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CIBC New York Mini-Conference

Daniel Topolinsky, Executive Vice President Exploration & DevelopmentOctober 4th, 2011New York, New York

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This presentation 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 presentation include, but are not limited to production; reserves, resources and gas in place; market conditions; Progress' marketing strategy, including its hedging plans; projected 2011 production exit rate and average production; Progress's future plans and objectives, including, but not limited to, targeted production, reserves inventory and asset base, hedging plans, potential joint ventures and asset sales; potential drilling locations and drilling costs, including potential drilling pods and estimated drilling costs net of royalties; drilling plans for 2011; investment potential for Progress' assets; anticipated production, exploration and development capital, net A&D expenditures, corporate royalties and operating and transportation costs; capital expenditures; effects of price sensitivities on cash flow; estimated tax pools; projected timing of development of Progress's Montney projects; undeveloped land holdings; reserve life index; product mix; business strategy; future development and growth prospects, profile targets and rates; prospects; asset base; tax pools; down-spacing potential; exploration risk; access to capital; future cash flow, value, debt levels and debt to cash flow; capital investment and expenditure programs and the funding thereof; anticipated cash-on-cash yield; net asset value; credit facility; statements with respect to levels of dividends to be paid to shareholders, dividend policy, the timing of payment of such dividends; the effect of the North Montney Joint Venture on the Company's growth strategy; the economic and environmental benefits of the North Montney Joint Venture; the terms of the North Montney Joint Venture framework agreement; the effect of transactions on Progress' development of its unconventional assets and Montney land holdings; the terms of LNG Export Joint Venture; the results of the feasibility study to evaluate the building and operation of an LNG export facility; the effect of LNG Export Joint Venture on British Columbia natural resources and long term local benefits; the terms of standby equity financing commitment; Progress' business strategy, priorities and plans; the focus of capital expenditures, the timing of capital spending and the results therefrom; the focus of the Company's exploration and development efforts; potential capital investment opportunities; expected sources of capital funding; and future demand for natural gas.

The forward-looking statements and information are based on certain key expectations and assumptions made by Progress, including expectations and assumptions concerning prevailing commodity prices and exchange rates, applicable credits, royalty rates and tax laws; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; completion of definitive documentation; receipt of all required regulatory approvals; and the availability and cost of labour and services and future operating costs. 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.

Advisory on Future Oriented InformationPage 1

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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 risks associated with the oil and gas industry in general such as operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve and resource estimates; the uncertainty of estimates and projections relating to test rates, reserves, resources, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; the risk that the North Montney Joint Venture or the LNG Export Joint Venture are not completed on the terms described or at all; failure to receive all required regulatory approvals; failure to realize the anticipated benefits of the Transaction or the LNG Joint Venture; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this presentation in order to provide security holders with a more complete perspective on the Company’s future operations in respect of the North Montney Joint Venture and the LNG Export Joint Venture and such information may not be appropriate for other purposes. 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. Readers are cautioned that the foregoing lists of factors are not exhaustive. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Progress are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Progress undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or

otherwise, unless so required by applicable securities laws.

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Advisory on Future Oriented Information

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TSX: PRQ

Current production capability ~45,000 boe/d

Production split 87% natural gas, 8% NGLs, 5% light oil

Common shares outstanding 229 MM, 234 MM F.D.

Bank debt at June 30, 2011 nil

Convertible debentures $475 Million

Dividend $0.40 per share per year ~3.5% yield

Enterprise value @ September 2011 $3.3 Billion

Directors, Mgmt & Employees 7% of direct, 10% F.D.

Tax pools ~$2.2 Billion

Corporate Overview

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A New Era of Growth

VISION

Line of sight to double the Company’s production and reserves with an inventory defined today

KEY TAKEAWAYSGrowth Potential

• Reserves/Production/CF/NAV

Tight Gas inventory• Repeatable Plays with top quartile returns

Montney Inventory• Unparalleled opportunity set

Time expenditures to cycles• Be flexible

VancouverVancouverCalgaryCalgary

FoothillsFoothills

Deep BasinDeep Basin

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Tight Gas - NW Alberta Deep BasinPremier Part of the Basin

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Ownership and Access to Infrastructure

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Greater Gold Creek Premier Area of the Deep Basin

KEY ATTRIBUTES• Discovered in 1970’s• Over 6 TCF produced to date • Over 14 producing formations• Area operators include CNRL,

Devon, Conoco, BP (Apache)

PROGRESS ADVANTAGE• 360,000 net acres• Current production of 14,000 boepd• Ownership in three area gas plants• Extensive owned and operated

infrastructure• High WI ownership• 120 wells drilled since 2005

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NW Alberta Deep BasinGeological Setting

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Multi-zone Potential1,300m of Stacked Zones

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Nikanassin Potential Stacked Channels

• Multiple stacked channel trends – up to 40 m of pay

• New technology unlocks tight gas• Co-developed new “SlikPro” frac

system• Repeatable initial rates

of 1 to 3 mmcf/d from subeconomic

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Greater Gold Creek – Natural GasTop Tier Economics

Typical Gold Creek Well

Drilling Cost ($K) 1,100

Completion Cost ($K) 900

Equip & Tie-in Cost ($K) 300

Total Well Cost ($K) 2,300

Typical IP (mmcf/d) 1.8

Typical EUR (bcf) 2.0

ROR at $5.00/GJ flat (%) 64

PIR at $5.00/GJ flat 1.0

Production Cost ($K/boepd) 7.30

Half-cycle F&D Cost ($/boe) 6.90

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Emerging Deep Basin OpportunityDunvegan Light Oil

24 miles

• Over 60 miles mapped fairway• Three horizontal Dunvegan light oil

wells drilled since Q4 2010• First month average of 300 boepd• Produced oil is both light & sweet• Mixed channel & shoreface sands• > 50 Dunvegan locations identified

on 160 acre spacing• Aggressive 2012 drill program

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Emerging Deep Basin OpportunityDunvegan Light Oil

• 80% of Progress land oil prone

• High working interest• Contiguous holdings• Control access, pipelines and

roads 39 KM

Oil Prone Fairway

Gas Prone Fairway

Conventional Trap

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Emerging Deep Basin OpportunityDunvegan Channel Well

1475 m

1500 m

24 m of Oil pay

1460 m

• > 6 million bbls oil IP/section

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Emerging Deep Basin OpportunityDunvegan Channel Well

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• Average well cost is $4MM all in• No water in the system• Modest stable GOR

Dunvegan Daily Rates

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Deep Basin - Emerging Montney PlayProgress 140,000 net Montney acres

CONOCO AND ENCANA ACTIVITY

DAYLIGHTTEST – 9.1 mmcf/d

NUVISTA HZl TESTEDAT 7.0 mmcf/d

PROGRESS VERTICALTEST 0.7 mmcf/d

PARAMOUNT10 Hzls DRILLED

PROGRESSVERTICAL MONTNEY DISCOVERY

TOURMALINE2 HZL up to 7.5 mmcf/d

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Deep Basin Building Value for Shareholders

• Industry leading returns

• 300,000 net undeveloped acres with multiple horizons

• Emerging plays

• Dunvegan – Light oil cash flow driver

• Montney – Actively being pursued by competitors

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• Progress in the Deep Basin - 2012

• Prove up additional Dunvegan oil

• Monitor Montney activity

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Montney Drives “A New Era of Growth”

• Economics among best in North America

• Technological advances and cost reduction continuing

• Aggressive de-risking continues

• PETRONAS Strategic Partnership accelerates development

• Eight development pods defined to date

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• Visible inventory of 2,500 – 7,500 locations

• Potential capital investment of up to $40 billion

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CIBC New York Mini-Conference

Daniel Topolinsky, Executive Vice President Exploration & DevelopmentOctober 4th, 2011New York, New York