Paramount Energy Trust Confirms April 2008 Distribution and Updates Hedging Position

Paramount Energy Trust (TSX: PMT.UN) ("PET" or the "Trust") confirmed today that its distribution to be paid on May 15, 2008 in respect of income received by PET for the month of April 2008, for Unitholders of record on April 30, 2008, will be $0.10 per Trust Unit. The ex-distribution date is April 28, 2008. The April 2008 distribution brings cumulative distributions paid since the inception of the Trust in February 2003 to $12.324 per Trust Unit.

The Trust also confirms that there will continue to be no Trust Units available under the Optional Cash Payments component of its Distribution Reinvestment Plan ("DRIP"). The Distribution Reinvestment component of the DRIP will continue to be active.

Natural gas prices remain highly volatile largely around uncertainty regarding weather and its effect on natural gas demand and storage. PET will continue to actively manage its risk management program. Financial and physical forward sales arrangements at the AECO and NYMEX trading hubs as at April 18, 2008 are as follows:


                                             Current
                             % of            Forward
           Volumes at      Budget              Price
Type of       AECO (2) Production    Price        (4)
contract        (GJ/d)         (3)   ($/GJ)    ($/GJ)                   Term
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Financial      84,500                 7.44                          May 2008
Physical        5,500                 7.00                          May 2008
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Period total
 AECO, net (1) 90,000                 7.41      9.06                May 2008
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Financial
 NYMEX         10,000             7.70 US$                          May 2008
Physical
 NYMEX          5,000             6.68 US$                          May 2008
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Period total
 NYMEX,
 net (1)       15,000             7.36 US$ 10.63 US$                May 2008
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Period total,
 net (1)      105,000          48%                                  May 2008
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Financial      82,000                 7.41               June - October 2008
Physical        5,500                 7.00               June - October 2008
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Period total
 AECO, net (1) 87,500                 7.38      9.30     June - October 2008
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Financial
 NYMEX         10,000             7.70 US$               June - October 2008
Physical
 NYMEX          5,000             6.68 US$               June - October 2008
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Period total
 NYMEX,
 net (1)       15,000             7.36 US$ 10.89 US$     June - October 2008
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Period total,
 net (1)      102,500          47%                       June - October 2008
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                                                            November 2008 -
Financial      96,000                 7.85                        March 2009
                                                            November 2008 -
Physical        2,500                 8.22                        March 2009
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Period total,                                               November 2008 -
 net (1)       98,500          45%    7.88      9.96              March 2009
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Financial      12,500                 7.35              April - October 2009
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Period total,
 net (1)       12,500           6%    7.35      8.22    April - October 2009
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(1) Weighted average prices are calculated by netting the volumes of the
    financial and physical sold/bought contracts together and measuring the
    net volume at the weighted average "sold" price for the financial and
    physical contracts. Included in the November 2008 - March 2009 volume
    summary is a collar to sell forward 5,000 GJ/d at a floor price of $7.00
    per GJ at AECO and a ceiling price of $8.00 per GJ. The ceiling price
    is used in the weighted average price calculation.
(2) All transactions at AECO unless identified specifically as a NYMEX
    transaction.
(3) Includes actual and gas over bitumen deemed projected production
    volumes.
(4) Average AECO monthly index for May through December 2008 as at April 18,
    2008 is $9.37 per GJ.