Progress Energy Resources 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.

Tags: Progress Energy Resources