Progress Energy Trust announces closing of $252 million Subscription Receipt bought deal financing



    /NOT FOR DISSEMINATION IN THE US OR THROUGH US WIRE SERVICES/

    CALGARY, March 27 /CNW/ - (PGX.UN - TSX) - Progress Energy Trust
("Progress" or the "Trust") announced today the closing of its previously
announced "bought deal" financing. Upon closing, the Trust issued 21,000,000
subscription receipts (the "Subscription Receipts") at $12.00 per Subscription
Receipt for gross proceeds of $252,000,000. The proceeds of the financing from
the offering of Subscription Receipts have been deposited in escrow and,
subject to certain conditions noted below, will be used to pay a portion of
Progress' acquisition of all of the shares of a private company which holds
assets in northeast British Columbia and northwest Alberta (the
"Acquisition"). The Subscription Receipts are listed for trading on the TSX
under the symbol PGX.R.
    The Acquisition is expected to close on or about April 2, 2007. Each
Subscription Receipt represents the right to receive one trust unit of
Progress ("Units"), without the payment of any additional consideration, on
the closing of the Acquisition and an amount per Subscription Receipt equal to
the amount per Unit of any cash distributions for which record dates have
occurred from March 27, 2007 to the date immediately preceding the date the
Units are issued pursuant to the Subscription Receipts. The proceeds from the
offering of Subscription Receipts have been deposited in escrow pending the
closing of the Acquisition. If the Acquisition closes on or before May 1,
2007, the net proceeds from the offering of the Subscription Receipts will be
released to Progress and used by Progress to pay a portion of the Acquisition
price. If the Acquisition fails to close by May 1, 2007 or the Acquisition is
terminated at any earlier time, Progress will return to holders of
Subscription Receipts the issue price and their pro rata entitlement to
interest thereon. The funds deposited in escrow will be applied towards
payment of such amount.
    The offering was underwritten by an underwriting syndicate led by BMO
Capital Markets and including CIBC World Markets Inc., Scotia Capital Inc.,
RBC Capital Markets, Canaccord Capital Corporation, FirstEnergy Capital Corp.,
National Bank Financial Inc., Peters & Co. Limited, Raymond James Ltd. and
Tristone Capital Inc. (collectively, the "Underwriters").
    This News Release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities nor shall there be any sale of
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The Subscription Receipts have not been and will not be
registered under the United States Securities Act and may not be offered or
sold in the United States except in transactions exempt from such
registration.

    Progress Energy Trust is an oil and gas trust. The Trust Units are traded
on the Toronto Stock Exchange under the symbol "PGX.UN".

    ADVISORY: This press release contains forward-looking statements.
Although Progress believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them because Progress can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties.
    The intended use of the net proceeds of the offering by Progress might
change if the board of directors of Progress Energy Ltd., the administrator of
Progress, determines that it would be in the best interests of Progress to
deploy the proceeds for some other purpose.
    The forward-looking statements contained in this press release are made
as of the date hereof and Progress undertakes no obligation to update publicly
or revise any forward-looking statements or information, whether as a result
of new information, future events or otherwise, unless so required by
applicable securities laws.

    %SEDAR: 00009589E




For further information:

For further information: Michael Culbert, President & Chief Executive
Officer, (403) 539-1820; Greg Kist, Vice President, Investor Relations &
Marketing, (403) 539-1809

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Progress Energy Canada Ltd.

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