Drilling Success Results in Record Exit Production Rates, Significant

Infrastructure Expansion

CALGARY, April 15 /CNW/ - (TSX - PXE) - ProEx Energy Ltd. ("ProEx" or the "Company") today provided an operational update on its first quarter activities.

Exploration Update

As winter advanced opening up access into more remote areas, ProEx pushed northward in its exploration programs into Caribou and Buckinghorse areas. In addition to recording a new 200 square kilometer 3D program over company controlled lands, ProEx operated or participated in 26 wells (18.28 net) in the quarter. Of the 26 wells drilled during the quarter 20 wells are on stream and the majority of the balance of 6 wells will be tied-in during the third quarter.

In total five new pool discoveries were made during the first quarter. Two 100-percent working interest Debolt discoveries were made in the Caribou area building on the successes of the fourth quarter 2007 deeper exploration program. The Halfway exploration program continued in the quarter with new discoveries being made at Beg, Green and Caribou all of which will provide development drilling in the upcoming quarters. The Caribou discovery pushes the Halfway potential over 36 kilometers north of ProEx's closest Halfway pool, significantly expanding the production fairway. Additional infill and pool extension Halfway wells were also completed at Bubbles and Sasquatch.

Eight vertical pool extension wells and a medium reach horizontal well that utilized limited entry multi-stage fracturing technology were drilled at Julienne in the Gething formation. The Julienne horizontal well was drilled due to surface access restrictions and provided an opportunity for the Company to test the application of this technology. A second horizontal well, a more conventional horizontal test, was completed in the quarter at Bernadet in the Coplin member of the Triassic Charlie Lake formation. This well is expected to be tied-in and on production in the third quarter.

The Company is planning a number of other horizontal wells later this year. Each test will employ limited-entry/multi-stage fracture treatment technology. Two or three of these wells will target tighter Halfway reservoirs in previously discovered pools. Over the past four years at least five new Halfway pools have been discovered but left undeveloped due to encountering lower grade reservoir with tighter permeabilities. Capital was allocated elsewhere on the Halfway trend where other more attractive opportunities and land expansion initiatives could capture as much of the available mineral rights as possible. This expansion initiative will continue during 2008 as well as the testing of the commerciality of some of these previously identified pools. At least two wells in higher grade Halfway reservoirs, likely in the Caribou/Green areas, will also be drilled with this technology due to significant geographic obstacles inherent in the region.

With the new Buckinghorse 3D data and exploration successes during the winter, ProEx is well positioned for its exploratory and stepout drilling program for the balance of the year at Caribou, Buckinghorse, Julienne and Sasquatch which will feed both recently constructed and expanded facilities. The drilling program will target a growing inventory of other 3D defined gas rich reservoirs in addition to the traditional Halfway formation which is targeted for approximately 65 percent of the Company's drilling. The balance of the year will also see continued development drilling at Bubbles.

The Company's land acquisition program is expected to accelerate for the remainder of 2008 as ProEx continues in its expansion of its gas directed opportunities in the Foothills. During the first quarter 8,000 net acres were added via crown land sales.

Operations Update

During the first quarter of 2008, the Company undertook a number of facility projects including;

    
    -  In early April, a 7.2 kilometer pipeline at Caribou which required two
       river crossings, the Buckinghorse River and a tributary each requiring
       a one kilometer river bore, was completed. The first phase of the
       Caribou pipeline was completed in the fourth quarter and consisted of
       a 10 kilometer section connecting directly into Keyera's Caribou gas
       plant.

    -  Following the drilling success at Sasquatch during the fourth quarter
       of 2007 and the first quarter of 2008, the Company expanded its Dogrib
       facility adding a compressor which has increased the capacity of the
       plant to 18 mmcf per day.

    -  The Company completed a line loop at Julienne to ease back pressure
       from increased volumes. A compressor expansion at the Julienne
       facility, originally planned for the second quarter, was completed
       during March. Capacity of this plant is now 25 mmcf per day.

    -  At Julienne, in partnership with the government of British Columbia,
       the Company completed construction of a pipeline to tie-in stranded
       gas at North Julienne.

    -  Also, in partnership with the government of British Columbia, the
       Company completed the building of a pipeline to tie-in stranded gas in
       the recently acquired Blair property. This project was connected to
       the Company's Gundy facility.
    

ProEx is working with third parties to expand processing capacity in the Caribou area, north and south of the Buckinghorse River, by the first quarter of 2009.

Production Update

The Company's successful first quarter drilling program along with the completion of the facility construction mentioned above has allowed ProEx to reach a current production rate of over 13,000 boe per day which is consistent with the original production target. Production for the first quarter of 2008 is expected to average approximately 10,500 boe per day compared to 9,680 boe per day in the fourth quarter of 2007 and 6,735 boe per day in the first quarter of 2007. First quarter production was lower than originally forecasted by the Company due to extreme cold weather related problems and some level of construction delays.

Production guidance for 2008 remains unchanged with production expected to average between 12,000 and 13,000 boe per day. Average production in 2008 includes the scheduled plant turnaround at the Spectra owned McMahon gas processing facility which will be shut down for a period of approximately 22 days in June. Exit rate production in 2008 is expected to be in the range of 14,000 to 15,000 boe per day.

2008 Capital Investment Program

The Company's 2008 capital investment program remains unchanged at approximately $150 million. Approximately 65 percent will be directed toward drilling and includes the drilling of approximately 45 net wells.

Strong Balance Sheet

The Company now has approved bank lines totalling $225 million increased from $185 million. This increased credit capacity, combined with the improved natural gas pricing environment, has the Company well positioned to finance its 2008 program internally.

Hedge Position

ProEx has hedged 40,000 gigajoules (GJ) per day (approximately 35 million cubic feet per day), or approximately 50 percent of its before royalty forecast natural gas production, for the period from April 1, 2008 through to October 31, 2008 at an average equivalent AECO net floor price of C$7.90 per thousand cubic feet (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 AECO net gas price of C$9.00 per mcf.

CIBC World Markets 2008 Energy Conference

Mr. David Johnson, President and Chief Executive Officer of ProEx, will present at 8:30 a.m. eastern time, (6:30 a.m. Calgary time), on Tuesday, April 15, 2008. Interested investors may access the audio webcast at http://www.welcome2theshow.com/avwtelav/cibc2008energy and can access a copy of the presentation slides at ProEx's website at www.proexenergy.com.

First Quarter Release Date

The Company is scheduled to release its first quarter results on April 28, 2008 after the close of markets.

Annual General Meeting

The Company's Annual and Special Meeting is scheduled for 3:30 PM on Tuesday April 29, 2008 at the Petroleum Club, 319 - 5th Avenue S.W. Calgary, Alberta.

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