Progress Expands Montney Holdings



    Acquires 41,500 undeveloped acres at British Columbia land sale

    CALGARY, Feb. 26 /CNW/ - (TSX - PRQ) - Progress Energy Resources Corp.
("Progress" or the "Company") announces that it has acquired 41,500 net
undeveloped acres of Montney rights at the February 25, 2009 British Columbia
land sale. The acquired lands are immediately adjacent to the Company's
current Montney holdings in the Foothills.
    At the land sale, Progress invested $13.2 million to acquire Montney and
other rights on 16,620 hectares of land at a competitive cost of $792 per
hectare or $319 per acre. Progress now holds 790,000 net undeveloped acres of
Montney rights including the recently negotiated 45 net section farm-in in the
Foothills.
    Progress drilled one horizontal and three vertical Montney wells in the
fourth and first quarters in the Foothills and Gold Creek operating areas. The
Company is currently completing the horizontal well which offsets a successful
2008 Montney vertical well in the Foothills and is drilling an additional
three Montney vertical wells at this time.

    Progress is a Calgary based, mid-size energy company primarily focused on
natural gas exploration, development and production in northwest Alberta and
northeast British Columbia. Common shares of Progress are listed on the
Toronto Stock Exchange under the symbol PRQ.

    Advisory Regarding Forward-Looking Statements

    This press release contains forward-looking statements and
forward-looking information within the meaning of applicable securities laws.
The use of any of the words "expect", "anticipate", "continue", "estimate",
"objective", "ongoing", "may", "will", "project", "should", "believe",
"plans", "intends" and similar expressions are intended to identify
forward-looking information or statements. More particularly and without
limitation, this press release contains forward-looking statements and
information concerning the completion of the offering and the use of the
proceeds of the offering.
    The forward-looking statements and information are based on certain key
expectations and assumptions made by Progress, including expectations and
assumptions concerning prevailing commodity prices and exchange rates,
applicable royalty rates and tax laws; future well production rates; reserve
and resource volumes; the performance of existing wells; the success obtained
in drilling new wells; and the sufficiency of budgeted capital expenditures in
carrying out planned activities; and the availability and cost of labour and
service regarding the satisfaction of the conditions of closing of the
offering, the receipt of applicable approvals. Although Progress believes that
the expectations and assumptions on which such forward-looking statements and
information are based are reasonable, undue reliance should not be placed on
the forward looking statements and information because Progress can give no
assurance that they will prove to be correct.
    Since forward-looking statements and information address future events
and conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. These include, but are not
limited to, the risks associated with the oil and gas industry in general such
as operational risks in development, exploration and production; delays or
changes in plans with respect to exploration or development projects or
capital expenditures; the uncertainty of reserve and resource estimates; the
uncertainty of estimates and projections relating to reserves, resources,
production, costs and expenses; health, safety and environmental risks;
commodity price and exchange rate fluctuations; marketing and transportation;
loss of markets; environmental risks; competition; incorrect assessment of the
value of acquisitions; failure to realize the anticipated benefits of
acquisitions; ability to access sufficient capital from internal and external
sources; failure to obtain required regulatory and other approvals; changes in
legislation, including but not limited to tax laws, royalties and
environmental regulations; and failure to obtain required regulatory and other
approvals; and to satisfy the other closing condition.
    Accordingly, readers should not place undue reliance on the
forward-looking statements and information contained in this press release
concerning these items.
    Readers are cautioned that the foregoing list of factors is not
exhaustive. Additional information on these and other factors that could
affect the operations or financial results of Progress are included in reports
on file with applicable securities regulatory authorities and may be accessed
through the SEDAR website (www.sedar.com). The forward-looking statements and
information 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: 00020978E




For further information:

For further information: Greg Kist, Vice President, Investor Relations
and Marketing, Progress Energy Resources Corp., at (403) 539-1809,
(gkist@progressenergy.com)

Organization Profile

Progress Energy Canada Ltd.

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