PRD ENERGY ANNOUNCES INCREASE OF INSIDER EQUITY OWNERSHIP AND GRANT OF STOCK
OPTIONS

CALGARY, Oct. 15 /CNW/ - PRD Energy Inc. (TSX Venture: PRD) ("PRD " or the "Company") announced today that certain directors, officers and consultants of the Company have agreed to acquire and/or increase their common share ownership in the Company.  The Company also announced the grant of new stock options to directors, officers and consultants of the Company.

Increase of insider equity ownership

The Company is pleased to announce that Mr. Grant Fagerheim (Director) and Bill Shupe (Director) and each of the Company's newly appointed directors and officers consisting of Messrs. Daryl Gilbert (Director), James (Terry) McCoy (Director), Ted Watchuk (Vice President, Exploration), Barry Flavel (Consultant, Geophysics) and Kelsey Clark (Corporate Secretary) have agreed to subscribe for an aggregate of 1,854,285 common shares of the Company at a price of $0.35 per share.

These investments are consistent with PRD's policy of encouraging the maintenance of high levels of equity ownership among its directors, officers and employees so that they are aligned as closely as possible with the interests of shareholders.  Upon completion of this private placement, the directors and officers of the Company will have invested approximately $12.6 million in PRD in the past three years and hold, directly or indirectly, approximately 25% of the outstanding common shares.

The Company intends to use the proceeds of the private placement for exploration and development purposes.  The private placement is a related party transaction for the purposes of TSX Venture Policy 5.9, however, is exempt from the minority approval and valuation requirements of such policy. Each of the directors of the Company that were eligible to vote on matter considered and approved the transaction. The common shares issuable under the private placement will be subject to a four-month hold period. The private placement is subject to the approval of the TSX Venture Exchange and is expected to close on or about October 22, 2010.

Stock option grants

The Company also announced that it has granted the directors, officers and certain consultants of the Company options to acquire an aggregate of 3,185,000 common shares of the Company.  The options are exercisable for a period of five years at a price of $0.37 per common share and are scheduled to vest in equal instalments on the first, second and third anniversaries of the grant date.  Following the grant, 8,989,000 common shares are reserved for issuance under the Company's stock option plan.

PRD Energy Inc. is a Calgary-based oil and natural gas company engaged in the exploration for and the acquisition, development and production of natural gas and crude oil, principally internationally as well as in Western Canada.  The Company's common shares trade on the TSX Venture Exchange under the symbol "PRD".

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements in this press release contain forward-looking information including expectations.  Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect.  Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company.  These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices and exchange rate changes.  Industry related risks include, but are not limited to; operational risks in exploration, development and production, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses.  The risks outlined above should not be construed as exhaustive.  The reader is cautioned not to place undue reliance on this forward-looking information.  The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.

For further information:

Michael Greenwood, Chairman and Chief Executive Officer
Mark Hornett, President and Chief Operating Officer

Telephone: [phone]
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