PETRONAS Extends the Outside Date under Arrangement Agreement with Progress

PETRONAS Carigali Canada Ltd ("PETRONAS Canada") and Progress Energy Resources Corp. ("Progress") (TSX:PRQ) announced today that PETRONAS Canada has exercised its right under the arrangement agreement between the parties to extend the "Outside Date" under the agreement to November 30, 2012.  The Outside Date was originally established as October 31, 2012. Under the agreement, PETRONAS Canada has the right to extend the Outside Date from October 31, 2012 for up to 90 additional days, in 30 day increments, if the required regulatory approvals have not been obtained.  After the Outside Date, either party has the right to terminate the agreement.

PETRONAS Canada and Progress have met with officials of Industry Canada to understand the basis for the October 19, 2012 announcement by the Minister of Industry.  As noted in the release by the Minister, PETRONAS Canada has up to 30 days from the date of the announcement to make any additional representations and submit any further undertakings.  PETRONAS Canada intends to make further submissions to the Minister in order to obtain approval of the proposed transaction.

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 make further submissions to Industry Canada and the results therefrom.

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 completion of the transaction. 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 acquisition may not close when planned or at all or on the terms and conditions set forth in the agreement; and the failure to obtain the necessary regulatory approvals required in order to proceed with the transaction.

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.