ProspEx Resources Provides Operational Update

CALGARY, Sept. 9 /CNW/ - ProspEx Resources Ltd. ("ProspEx" or the "Company") is providing an operational update with respect to certain projects within its 2010 capital program.

"ProspEx is in the midst of an active summer drilling program, with the first well at Kakwa being successfully completed and two additional wells underway. Drilling activity is scheduled to start in Pembina later this month", said John Rossall, President and Chief Executive Officer.

In Kakwa, ProspEx's most recent Falher horizontal well at 13-8-64-4W6 (the "13-8 well") has been successfully drilled and completed. Following a multi-stage fracture stimulation treatment, the well flowed up a 4 1/2" casing string to clean up fracture fluids over a 58 hour period, with a final rate of 23.4 million cubic feet ("mmcf") per day at a flowing wellhead pressure of 1,017 pounds per square inch ("psi"). Following the clean up flow, the well was configured for production and tested up a 2 3/8" tubing string for 17 hours with a final rate of 13.0 mmcf per day at a flowing pressure of 811 psi. These initial rates are similar to the rates achieved during the initial testing of ProspEx's 15-19-64-4W6 well (the "15-19 well"), which is the best performing well of the three horizontal wells previously drilled by ProspEx at Kakwa.

The 13-8 well is expected to be tied into ProspEx's pipeline system in October, 2010. ProspEx is the operator and has a 59% working interest in the 13-8 well, with NAL Resources holding the remaining 41%.

Two additional horizontal wells are currently being drilled at Kakwa, one by ProspEx (59% ProspEx working interest) and a second by another joint venture operator (30% ProspEx working interest). The well currently being drilled by ProspEx is intended to evaluate the eastern boundary of the pool; while the well being drilled by the other joint venture operator is targeting a final bottom hole location immediately north of the 15-19 well. The 15-19 well came on production in February, 2010 at a facility restricted rate of 10 mmcf per day.

Additionally, ProspEx plans to spud its first horizontal well (100% working interest) at Pembina in West Central Alberta in September. This well will also target the Falher formation, and be ProspEx's first well on a 3,840 acre land position acquired in 2009.

The success of the 13-8 well at Kakwa, and the drilling activity planned for the coming months, provides increased visibility of ProspEx attaining its previously announced 2010 exit rate production guidance of 4,000 barrels of oil equivalent ("boe") per day.

ProspEx Resources Ltd. is a Calgary-based junior oil and gas company focused on exploration for natural gas in the Western Canadian Sedimentary Basin.

Reader's Advisory

Please be advised that the guidance regarding production may constitute a "financial outlook" as contemplated by National Instrument 51-102 of the Canadian Securities Administrators entitled Disclosure Obligations. The purpose of such guidance is to forecast the anticipated exit production for ProspEx for 2010.

Certain information contained in this press release constitutes forward-looking information or statements including, without limitation, information and statements respecting: anticipated capital expenditures, production forecasts, production additions and deletions, expected timing of drilling and completion of wells, expected timing of the tie-in of wells, expected timing of the receipt of regulatory approvals and expected timing of the completion of facilities projects.

Forward-looking information and statements are often, but not always, identified by the use of words such as "anticipate", "seek", "believe", "expect", "hope", "plan", "intend", "forecast", "target", "project", "guidance", "may", "might", "will", "should", "could", "estimate", "predict" or similar words or expressions suggesting future outcomes or language suggesting an outlook. By their very nature, forward-looking information and statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking information and statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to vary materially from the forward-looking information or statements. These factors include, but are not limited to: the volatility of oil and gas prices; production and development costs; capital expenditures; the imprecision of reserve and resource estimates and estimates of recoverable quantities of oil, natural gas and liquids; the Company's ability to replace and expand oil and gas reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions or dispositions; increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; compliance with environmental laws and regulations; changes in tax and royalty laws; the Company's ability to access external sources of debt and equity capital; and the Company's ability to obtain equipment in a timely manner to carry out development activities. Further information regarding these factors may be found under the headings "Description of the Business - Risk Factors Relating to Our Business" and "Industry Conditions" in the Company's most recent Annual Information Form, under the heading "Operational and Other Business Risks" in the Company's Management's Discussion and Analysis for the year ended December 31, 2009, and in the Company's most recent consolidated financial statements, management information circular, quarterly reports, material change reports and news releases available under the Company's profile on SEDAR (www.sedar.com). Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to the Company, investors and others should also carefully consider information set forth in the section "Forward-Looking Information" of the Company's most recent Annual Information Form respecting the assumptions upon which the Company bases certain forward-looking information and the uncertainties inherent in such assumptions.

The Company does not assume responsibility for the accuracy and completeness of the forward-looking information or statements and such information and statements should not be taken as guarantees of future outcomes. Subject to applicable securities laws, the Company does not undertake any obligation to revise these forward-looking information or statements to reflect subsequent events or circumstances. Furthermore, the forward-looking information contained in this press release are made as of the date of this document and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement.

For the purposes of this press release, boe has been calculated on the basis of six thousand cubic feet of gas to one barrel of oil. The term boe may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet to one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

%SEDAR: 00021285E

For further information: John Rossall, President and Chief Executive Officer or George Yee, Vice President Finance and Chief Financial Officer, [email protected], [phone]