Progress Energy Takes Charge of B.C. Foothills Assets

Progress Energy Resources has successfully closed the previously announced acquisition of certain northeast British Columbia Foothills assets. Progress financed the Acquisition, and a portion of the Corporation's 2010 capital program, through a $350 million subscription receipt private placement with the Canada Pension Plan Investment Board and a concurrent $250 million subscription receipt bought deal public financing through a syndicate of underwriters led by BMO Capital Markets.

The Acquisition adds production of approximately 7,300 barrels of oil equivalent (boe) per day comprising 91 percent natural gas, proved plus probable reserves of approximately 42.6 million boe effective as of December 31, 2009 and approximately 188,000 net acres of undeveloped land. The assets are contiguous with Progress' current producing properties in the Foothills of northeast British Columbia. No material rights-of-first-refusal were exercised in conjunction with the Acquisition.

Pursuant to the financing, Progress issued 47,630,000 Subscription Receipts at $12.60 per Subscription Receipt for gross proceeds of $600 million. With the closing of the Acquisition, trading in the Subscription Receipts will be halted and will remain halted until the close of business today, March 31, 2010, at which time the Subscription Receipts will be de-listed.

In accordance with their terms, each Subscription Receipt was deemed to have been exchanged for one common share ("Common Share") and such holders will be entitled, provided they continue to hold the Common Shares received pursuant to their Subscription Receipts at the close of business on March 31, 2010, to receive Progress' quarterly dividend expected to be paid on April 15, 2010 to Progress' shareholders of record on March 31, 2010.

 

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