Paramount spins out oilsands business into separate company

CALGARY - Paramount Resources Ltd. (TSX:POU) has reorganized its operations and plans to spin out its oilsands and bitumen businesses into a a new wholly owned subsidiary, Pixar Petroleum Corp.

Paramount said Monday that William Roach, former CEO of oilsands operator UTS Energy, will become the new president and CEO of Pixar.

James Riddell, Paramount's president and chief executive, has been appointed the executive chairman of Pixar.

"The reorganization is being undertaken to create a focused, self-funding oilsands entity in order to accelerate the development of Paramount's bitumen interests," the Calgary oil and gas company said in a release before markets opened.

When the reorganization is complete, Pixar will own all of Paramount's oilsands and bitumen leases — including Paramount's Hoole and Saleski leases — in the western Athabasca region of Alberta.

Paramount explores for, develops, processes, transports and sells oil and natural gas and operates in western Canada.