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U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
 FORM 40-F ANNUAL REPORT
PURSUANT TO SECTION 13(a) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended: December 31, 2003
    
    Commission File Number: 333-98233
 PARAMOUNT ENERGY TRUST  Alberta, Canada
(Province or other jurisdiction of incorporation or organization) 1311
    
    None(Primary Standard Industrial
Classification Code Number)
    
    (I.R.S. Employer
Identification Number)
 500, 630  4th Avenue, S.W.
Calgary, Alberta
Canada T2P 0J9
(Address and telephone number of Registrants principal executive offices) Carter Ledyard & Milburn LLP
2 Wall Street
New York, New York 10005-2072
(212) 732-3200
(Name, address (including zip code) and telephone number (including area code) of agent for service in the United States) Securities registered or to be registered pursuant to Section 12(b) of the Act. Title of each class
    
    Name of each exchange on which registeredNone
    
    None
 Securities registered or to be registered pursuant to Section 12(g) of the Act. None 
 (Title of Class)
 Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act. Trust Units 
  For Annual Reports indicate by check mark the information filed with this Form: þ Annual information form
    
    þ Audited annual financial statements
 Indicate the number of outstanding shares of each of the issuers
classes of capital or common stock as of the close of the period covered by
the annual report: There were 44,638,000 Trust Units outstanding as of December 31, 2003. Indicate by check mark whether the Registrant filing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934 (the Exchange Act). If Yes is marked, please indicate the filing
number assigned to the Registrant in connection with such Rule. Yes o No þ Indicate by check mark whether the Registrant (1) has filed all reports
to be filed by Section 13 or 15(d) of the Exchange Act during the preceding
12 months (or for such shorter period that the Registrant was required to
file such reports) and (2) has been subject to filing requirements for the
past 90 days. Yes þ No o




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TABLE OF CONTENTS  CONSOLIDATED FINANCIAL STATEMENTS AND MANAGEMENTS DISCUSSION AND ANALYSISDISCLOSURE CONTROLS AND PROCEDURESAUDIT COMMITTEE FINANCIAL EXPERTCODE OF ETHICSPRINCIPAL ACCOUNTANT FEES AND SERVICESOFF-BALANCE SHEET ARRANGEMENTSTABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONSUNDERTAKING AND CONSENT TO SERVICE OF PROCESSSIGNATURESINDEX TO EXHIBITSAnnual Information Form for Year Ended 12/31/03Consolidated Financial StatementsReconciliation of Financial StatementsMD&A for the Fiscal Year Ended 12/31/03Certification of CEO Pursuant to Section 302Certification of CFO Pursuant to Section 302Certification of CEO Pursuant to Section 906Certification of CFO Pursuant to Section 906Consent of Independent Chartered AccountantsConsent of McDaniel & Associates Consultants Ltd.    Table of Contents  
 ANNUAL INFORMATION FORM,
CONSOLIDATED FINANCIAL STATEMENTS AND
MANAGEMENTS DISCUSSION AND ANALYSIS A. Annual Information Form The Registrants Annual Information Form is attached hereto as Exhibit 99.1 B. Consolidated Financial Statements The Registrants Consolidated Financial Statements, including the report
of independent chartered accountants with respect thereto, are attached hereto
as Exhibit 99.2. A reconciliation of such financial statements to accounting
principles generally accepted in the United States, including the report of independent chartered accountants with respect thereto, is attached hereto as Exhibit 99.3. C. Managements Discussion and Analysis The Registrants Managements Discussion and Analysis is attached hereto
as Exhibit 99.4. 
 DISCLOSURE CONTROLS AND PROCEDURES Within the 90-day period prior to the filing of this report, an evaluation
was carried out under the supervision of and with the participation of the
Registrants management, including the Administrators Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the Registrants
disclosure controls and procedures (as defined in Rule 13a-15(c) under the
Exchange Act). Based on that evaluation, the Administrators Chief Executive
Officer and Chief Financial Officer concluded that the design and operation of
these disclosure controls and procedures were effective to ensure that material
information required to be disclosed by the Registrant in the reports that it
files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the Commissions rules and forms. No significant changes were made in the Registrants internal controls or
in other factors that could significantly affect these controls subsequent to
the date of their evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses. It should be noted that any system of controls, however well designed and
operated, can provide only reasonable, and not absolute, assurance that the
objectives of the system are met. In addition, the design of any control system
is based in part upon certain assumptions about the likelihood of future
events. Because of these and other inherent limitations of control systems,
there can be no assurance that any design will succeed in achieving its stated
goals under all potential future conditions, regardless of how remote. 
 AUDIT COMMITTEE FINANCIAL EXPERT The Board of Directors of Paramount Energy Operating Corp. has determined
that Mr. Jack Peltier is an audit committee financial expert (as defined in
paragraph 8(b) of General Instruction B to Form 40-F). 
 CODE OF ETHICS The Trust has adopted a code of ethics (as that term is defined in Form
40-F) that applies to its principal executive officer and principal financial
officer. The code of ethics has been posted on the Registrants website at
www.paramountenergy.com. Holders of Trust Units can obtain a copy of the
Registrants code of ethics for no charge by sending a written request to
info@paramountenergy.com or to the Corporate Secretary of the Administrator at
500, 630  4th Avenue S.W., Calgary, Alberta T2P 0J9, Canada.




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Since it was adopted, the code of ethics has been amended and restated to
conform to the requirements applicable to annual reports on Form 40-F. The
Registrant will post on its website any amendment to, or waiver of, a provision
of its code of ethics which requires disclosure within five business days
following the date of any such amendment or waiver. 
 PRINCIPAL ACCOUNTANT FEES AND SERVICES Audit Fees The following sets forth the aggregate fees billed for each of the past
two fiscal years for professional fees to the Registrants principal
accountants for the audit of the Registrants annual financial statements and
for services normally provided by the accountant in connection with statutory
and regulatory filings or engagements for those fiscal years. Fiscal year ended December 31, 2003
    
    Cdn. $357,625Fiscal year ended December 31, 2002
    
    Cdn. $167,125
 Audit-Related Fees The following sets forth the aggregate fees billed for each of the past
two fiscal years for assurance and related services by the principal accountant
that are reasonably related to the performance of the audit or review of the
Registrants financial statements and are not reported above under the caption
Audit Fees of this section. Fiscal year ended December 31, 2003
    
    Cdn. $NilFiscal year ended December 31, 2002
    
    Cdn. $Nil
 Tax Fees The following sets forth the aggregate fees billed for each of the past
two fiscal years for professional services rendered by the principal accountant
for tax compliance, tax advice, and tax planning. Fiscal year ended December 31, 2003
    
    Cdn. $34,200Fiscal year ended December 31, 2002
    
    Cdn. $2,500
 Our principal accountant prepares and files our annual Canadian Trust and
Corporate Income Tax returns and has assisted us in determining the tax status
of distributions to holders of Trust Units in the United States and Canada and
in the appropriate reporting of, and withholding with respect to, such
distributions. All Other Fees




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The following sets forth the aggregate fees billed for each of the past
two fiscal years for products and services provided by the principal
accountant, other than services reported under the captions Audit Fees,
Audit-Related Fees and Tax Fees of this section. Fiscal year ended December 31, 2003
    
    Cdn. $21,828Fiscal year ended December 31, 2002
    
    Cdn. $19,260
 Fees
in this category pertain primarily to consulting services with
respect to commodity markets analysis and surveillance. Audit Committee Approval The Administrators audit committee formally pre-approves the rendering of
all services by the Registrants principal accountant before they are
performed, regardless of whether such services are related to the annual audit
of the Registrants financial statements. Of the fees reported above as billed by the Registrants principal
accountant, none were approved in reliance on the waiver contained in paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X. 
 OFF-BALANCE SHEET ARRANGEMENTS The Registrant has no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on its financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are
material to investors. 
 TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS Other
than certain non-material operating leases for office and computer
equipment and field vehicles, the following table shows the Registrants contractual obligations as of
December 31, 2003: Payments Due by Period*(CDN$ Millions)Contractual
    
    
    
    
    
    Less than
    
    1-3
    
    3-5
    
    More thanObligations
    
    Total
    
    1 Year
    
    Years
    
    Years
    
    5 YearsBank Debt
    
    $
    55.6
    
    
    $
    55.6
    
    
    
    
    
    
    
    
    
    
    
    Accounts Payable and
Accrued Liabilities
    
    
    8.7
    
    
    
    8.7
    
    
    
    
    
    
    
    
    
    
    
    Distributions Payable
    
    
    8.9
    
    
    
    8.9
    
    
    
    
    
    
    
    
    
    
    
    Purchase Obligations
    
    
    5.5
    *
    
    
    5.5
    
    
    
    *
    
    
    
    *
    
    
    
    *Total
    
    $
    78.7
    
    
    $
    78.7
    
    
    
    
    
    
    
    
    
    
    
    
 * Minimum payments required
under natural gas transportation agreements for periods other than
the following year have not been calculated
   but will not exceed $5.5 million in any one year. Management expects actual payments to be
significantly in excess of the minimum
   requirements.




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* Calculated in accordance with accounting principles generally accepted in Canada. 
 UNDERTAKING AND CONSENT TO SERVICE OF PROCESS A. Undertaking The Registrant undertakes to make available, in person or by telephone,
representatives to respond to inquiries made by the Commission staff, and to
furnish promptly, when requested to do so by the Commission staff, information
relating to: the securities registered pursuant to Form 40-F; the securities in
relation to which the obligation to file an annual report on Form 40-F arises;
or transactions in said securities. B. Consent to Service of Process A Form F-X signed by the Registrant and its agent for service of process
is being filed with the Commission concurrently herewith.




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SIGNATURES Pursuant to the requirements of the Exchange Act, the Registrant certifies
that it meets all of the requirements for filing on Form 40-F and has duly
caused this Annual Report on Form 40-F to be signed on its behalf by the
undersigned, thereunto duly authorized. Date: May 19, 2004
    
    PARAMOUNT ENERGY TRUST*By:
    
    Paramount Energy Operating Corp.(Administrator)By:
    
    /s/ Cameron R. SebastianCameron R. SebastianVice President, Finance and Chief Financial Officer
 * The Registrant is a trust, and the person is signing in his capacity as an
officer of Paramount Energy Operating Corp., the administrator of
the Registrant.




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INDEX TO EXHIBITS Exhibit
    
    Description99.1
    
    Annual Information Form for the fiscal year ended December 31, 200399.2
    
    Consolidated Financial Statements for the fiscal years ended December 31,
2003 and December 31, 2002 and auditors report thereon99.3
    
    Reconciliation of Financial Statements to Accounting Principles Generally
Accepted in the United States and auditors report thereon99.4
    
    Managements Discussion and Analysis for the fiscal year ended December
31, 200399.5
    
    Certification of Chief Executive Officer pursuant to Rule 15d-14(a) (as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)99.6
    
    Certification of Chief Financial Officer pursuant to Rule 15d-14(a) (as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002)99.7
    
    Certification of Chief Executive Officer pursuant to Rule 15d-14(b) and
Section 1350 of Chapter 63 of Title 18 of the United States Code (as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)99.8
    
    Certification of Chief Financial Officer pursuant to Rule 15d-14(b) and
Section 1350 of Chapter 63 of Title 18 of the United States Code (as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002)99.9
    
    Consent of Independent Chartered Accountants to the inclusion of their
report dated February 26, 2004 on the consolidated financial statements of the
Registrant as at December 31, 2003 and as at December 31, 2002 and for the
years then ended and the related supplemental note99.10
    
    Consent of McDaniel & Associates Consultants Ltd. to the reference to it
and to the inclusion of its report dated March 16, 2004 evaluating the
reserves of the Registrant