Berkley/Paramount Announce Shell Northwest Territories Acquisition.

CALGARY, ALBERTA--(BUSINESS WIRE)--May 27, 1998--Berkley Petroleum(TSE:BKP.) (Alberta Stock Exchange:BKP.) Paramount(TSE:POU.) (OTC Bulletin Board:PAREF) Berkley Petroleum Corp. and Paramount Resources Ltd. are pleased to announce that the companies have entered into an agreement to purchase Shell Canada Limited's interest in the southern Northwest Territories and the Maxhamish area of northeast British Columbia. The acquisition includes 196,285 acres in the Fort Liard area including Shell Canada Limited's 50 percent interest at Bovie Lake and Arrowhead. Also included is 42,450 acres in the Maxhamish area of northeast British Columbia with working interests ranging from 50 to 100 percent. As a result of the transaction, Paramount and Berkley now control 100 percent in all of the prior joint venture lands. The Berkley/Paramount joint venture plans to continue its drilling program in the upcoming winter by completing the Bovie Lake C-76 sidetrack operation and completing the Arrowhead N-65 well that, as previously announced, flowed significant rates of gas; in addition, drilling operations at Arrowhead O-65 and Netla M-23 will continue. The companies' Liard F-36 well will also be completed as soon as access can be established. Further additional exploratory locations for the area are currently being evaluated.

CONTACT: Berkley Petroleum Corp.

Mike Rose, 403/571-3600

Fax: [phone]

http://www.berkleypete.com

or

Paramount Resources Ltd.

Jim Riddell, 403/290-3600

Fax: [phone]

or

Paramount Resources Ltd.

Clay Riddell, 403/290-3600

Fax: [phone]