Progress Energy Trust announces closing of acquisition



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

    CALGARY, April 2 /CNW/ - (PGX.UN - TSX) - Progress Energy Trust
("Progress" or the "Trust") is pleased to announce that it has successfully
closed the previously announced acquisition of the shares of a private company
which holds assets in northeast British Columbia and northwest Alberta (the
"Acquisition"). Progress financed the Acquisition with the proceeds of a
bought deal subscription receipt ("Subscription Receipts") financing, which
closed on March 27, 2007, as well as through available credit facilities.
    Production from the acquired assets is approximately 6,400 barrels of oil
equivalent (boe) per day comprising 95 percent natural gas. The Acquisition is
expected to increase Progress' overall current production to approximately
24,000 to 25,000 boe per day. The Acquisition adds approximately 17 million
boe of proved plus probable reserves, approximately 250,000 net acres of land,
substantial seismic data and tax pools in excess of the purchase price. The
assets are contiguous with Progress' current producing properties in the Deep
Basin of northwest Alberta and the Foothills of northeast British Columbia.
    Under the bought deal financing, Progress issued 21,000,000 Subscription
Receipts at $12.00 per Subscription Receipt for gross proceeds of $252
million. With the closing of the Acquisition, trading in the Subscription
Receipts will be halted and will remain halted until the close of business
today, April 2, 2007, at which time the Subscription Receipts will be
de-listed.
    Holders of Subscription Receipts will, upon the surrender of the
Subscription Receipts, receive one trust unit ("Units") for each Subscription
Receipt held, effective at 5:00 p.m. (Calgary time), April 2, 2007. Progress'
monthly cash distribution for March 2007 will be paid on April 16, 2007 to
Unit and Subscription Receipt holders of record at the close of business on
March 31, 2007.
    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.
    In this news release, production and reserves information may be
presented on boe basis with six mcf of natural gas being equivalent to one
barrel ("barrel") of crude oil or natural gas liquids. Boe's may be misleading
particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead.




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

Organization Profile

Progress Energy Canada Ltd.

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