Fortress Energy Inc. Announces Its 2008/09 Winter Capital Program and Hedging Activities

CALGARY, ALBERTA--(Marketwire - Oct. 24, 2008) - Fortress Energy Inc. ("Fortress" or the "Company") (TSX: FEI.TO) is pleased to announce its 2008/09 winter capital program and the hedging activities it has pursued for the 2009 calendar year.

Hedging Program:

Fortress has sold forward 5,100 GJ/d through December 31, 2009 representing 60% of its current production at an average price of $8.17 per mcf. The aggressive hedging program locks in cash flows regardless of commodity price fluctuations.

2008/09 Capital Program:

Square Creek Development

Fortress will be pursuing two additional development wells to further delineate the Square Creek Bluesky and Notikewan pools. One of the locations will be drilled and completed as a dual zone, optimizing production and reducing capital deployed. Fortress is working with the owner of the Clear Prairie facility to debottleneck the facility and associated infrastructure, thereby allowing an increase in net production from the current rate of 466 boe per day to 650 boe per day and accommodating additional gas volumes from the 2008/2009 winter capital program.

Square Creek Exploration

Fortress will drill a newly defined structure at Square Creek, which is believed to be a separate structure from the existing Bluesky and Notikewan pools that currently produce approximately 5.8 mmcf/d and are estimated to contain 17 bcf of recoverable reserves. If successful this well will lead to further development activity in future years.

Pine Creek Area

Fortress will commence drilling a high-impact exploration well in the Pine Creek area on its 100 percent-owned lands in early November 2008. The drilling location is offsetting a well currently producing 5.0 mmcf/d. If successful, this well can be placed on stream in the first quarter of 2009.

Ladyfern Area

Fortress has over 50 development locations on it properties in the Ladyfern area in which it owns between 60% and 100% working interest. The Company is evaluating the number of drilling locations it intends to include in the 08/09 winter capital program.

Issuer Bid

On October 9, 2009 Fortress announced that it intends to purchase certain of its common shares by way of a normal course issuer bid through the facilities of the Toronto Stock Exchange (the "TSX"). Fortress may purchase up to a maximum of 1,351,014 common shares, which represents approximately 5% of its current issued and outstanding common shares, during the twelve month term of the issuer bid. Fortress is of the view that it shares are trading at a price well under the replacement value of it assets. The current share price reflects a value of each proven barrel of oil equivalent owned by the Company to be only $7.71 per boe or $1.28 per mcf.

Mr. Bailey said "The winter capital program has been designed to provide the highest possible return on capital deployed. The Company will be spending within its cash flow and will still be able to show substantial growth in production and provide significant upside from exploration activity."

Caution to Reader

This news release contains forward-looking information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Fortress at the time of preparation, may prove to be incorrect. The actual results achieved in future periods will vary from the information provided herein and the variations may be material. Consequently, there is no representation by Fortress that actual results achieved during future periods will be the same in whole or in part as the information contained herein.

The common shares of Fortress have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.

Contacts

Mr. J. Cameron Bailey
Fortress Energy Inc.
President and Chief Executive Officer
(403) 290-2450
(403) 398-3351 (FAX)
Email: cbailey@fortressenergy.ca

Mr. Jamie Jeffs
Fortress Energy Inc.
Chief Financial Officer
(403) 290-2470
(403) 398-3351 (FAX)
Email: jjeffs@fortressenergy.ca
Website: www.fortressenergy.ca