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Press release from PR Newswire

Spectra Energy and Progress Energy Resources Corp. Enter Agreements on Midstream Services for Montney Production in British Columbia

Wednesday, October 19, 2011

Spectra Energy and Progress Energy Resources Corp. Enter Agreements on Midstream Services for Montney Production in British Columbia13:11 EDT Wednesday, October 19, 2011 VANCOUVER, Oct. 19, 2011 /PRNewswire/ - Spectra Energy Corp (NYSE: SE) today announced the execution of multi-year agreements between Spectra Energy and Progress Energy Resources Corp. ("Progress") to provide a total 370 MMcf/d of natural gas gathering and processing services to support the development of Montney production in Progress' core development area in northeast British Columbia. The agreements provide for 210 MMcf/d of new service, in addition to the renewal of current contracts, which allows Spectra Energy to continue to provide natural gas gathering and processing to much of Progress' incremental production in the area. Spectra Energy is the leading provider of natural gas gathering and processing services in the expanding Montney play through more than 2,200 kilometres of gathering pipeline and interests in ten processing plants with over 1.5 Bcf/d of gas processing capacity. These gathering and processing services will be provided to Progress at Spectra Energy's Highway, Jedney and McMahon facilities, and, through reactivation of the Aitken Creek Gas Plant. "We have a strong track record with over 54 years experience in northeast British Columbia in providing our customers with safe, reliable and competitive services," says Doug Bloom, president, Spectra Energy Transmission West. "Our depth and breadth of services in the region position us as a strategic partner in supporting Progress' success in the development of this major unconventional resource play." The Montney play is a world-class unconventional natural gas resource in northeast British Columbia and northwest Alberta.  It is estimated to contain approximately 450 Tcf of original gas in place. With over 850 employees across British Columbia, Spectra Energy is well positioned to continue leveraging existing assets and in developing new infrastructure to facilitate supply growth with timely, cost-effective infrastructure solutions for its customers. Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's premier natural gas infrastructure companies serving three key links in the natural gas value chain: gathering and processing, transmission and storage, and distribution. For more than a century, Spectra Energy and its predecessor companies have developed critically important pipelines and related infrastructure connecting natural gas supply sources to premium markets. Based in Houston, Texas, the company's operations in the United States and Canada include approximately 19,100 miles of transmission pipeline, more than 305 billion cubic feet of storage, as well as natural gas gathering and processing, natural gas liquids operations and local distribution assets. The company also has a 50 percent ownership in DCP Midstream, one of the largest natural gas gatherers and processors in the United States. Spectra Energy is a member of the Dow Jones Sustainability World and North America Indexes and the U.S. S&P 500 Carbon Disclosure Project's Carbon Disclosure Leadership Index. For more information, visit www.spectraenergy.com. SOURCE Spectra Energy Corp.For further information: <p> </p> <table border="0"> <tr> <td valign="top" align="left" nowrap="nowrap"> <b>Me</b><b>dia: </b> </td> <td nowrap="nowrap"> <br/> </td> <td nowrap="nowrap">   </td> <td nowrap="nowrap"> <br/> </td> <td nowrap="nowrap"> Rosemary Silva<br/> (604) 488-8147<br/> (713) 627-4747 (24-hour media line) </td> </tr> <tr> <td>   </td> <td>   </td> <td>   </td> <td>   </td> <td>   </td> </tr> <tr> <td valign="top" align="left" nowrap="nowrap"> <b>Anal</b><b>ysts: </b> </td> <td nowrap="nowrap">   </td> <td nowrap="nowrap">   </td> <td nowrap="nowrap"> <br/> </td> <td nowrap="nowrap"> John Arensdorf<br/> (713) 627-4600 </td> </tr> </table> <p>   </p>