PETRONAS and Progress Working Cooperatively to Address Investment Canada Announcement

CALGARY, Oct. 22, 2012 /CNW/ - PETRONAS Carigali Canada Ltd ("PETRONAS Canada") and Progress Energy Resources Corp. ("Progress") (TSX:PRQ) announced today that they will be meeting with officials from Industry Canada in Ottawa to better understand Industry Canada's requirements with respect to the proposed acquisition of Progress by PETRONAS Canada.

Based on the announcement by the Minister of Industry on Friday October 19, 2012, PETRONAS Canada has up to 30 days, or longer as mutually agreed to, to make any additional representations and submit any further undertakings.  PETRONAS and Progress will work together to ensure that the Minister has the necessary information to determine that the proposed acquisition of Progress would likely be of net benefit to Canada.

In conjunction with this 30-day period, and at PETRONAS Canada's request, Progress has agreed to waive the 10 day notification period required to extend the "Outside Date" under the arrangement agreement between the two companies.  Under the agreement, PETRONAS Canada has the right to extend the Outside Date for up to an additional 90 days, in 30 day increments, if required regulatory approvals have not been obtained.  If the Outside Date is not extended, the agreement will still continue in effect until terminated by either party.

About PETRONAS
PETRONAS is the national oil and gas company of Malaysia. Incorporated in 1974 the company, ranked among the most profitable among the Fortune Global 500 entities, is engaged in the oil, gas and petrochemicals industries with strategic business assets and interests in more than 30 countries. It is one of the world's leading LNG companies and is fully involved in every value chain of the LNG business, from liquefaction and shipping to re-gasification and trading. Apart from its Malaysian production facility, currently one of the world's largest, PETRONAS also owns interests in LNG assets in Australia and Egypt.

About Progress Energy
Progress is a Calgary, Canada-based Energy Company focused on exploration, development and production of large, unconventional natural gas resources in northeast British Columbia and northwest Alberta. Progress holds the largest acreage position in the Montney shale gas play. Throughout its history, Progress has a solid track record of growing reserves, production and the underlying value of the Company for its shareholders. 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.  In particular, forward looking statements in this press release include, but are not limited to, statements regarding plans to meet with Industry Canada officials in Ottawa.

The forward-looking statements and information are based on certain key expectations and assumptions made by Progress, including, among other things, the ability to obtain all required regulatory approvals for the Arrangement. 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 risk that the Arrangement may not close when planned or at all or on the terms and conditions set forth in the arrangement agreement; and the failure to obtain the necessary regulatory approvals required in order to proceed with the Arrangement.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Progress are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com).

The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the Company will derive there from.  These forward-looking statements are made as of the date of this press release and the Company disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE: Progress Energy Resources Corp.

Progress Energy Resources Corp.
Greg Kist
Vice President, Marketing, Corporate and Government Relations
403-539-1809
[email protected]

MEDIA ENQUIRIES:
Emma Stevens
403-531-0331