PETRONAS and Progress Working Cooperatively to Address Investment Canada Announcement

Oct 22, 2012

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.