2009-08-05-2009-07-06-2009-10-23

Acquired addtl 50% WI in 32,000 gross acres in Square Creek, Alberta, gaining 5.2 Bcf proved, 2.7 MMcf/d.

Fortress Energy Inc., Calgary, (Toronto: FEI) has acquired a 50% additional working interest from its undisclosed partner in the Square Creek property in Alberta for C$7 million. Fortress now holds a 100% working interest in 32,000 gross acres. Production from the area has averaged 6 million cubic feet per day since June 2009 Fortress has chosen to limit production to approximately 5.4 million cubic feet per day until gas prices improve. The deal includes an additional 2.7 million cubic feet of gas per day of production and the potential to increase production from the area. Fortress' average working interest in all of properties increased from 67% to 80%, increasing its current production by 37% from 7.5 million cubic feet of gas per day to 10.2 million cubic feet and gives Fortress the opportunity to increase production further by improving capacity at the Clear Prairie gas plant. Fortress remains operator of the project. A Sproule Associates Ltd. estimates proved reserves of the interest acquired as of Dec. 31, 2009, to be total proved of 5.2 billion cubic feet and proved and probable reserves of 7.5 billion cubic feet. Fortress president J. Cameron Bailey says, "The acquisition is consistent with our strategy of 'buy and exploit' and the opportunity to buy high-quality gas producing assets is today. Upon closing the transaction, we will control 100% of the Square Creek property, thereby providing Fortress with a number of operational efficiencies that can be put in to place."