S&P: Paramount Resources on positive watch

Standard & Poor's said it placed its CCC+ long-term corporate credit and bank loan ratings and its CCC senior unsecured debt ratings on Paramount Resources Ltd. on CreditWatch with positive implications.

The agency said that the placement follows the announcement that that Statoil ASA has entered an agreement with North American Oil Sands Corp., whereby Statoil will make an all-cash offer to acquire all outstanding shares of NAOSC for C$2.2 billion.

According to S&P, the ratings on Paramount reflect the company's low reserve life index, high finding and development costs, its high leverage as measured on a debt per net proven barrels of oil equivalent basis and its near-term negative free cash flow.

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