The North MontneyDaniel TopolinskyExecutive Vice President, Exploration & Development

Jim StannardSenior Vice President, Development

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• PETRONAS acquired 50% of Progress’ interest •Altares•Lily•Kahta

• JV Comprises 149,910 gross working interest acres

• ~20% of Progress North Montney lands (gross)

• ~10% of Progress North Montney lands (net)

• Capital budget being expanded • $387MM for 2011/12• $341MM for 2012

• Three rigs operating in Q4 2011

North Montney Joint Venture

KAHTA

LILY

ALTARES

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Altares – Active Area

TLM/SASOLCYPRESSDEVELOPMENT5 Hzls

TLM/SASOLFARRELL CREEKDEVELOPMENT80 Hzls

CANBRIAMDEVELOPMENT7 Hzls

CNRLDEVELOPMENT2 Hzl2 licenses

CANBRIAMFARRELL CREEKDEVELOPMENT14 Hzls

T-North Pipeline

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Altares – 2012 Budget

• 8-10 horizontals in two or three pods

• Compressor station and associated

pipelines

• Refrigeration facility with 50 MMcf/d

capacity, expandable to 100 MMcf/d

T-North Pipeline

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Lily – 2012 Budget

• 9-11 horizontals in three pods

• Two compressor stations and

associated pipelines

T-North Pipeline

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Kahta – 2012 Budget

• 6-8 horizontals in two pods

• 4 vertical delineation tests

• One compressor station and

associated pipelines

T-North Pipeline

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NMJV Summary

Gross 100%($MM)

Capital Carry37.5%($MM)

PRQ net12.5% ($MM)

Wells (Gross)

Altares 125 47 16 8-10

Kahta 78 29 10 6-8

Lily 115 43 14 9-11

Other 23 9 2

2012 341 128 42 23-29

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Dominant Player in the North Montney

• The North Montney- Now on the global stage

• Ten pods in various stages of development

- Adding low cost, high netback production

• North Montney Joint Venture

- Aggressive plans for 2012

• Rich in Additional Opportunities

- Over 350,000 undeveloped acres

- Defining additional pods