2009-06-12-2009-01-01-2009-02-01

Cos. merged, creating E&P with 152 MMboe proved.

ProEx Energy Ltd., Calgary, (Toronto: PXE) and Progress Energy Trust, Calgary, (Toronto: PGX-UN) have closed their merger, creating a company with a combined enterprise value of approximately C$2.4 billion. Progress is the surviving entity. The combination benefits ProEx by consolidating its working interests in the foothills of northeastern British Columbia with the majority of land 100% controlled and provide exposure to a high-quality asset with a large low-risk drilling inventory in northwestern Alberta Deep Basin. The combined company has a material gas-production base in western Canada including an undeveloped land base of more than 1.1 million net acres in northeastern British Columbia and northwestern Alberta. This includes more than 500 drilling locations and more than 3,000 square kilometers of 3-D seismic data. Combined production is approximately 37,000 barrels of oil equivalent per day. Proved reserves as of Sept. 1 were 816 billion cubic feet of gas and 15.4 million barrels of gas liquids for a total 152 million barrels of oil equivalent. Progress president and chief executive Michael Culbert says, "We are pleased that shareholders have given overwhelming support to our announced business combination. We believe that our high-quality assets, talented staff, low cost structure and prudent financial management provide the right combination to navigate through these challenging times in the equity and commodity markets and will make Progress a core holding for investors in the North American energy sector over the long run." ProEx president and chief executive David Johnson will be executive chairman of Progress and Culbert will be president and chief executive. The board will include Donald Archibald, John Brussa, Howard Crone, Brian Mclachlan, Gary Perron and Terrence Svarich. Art MacNichol has been named vice president, finance and chief financial officer; Daniel Topolinsky, senior vice president, exploration; Greg Kist, vice president, investor relations and marketing; Gary Miller, vice president, operations; Cindy Rutherford, vice president, land; and Jim Stannard, vice president, engineering. Each is an executive officer of Progress Trust. John Stewart has stepped down as chairman of ProEx. Steven Allaire, vice president, finance, and chief financial officer of ProEx and senior vice president of Progress Trust, has chosen to retire upon closing. "Both Messrs. Stewart and Allaire have been integral to the success of ProEx and its predecessor companies. We thank them for their commitment and advice over the years and wish them the best in their future endeavors." Progress has expandeded its credit facility to C$650 million. Peters & Co. Ltd. was financial advisor to ProEx. BMO Capital Markets was financial advisor to Progress Trust. Scotia Waterous Inc. and Cormark Securities Inc. were special advisors to ProEx. CIBC World Markets Inc. and FirstEnergy Capital Corp. were special advisors to Progress Trust.