Paramount Resources Drilling and Production Activities in Clearwater County
Paramount Resources Ltd. is establishing a significant operational footprint in Clearwater County, Alberta, with ambitious development plans centered around its Willesden Green Duvernay assets and the construction of new processing infrastructure. The company's activities represent a strategic investment in one of Alberta's premier energy resource regions, with plans to dramatically increase production capacity over the next decade through continued drilling and infrastructure development.
Corporate Profile and Alberta Operations
Paramount Resources is a Canadian petroleum company founded in 1976 by Clayton H. Riddell, currently led by his son, James H.T. Riddell, who serves as Chairman, President and CEO[1][2]. The Calgary-based company engages in the exploration, development, production, processing, transportation, and marketing of natural gas, natural gas liquids, and crude oil[1]. With 579 full-time employees and assets valued at C$4.34 billion, Paramount reported a production output of 96,393 barrels of oil equivalent per day (BOE/d) in its 2023 annual report[1][2].
The company operates across three primary regions in Alberta: Grande Prairie Region, Kaybob Region, and Central Alberta and Other Region, with Clearwater County falling primarily within the Central Alberta Region[3]. This positioning gives Paramount access to both conventional and unconventional resources across multiple geological formations, including the highly prospective Duvernay and Montney plays[2].
Willesden Green Duvernay Development
The cornerstone of Paramount's Clearwater County operations is its Willesden Green Duvernay development, where the company holds 263,000 net acres of contiguous Duvernay rights[4]. This significant land position represents one of the company's key growth assets, with ambitious production targets that could transform Paramount's production profile over the next decade.
Current Production and Performance
As of Q4 2024, Paramount's Willesden Green assets were producing approximately 7,700 BOE/d[4]. Recent drilling results have shown promising outcomes, with three wells brought onstream in the third quarter of 2024 averaging gross 30-day peak production of 1,254 BOE/d per well (composed of 2.3 MMcf/d of shale gas and 865 Bbl/d of NGLs) with an average condensate-to-gas ratio (CGR) of 371 Bbl/MMcf[4].
Previous drilling results from 2021 at the company's 4-7N pad demonstrated even stronger performance, with two wells achieving gross initial 30-day production of 1,533 BOE/d per well[5]. This production data suggests the high-quality nature of Paramount's Duvernay acreage in the Willesden Green area of Clearwater County.
The Alhambra Plant Development
Central to Paramount's Willesden Green growth strategy is the construction of the wholly-owned Alhambra Plant, which received official approval through Development Permit 59/24 from Clearwater County[6]. Construction of this major processing facility is currently underway with the first phase expected to begin operations in the fourth quarter of 2025[4].
The Alhambra Plant is being built with substantial capacity to accommodate Paramount's ambitious growth plans:
- Total planned capacity of 150 MMcf/d of raw gas and 30,000 Bbl/d of raw liquids handling[4]
- Construction in three equal phases of 50 MMcf/d gas and 10,000 Bbl/d liquids each[4]
- First phase scheduled for Q4 2025 completion[4]
- Second phase accelerated with expected start-up in Q4 2026[4][7]
- Third phase timing flexible based on development progress[4]
The plant will be pipeline-connected to Paramount's existing majority-owned Leafland Plant to enhance operational synergies, creating an integrated processing network for the company's Willesden Green production[4]. This infrastructure investment represents a significant commitment to long-term development in Clearwater County.
Future Development Plans
Paramount has established ambitious growth targets for its Willesden Green assets, aiming to increase production from the current ~7,700 BOE/d to a plateau production level exceeding 50,000 BOE/d that can be sustained for over 20 years[4][5]. This represents a more than six-fold increase in production from current levels.
To achieve this growth, Paramount is making substantial capital investments in the area. The company has allocated approximately $560 million (at the midpoint of its budget) to Willesden Green Duvernay development for 2025 alone[7]. This capital will fund:
- Completion of the first phase of the Alhambra Plant
- Continued execution of drilling programs to feed the plant upon start-up
- Acceleration of the second phase of the Alhambra Plant[7]
The company has already secured egress for all three phases of its planned Duvernay production growth, ensuring that the increased output can reach markets efficiently[4].
Historical Drilling Activity in Clearwater County
Paramount has a long history of operations in Clearwater County dating back decades. Historical records show the company previously drilled and operated wells in the area, including the PARA WILLGR 11-28-38-5 well (ID: 0385052811002) which was licensed in 1999 and eventually abandoned in 2002[8]. This well, located at 00/11-28-038-05W5/2 within Clearwater County, demonstrates the company's longstanding presence in the region[8].
More recent drilling activity has been concentrated in the Willesden Green area, with records indicating that as of early 2024, Paramount had 5 wells in the area with an additional well licensed at the 4-7S location[5]. The company's drilling program has expanded significantly since then as part of its development strategy.
Broader Regional Assets and Activities
Central Alberta Regional Production
The Central Alberta and Other Region, which encompasses Paramount's Clearwater County operations, generated average sales volumes of 8,723 BOE/d in 2024, consisting of 22.6 MMcf/d of shale gas and 3.4 MMcf/d of conventional natural gas, along with associated liquids[9]. This production forms an important component of Paramount's overall portfolio, which includes more established production from the Kaybob Region, where the company produced 22,404 BOE/d in 2024[9].
Northeast Alberta Heavy Oil Assets
In addition to its active Duvernay development in Willesden Green, Paramount controls significant lands prospective for heavy oil development through its wholly-owned Cavalier Energy subsidiary[7][10]. These assets include:
- 1.3 million net acres of land prospective for cold flow heavy oil and in-situ thermal recovery[10]
- 293,000 net acres specifically in the Clearwater and Bluesky formations[7][10]
- Five significant thermal oilsands development opportunities, with the most substantial being the Hoole Grand Rapids project[7]
While these heavy oil assets are not currently the focus of Paramount's development activities in Clearwater County, they represent significant future potential, particularly as multilateral drilling techniques advance for the Clearwater formation[10].
Economic Context and Industry Dynamics
Paramount's development activities in Clearwater County take place within the broader context of the Clearwater formation's emergence as a major oil play in Alberta. Production from the Clearwater formation has grown significantly, from approximately 200,000 Bbl/d in 2014 to 300,000 Bbl/d in 2023, with forecasts suggesting continued growth to over 390,000 Bbl/d by 2031[11].
The Clearwater play has attracted attention for its favorable economics, with typical breakeven costs around $40 WTI[12]. The cost-effectiveness of multilateral wells in this formation (C$1.1-1.9 million per well) has made it an attractive target for development even in challenging pricing environments[12].
Clearwater County itself is recognized as "a leader in oil and natural gas production in Alberta," with its economy significantly influenced by energy sector activities[13]. The county encompasses 18,691 square kilometers with a population of approximately 12,278 residents[14][15].
Conclusion and Future Outlook
Paramount Resources has positioned itself for substantial growth in Clearwater County through its strategic focus on the Willesden Green Duvernay development. The company's integrated approach—combining extensive land holdings, active drilling programs, and significant infrastructure investments—demonstrates a long-term commitment to operations in the region.
The ongoing construction of the Alhambra Plant represents a pivotal development that will enable Paramount to accelerate production growth from its Clearwater County assets. With planned capital expenditures of approximately $560 million allocated to Willesden Green development in 2025 alone, Paramount is making one of the most significant investments in the area's energy infrastructure in recent years[7].
As the company progresses toward its target of more than 50,000 BOE/d from Willesden Green—production that could be sustained for over two decades—Paramount's activities will likely have substantial economic impacts for Clearwater County while establishing the company as a dominant producer in the region for years to come[4].
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- https://en.wikipedia.org/wiki/Paramount_Resources
- https://ca.finance.yahoo.com/quote/POU.TO/profile/
- https://www.globaldata.com/company-profile/paramount-resources-ltd/
- https://www.paramountres.com/content/uploads/2025/03/Paramount-Resources-Ltd.-March-2025-Corporate-Presentation-vFinal.pdf
- https://boereport.com/2024/03/05/paramount-resources-willesden-green-asset-review-boe-intel/
- https://www.clearwatercounty.ca/p/development-permit-approvals
- https://boereport.com/2024/12/18/paramount-resources-ltd-announces-planned-post-transaction-special-distribution-dividend-policy-and-guidance/
- https://www.wellwiki.org/wiki/0385052811002
- https://www.paramountres.com/content/uploads/2025/03/PRL-2024-AIF-v11-Final.pdf
- https://www.paramountres.com/content/uploads/2025/02/Paramount-Resources-Ltd.-January-2025-Corporate-Presentation-vFinal_v2.pdf
- https://incorrys.com/energy/oil-supply/canadian-oil-supply-2/clearwater-oil-production/
- https://www.enverus.com/blog/growth-rate-moderates-within-canadas-clearwater-play/
- https://regionaldashboard.alberta.ca/region/clearwater-county/
- https://www.clearwatercounty.ca
- https://en.wikipedia.org/wiki/Clearwater_County,_Alberta
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