ProEx Energy Increases 2008 Capital Investment

Provides Operations Update on Summer Drilling

CALGARY, Sept. 10 /CNW/ - (TSX - PXE) - ProEx Energy Ltd. ("ProEx" or the "Company") today increased its 2008 capital investment program by approximately 15 percent to between $180 and $190 million. The increase is a result of the on-going success in the Company's stated 2008 growth catalysts and will allow the Company to maintain its accelerated pace of drilling activity through year-end.

Exploration Update

ProEx has five drilling rigs and three service rigs operating in the field at present. The Company anticipates keeping these rigs running constantly through to the end of the winter drilling season. Since the start of the third quarter, a total of 16 wells (12.6 net) have been successfully drilled and tested. Wet weather has not impeded the rate of drilling activity but has slowed completion and tie-in activities. At present, three net wells have been tied-in while the balance of the wells are expected to be brought into the Company's gathering system prior to quarter end.

ProEx had previously identified various 2008 growth catalysts that, with success, could lead to an accelerated pace of activity and higher capital investment. The Company sought to continue the success of its Mississippian Debolt program in the Caribou area to the southern regions of its Foothills land base. To date in the quarter, two 3-D defined Mississippian tests have been drilled and will be tested over the upcoming months. An additional three Mississippian tests will be drilled before year-end.

The Halfway formation is the Company's primary growth driver in the Foothills of northeast British Columbia. Advances in horizontal drilling and completions technologies have created the opportunity to investigate full scale development and delineation of previously discovered Halfway pools. This will include the drilling of both mid and lower grade reservoirs positioned on the crests and flanks of known anticlines as well as accessing reservoirs in areas where surface topography is not conducive to conventional operations.

To date, ProEx, along with its working interest partner, has completed its first multi-stage fracture stimulation on an existing horizontal well at Bubbles (40 percent WI) and has drilled, and is currently completing, its first grass roots horizontal well at Dogrib (80 percent WI).

The well completed at Bubbles was originally drilled in 1999 and flowed minimal gas on test from the Halfway, is now flowing at 2.2 million cubic feet per day at high flowing pressures since being tied-in two weeks ago. The approximate 750 meter horizontal portion was completed with six separate fracture stimulations, tested and then tied-in to production facilities.

More recently, in the Dogrib Halfway pool, a 1000 meter horizontal well was successfully drilled on budget and is currently being prepared for a multi-stage completion. The Company's next horizontal well is drilling in the Caribou area into better quality Halfway sands. An additional three (2.4 net) Halfway horizontal wells will be drilled prior to year-end and will utilize multiple-lateral fracture techniques. ProEx will continue to evaluate the application of this technology over many of its known Halfway pools including; Sasquatch, Gundy, Bubbles and Town.

At Julienne, the Company's Cretaceous program continues to achieve strong success with six wells drilled to date in the third quarter. The drilling program successfully extended the Gething Pool to the north in the Julienne area while also contributing a new pool discovery at Julienne North. A further eight wells are currently planned to the end of the year at Julienne following up on these successes.

Undeveloped Land Growth and Large Seismic Program Planned

Additions to the Company's undeveloped lands in the third quarter total approximately 24,000 net undeveloped acres. In 2008, over 88,000 undeveloped acres have been added to lands under ProEx's control which now total over 518,000 net undeveloped acres. The Company's land acquisition program will continue for the remainder of 2008 as ProEx targeting expansion of its natural gas opportunities in the B.C. Foothills.

ProEx has permitted approximately 425 square kilometers of land for seismic data acquisition. Several of these programs are anticipated to be shot during the first quarter of 2009. The Company has used 3-D seismic extensively to define sub-thrust features in the Mississippian and Triassic sections. In total, the Company currently has over 2,200 square kilometers of 3-D seismic data in the Foothills.

Facilities Construction

In addition to the tie-in of the above noted wells, the Company recently commenced construction of a new compression and sales facilities at Beg which will add an incremental six million cubic feet ("mmcf") per day of processing capacity at Beg. In total, ProEx has 10 plants providing in excess of 120 mmcf per day of processing capacity in the Foothills.

The expansion of the third-party owned Caribou facility in the northern portion of the Foothills is progressing on schedule for completion by the end of the first quarter of 2009.

The Company is again partnering with the province of British Columbia on infrastructure development. ProEx has been approved for the construction of a gathering pipeline system in the Caribou area. This project is expected to be completed during the fourth quarter.

Production Update

Production for the third quarter of 2008 is expected to average approximately 11,300 to 11,400 boe per day compared to 8,677 boe per day in the third quarter of 2007 and 10,449 boe per day in the second quarter of 2008. Third quarter production is lower than originally anticipated by the Company due to wet field conditions, which has delayed completions and tie-in activities, and unscheduled plant and gathering system downtime at third-party facilities. Exit rate production, supported by existing wells in the process of being tied-in and an active second half drilling program, remains unchanged and is expected to be in the range of 14,000 to 15,000 boe per day. ProEx has pre-invested in several processing facilities and pipeline arteries in its operating areas during 2008 and is now positioned to bring newly discovered natural gas to market on a timely basis.

2008 Capital Investment Program

The Company's 2008 capital investment program is being increased from the previous $150 to $160 million range to between $180 to $190 million based on the success of the drilling program to date and to position the Company for first quarter 2009 activity. A total of 50 to 55 net wells will be drilled during 2008. The Company has approved bank lines totalling $225 million and is well positioned to finance its 2008 program internally.

Hedge Position

ProEx employs an active risk management program to provide certainty to a portion of its cash flow supporting its capital investment program. The Company has hedged 40,000 gigajoules ("GJ") per day (approximately 35 mmcf per day), or approximately 50 percent of its before royalty forecasted natural gas production, for the period from April 1, 2008 through to October 31, 2008, at an average net floor price of C$7.90 per mcf based on the Company's high heat content natural gas production. The summer hedging program was completed using a series of swaps and bull spread structures. The swap and bull spread structure that ProEx utilizes sets a relatively high floor in the current market and allows participation up to an equivalent average summer 2008 net gas price of C$9.00 per mcf. The Company has also hedged 15,000 GJ's per day of it natural gas volumes for the period November 1, 2008 to March 31, 2009 resulting in a net floor of $11.18 per mcf and a ceiling of $14.64 per mcf.

Peters & Co. Limited 2008 North American Oil and Gas Conference

Mr. David Johnson, President and Chief Executive Officer of ProEx, will present at 3:15 p.m. eastern time, (1:15 p.m. Calgary time), on Wednesday, September 10, 2008. Interested investors may access a copy of the presentation slides at ProEx's website at www.proexenergy.com and access the audio webcast at http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2390300

ProEx Energy Ltd. is a Calgary Alberta based junior oil and natural gas company with operations in northeast British Columbia. Common shares of ProEx are listed on the Toronto Stock Exchange under the symbol PXE.

Forward Looking Statements - Certain information regarding ProEx Energy Ltd. set forth in this document, including management's assessment of ProEx Energy Ltd.'s future plans and operations, contains forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond ProEx Energy Ltd.'s control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. ProEx Energy Ltd.'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 ProEx Energy Ltd. will derive therefrom.

Contacts

Mr. David Johnson
President & CEO
Mr. Steven Allaire
Vice President Finance & CFO
ProEx Energy Ltd.
1200
205 - 5th Avenue S.W.
Calgary
Alberta
T2P 2V7
Phone: (403) 216-2510
Fax: (403) 216-2514
Email: ir@proexenergy.com
Website: www.proexenergy.com