new

production volumes; drilling of 22 (18.2 net) wells, 130 workover and recompletion operations, $3 million invested in seismic programs

― Southern District capital program of $11 million added approximately 5 MMcfe/d of new production volumes; drilling of 15 (12.7 net) wells, 30 workovers and recompletions

• Planning is underway for PET’s capital expenditure program for the remainder of 2009― Budgeted $25 million over final 3 quarters with concentration in year-round access properties in

Southern district and East Side core areas― Total is largely discretionary depending on commodity prices― Consideration may be given to allocating funds to west central Alberta once Profound acquisition has

closed

7

• Total debt, including convertible debentures was $549 million at March 31, 2009, down 6% from $582.4 million at the end of first quarter 2008

• Net bank debt to annualized funds flow increased to 1.9x for Q1 2009 from 1.2x for the quarter ended December 31, 2008

― Result of reduction in funds flow driven by lower natural gas prices, coupled with increased debt levels due to expenditures related to the Trust’s winter capital program

• Convertible debentures of $236.1 million effectively represent term debt with the majority maturing in 2011 and 2012

• Borrowing base on the Trust’s credit facility reviewed in April 2009; adjusted on an interim basis to $350 million pending outcome of Profound offer― Should Profound acquisition close successfully, PET’s lenders will then adjust lending value of all PET’s assets,

including Profound properties and results of the Trust’s 2009 winter capital program

Q1 2009 Highlights - Healthy Balance Sheet

$ 14.20

$ 23.80

$ 19.35

$ 14.20

Conversion Price

MaturityDate

Coupon Rate

Amount Outstanding

TSX Symbol

June 30, 20126.5%$ 74.9 millionPMT.DB.C

April 30, 20116.25%$ 100.0 millionPMT.DB.B

June 30, 20106.25%$ 55.3 millionPMT.DB.A

Sept 30, 20098%$ 5.9 millionPMT.DB

Debt Reduction

Net bank debt reduced by 15% in 2008

Total Debt to Cash Flow

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

$650

Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q409E

$Milli

ons

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Tim

es

Net Bank Debt 8% Debentures

2005 6.25% Debentures 2006 6.25% Debentures

6.50% Debentures Total Debt to Annualized Quarterly Cash Flow

Note: excluding Profoundacquisition

8

2009 Outlook

“Still raising to outperform, lowers distribution and capex – what gives; with one of the better fully-funding models already, Paramount’s distributions was one of the safest distributions in the sector.”

National Bank – March 2009

Seismic9%

Land9%

Equip/Tie-in25%

Overhaul5%

Abandon8%

Drill/Complete/Recomplete

44%

10.7----5.55.2Land and Seismic

61.85.13.015.726.95.55.6Total PET Only

12.25.13.04.1---Base Maintenance

3.30.4-0.81.50.50.2Severo

5.5

-

-

-

Abandon

3.0

-

-

-

Overhaul

65.0

1.9

14.9

22.1

TotalEquip/Tie-in

Drill/Complete/

RecompleteLandSeismic($MM)

16.5

-

5.2

6.4

28.4

1.5

9.7

15.7

6.05.8Total PET Incl. Severo

-

-

-

0.4

-

-

New Ventures

South

North

2009 Capital Budget

Capital Expenditures By Quarter

40.0

5.811.7

7.5

0

15

30

45

60

75

Q1 Q2 Q3 Q4

($M

M)

9

Natural Gas Storage – at May 7, 2009

Storage levels 34% above 2008 and 20% above 5 year average

2007 - 2009 NG Storage vs. 5-year Average

1,918

$3.38

$4.49

$3.28

$4.57

1,000

1,500

2,000

2,500

3,000

3,500

4,000

Jul-0

7

Aug-0

7

Sep-0

7

Oct-07

Nov-0

7

Dec-0

7

Jan-

08

Feb-0

8

Mar

-08

Apr-0

8

May

-08

Jun-

08

Jul-0

8

Aug-0

8

Sep-0

8

Oct-08

Nov-0

8

Dec-0

8

Jan-

09

Feb-0

9

Mar

-09

Apr-0

9

May

-09

Jun-

09

Bcf

$3.00

$5.00

$7.00

$9.00

$11.00

$13.00

$/M

MB

TU

2007-2009 (Current)

5 Yr AvgNymex 12 Mo Strip

Nymex Daily Settle US$Aeco 5A Settle CDN$

Aeco 12 Mo Strip

10

Gas Markets – Supply

U.S. natural gas supply increased by >6 percent in 2008. ― Continued high levels of drilling activity and particularly the effects of successful horizontal drilling

― New completion technologies a step in unconventional natural gas shale resource plays

Despite the coldest winter in at least five years (8% colder than normal), demand destruction resulted in strong storage builds

― Increases despite Hurricane’s Ike and Gustav taking out ~2 Bcf/d of production for the second half of 2008

Liquefied Natural Gas (“LNG”) imports to North America have not yet begun what is expected to be a large increase from 1.0 Bcf/d in 2008

U.S. drilling activity finally dropped sharply in late 2008 after six years of increases― Canadian natural gas rigs count is 44% below last year and 54% below 5 year average

― U.S. rig count is 56% below last year and 10% below 5 year average

February 2009 saw the lowest number of new well licenses issued to Canadian E&P companies in a decade

Bullish Bearish

U.S drilling activity has finally entered decline

Gas Markets – Supply - LNG

New Global LNG Supply could make is making its way to North America in 2009

Source: Waterborne EnergyMay 2009

11

Gas Markets – Supply - LNG

Significant increase in LNG supplyforecast for Q3-Q4 2009

Source: Waterborne EnergyMarch 2009

Gas Markets – Supply - Rig Utilization

U.S drilling activity has finally entered decline

Source: Commodity Cycle(4/17/09)

12

Unprecedented economic weakness in North America and globally has resulted in a significant drop in industrial demand which represents approximately 1/3 of total U.S. natural gas consumption

EIA and IEA have increased their demand decline forecasts in 2009 and 2010― India, China, Britain, Germany, Japan, Spain, Taiwan and Korea have all experienced significant demand destruction

Rotation of funds out of many commodities as a result of U.S. economic downturn and global financial crisis

? The prices of many competing fuels including oil and coal have also dropped sharply, dropping the floor for natural gas prices that limited fuel-switching sometimes affords― Coal-gas switching becoming increasingly likely at current gas prices

Residential demand has remained strong with natural gas increasingly becoming fuel of choice

Natural gas speculation buyers may view the recent 6 ½ year lows as a buying opportunity

Gas Markets – Demand Bullish Bearish

Natural gas prices have declined > 74% from their peak in July 2007

Falling rig rates, will ultimately impact supply but with shale gas success and the late 2008 tie-in of drills, the U.S. will experience positive supply growth in 2009

Some analysts have forecast 2009 supply to outstrip demand in the U.S. by 4-5 Bcf/d Exact timing and volume of new LNG supply from gasification terminals currently being commissioned is

somewhat uncertain but additional supply has begun to arrive― Many key analysts calling for record U.S. LNG imports in 2009― Worldwide economic slowdown likely to direct relatively more LNG to North America

Storage was at 98% of the all time high at the end of the 2008/09 withdrawal season

Storage could hit an all time high by the end of the injection season

Weakening Canadian dollar relative to the US has increased AECO prices ― Weaker commodity prices and economic concerns are devaluing $Cdn

― May be short term related to current high demand for $US for investment fund redemptions

Outlook – Near Term Bullish Bearish

Its always darkest before the dawn

13

Lower natural gas prices driving lower capital spending thereby reducing future supply as production naturally declines

Further impact of credit and economic crises impacting producer spending

Environmental concerns broadening and becoming extremely political ― Support for cleaner fossil fuels such as natural gas and discouraging use of dirty fossil fuels such as coal for power

Virtually all new industrial and residential power generation capacity that has and is expected to come on stream in North American in recent and future years, is natural gas fired.

No additional LNG supply projects beyond 2010 have been approved

Outlook – Medium Term Bullish Bearish

The future looks bright

Price Risk ManagementStrategy• Protect the level of the Trust’s monthly distributions and manage the balance sheet• Enhance or protect the economics of an acquisition as prices vary from those forecast• Enhance or protect capital program economics• Capitalize on perceived market anomalies

Including realized gains of $14 million in Q1 2009, the value of the Trust’s hedge book = $180 million

(1) Average price calculated using fixed price and ceiling price for collars(2) Futures price reflects forward market prices as at May 5, 2009(3) Calculated using production of 205,000 GJ/d, including gas over bitumen shut-in volume

Current Hedge Position

52 %$3.63$7.13107,500July 2009 – October 2009

1 %US $3.62US $3.722,500June 2009

50 %$5.66$7.31102,500April 2010 – October 2010

6 %US $3.87US $3.9312,500August 2009

59 %$3.33$6.71120,000June 2009

54 %$6.82$7.82110.000November 2010 – March 2011

51 %$5.41$8.01105,000November 2009 – March 2010

$6.70

Price

($/GJ) (1)

$3.24

AECO/NYMEX Futures Price ($/GJ) (2)

60 %122,500May 2009

% of 2009

Budgeted Production (3)

Volumes at AECO

(GJ/day)

Term

14

Sensitivities – Full Year Results

201197190178($millions)Funds Flow, including 2009 Hedging(4)

0.1480.1450.1400.131($/Unit/month)Monthly Funds Flow Per Unit (4)

166166166166(MMcfe/d)Oil and Natural Gas Production

1.11.21.31.4(times)Ending Net Bank Debt To Funds Flow Ratio(4)

2.3

2.7

41%

0.027

37

6.14

$ 3.00

2.1

2.5

38%

0.058

78

6.44

$ 4.00

148114($millions)Funds Flow, excluding 2009 Hedging(4)

2.0

2.3

36%

0.109

7.04

$ 6.00

2.0

2.3

37%

0.084

6.74

$ 5.00

(times)Ending Net Debt To Funds Flow Ratio(4)

(times)Net Debt Less Post-2009 Financial Instruments Assets To Funds Flow(4)

(%)Annualized Payout Ratio (2)

($/GJ)Average April-December AECO Monthly Index (1)

($/Unit/month)Monthly Funds Flow Per Unit (4)

($/Mcfe)PET Realized

(1) Average AECO settled and forward price for 2009 as at May 5, 2009 was approximately $4.23/GJ; First four months of 2009 settled AECO monthly index price was $4.96/GJ; April – December 2009 forward price is $3.89/GJ

(2) Estimated payout ratio assumes distribution rate of $0.07 per Trust Unit payable in Jan. and Feb. 2009 and a rate of $0.05/month per Trust Unit for March through December 2009

(3) Calculated as ending net debt (including convertible debentures, maturities extending out to 2012) divided by estimated annual funds flow(4) $65 MM capital budget; Amounts do not include Profound

Current Forward Market (1)

Government regulatory announcements have provided clarity on alternatives• Strong bias toward corporate structure

Some value in the tax efficiency provided by the trust structure through 2010

Current PET Unitholder base largely yield-focused

Legacy asset base well suited to sustainable cash flow distributing model• Developed very detailed prospect inventory to evaluate assets and opportunities• Capital reinvestment in base assets targeted to offset natural production declines• Portion of capital budget allocated to land, seismic and new ventures

Asset base continues to evolve with new ventures and acquisitions• Expansion with exposure to new ventures on base assets• Numerous strategies to increase exposure to ‘high-impact’ opportunities

PET is and continues to be a fully functional E&P entity• Value driven investment strategy• Directors and management are E&P focused• Fully staffed technical teams

Business Plan Evolution Towards 2011

Assets and opportunities are driving change

15

Cash Flow Reinvestment

BASE ASSETS

DISTRIBUTIONS NEW VENTURES

SUSTAINABILITY VALUE &GROWTH

CASH FLOW

Excess cash flow for distribution, reinvestment in shallow gas assets for sustainability and building balance sheet for

reinvestment in New Ventures

Synergistic To Base Assets• Gas Storage

― Submitting pilot application in Q2 2009

• GOB Technical Solutions― Methane repressurization and storage project in GOB shut-in Corner ‘C’ pool deferred due to regulatory issues―Other technologies under investigation by partners

• CO2 Sequestration and Storage―Technical work ongoing to evaluate storage potential of depleted gas pools and other CO2 related opportunities

• Heavy Oil Cold Flow • Bitumen Land Bank• Mannville CBM

― Rights held pending technology and play advancements

High Impact Growth• Deep Basin Exploration

― Elmworth― W5 Rock Creek/Notikewin fairway

Opportunity Inventory

Option value with initiatives not recognized in net asset value assessment

16

InvestmentHighlights

“Not your typical natural gas trust”National Bank – December 2007

Average annual return on NAV = 28%Value growth per Unit since inception = 166%

$0.00

$4.00

$8.00

$12.00

$16.00

$20.00

$24.00

$28.00

Feb 03 2003 2004 2005 2006 2007 2008

$/Tr

ust U

nit

0%

40%

80%

120%

160%

200%

Cum

ulat

ive

annu

al re

turn

on

initi

al N

AV (%

)

Year end net asset value @ 5% Annual distributions

Year end net asset value plus distributions to date Cumulative rate of return on initial NAV (%)

NAV @ Feb 2003 $8.91/Unit

Distributions to Year end 2008 $13.124/Unit

NAV @Year end 2008$10.63/Unit

2008 Annual Highlights – Distributions and Unitholder Value

• Cash distributions of $1.20 per Trust Unit for 2008 represented a payout ratio of 48.6%

• Dividend Reinvestment and Optional Cash Purchase Plan (DRIP) has been suspended to reduce dilution

• Distributions were adjusted in January and March 2009 to $0.05 per Unit to preserve balance sheet strength

Distributions to Year end 2008 $13.124/Unit

17

Sustainability

Net bank debt forecast to be reduced by an additional 13% in 2009

2009E Revenue Distribution$MM @ $4.27/Gj AECO

Royalties, $31

Transportation Costs, $13

Operating Costs, $112

Interest, G&A and Other, $62

Distributions, $72

Capital Expenditures, $64

Debt Reduction, $50

Royalties Transportation Costs Operating Costs Interest, G&A and Other Distributions Capital Expenditures Debt Reduction

38%48%

72%55% 45% 48% 50% 60% 64% 54% 53%

71%48%

65%

33% 34%

40%

20%41% 52% 50% 48%

42% 42% 53% 56%39%

66%

103%

38%

0%

25%

50%

75%

100%

125%

150%

175%

200%

PET@

$0.05

2009

E Al

l-In

Payo

ut R

atio

Sustainability – 2009E All-in Payout Ratio

PET is #1 in projected sustainability

Source: BMO Capital Markets

With Hedging

Distributions Capital Expenditures

18

19.30%

10.81%

0%

5%

10%

15%

20%

25%

Avg PET

Cas

h Yi

eld

(%)

Current Cash Yield

Current Yield does not reflect low payout ratio and sustainability

Source: CIBC World Markets Weekly(5/1/09)

50%66% 64% 65% 68% 70% 63%

77% 87%73%

102%81%

97%

66%

20%46%

44% 54% 57%71% 74% 85%

74% 66% 84%

56%79%

68%105%

72%

0%

25%

50%

75%

100%

125%

150%

175%

200%

225%

PET@

$0.05

2009

E Al

l-In

Payo

ut R

atio

Sustainability – 2009E All-in Payout Ratio, Excluding Hedging

Is the market misunderstanding the value of PET’s hedge book??

Source: BMO Capital Markets

Without Hedging

Distributions Capital Expenditures

19

105%

98% 96%

81% 80% 77% 75% 74% 74%69% 69%

58%

49%45%

21%

0%

20%

40%

60%

80%

100%

120%

PET

13/15

Average - 71%

Unit Price Relative to Net Asset Value

Unit Price < Net Asset Value Unit Price <<< NAV plus risk-discounted value of opportunities

Source: CIBC World Markets Weekly(5/1/09)

For Additional Information:

Clay Riddell Executive Chairman

Sue Riddell Rose President & CEO

Cam Sebastian VP Finance & CFO

Sue ShowersInvestor Relations and Communications Advisor

Suite 3200, 605 5th Avenue SWCalgary, AB T2P 3H5(403) 269-4400 Fax (403) 269-4444

www.paramountenergy.com

20

Q1 2009 Operating Results

(21)7.135.63AECO Monthly Index Gas Price($/Mcf)

(15)4.043.45Operating Netback($/Mcfe)

(11)7.296.46Natural Gas Price, after hedging ($/Mcfe)

% Change20082009

3/437/30.238/31.4Wells Drilled (gross/net)

111.982.20Unit Operating Costs ($/Mcfe)

(23)7.055.44Natural Gas Price, before hedging ($/Mcfe)

(9)183.8167.1Daily Production(MMcfe/d)

(10)16.715.0Total Production(Bcfe)

Three Months Ended

March 31

Q1 2009 Financial Results

(10)346.3312.9Net bank and other outstanding debt

204(6.3)6.6Cap Ex – Acquisitions, net of dispositions

(15)46.439.6Cap Ex – Exploration & Development

189(85.7)78.6Net Earnings (Loss)

187(0.78)0.70Per Trust Unit

(35)33.121.5Distributions

% Change20082009($ Millions except per Trust Unit amounts)

(6)582.4548.9Net Debt (incl. debentures)

(37)0.300.19Per Trust Unit

(29)0.510.36Per Trust Unit

(27)56.241.2Funds Flow

(20)121.997.1Revenue

Three Months Ended

March 31