Progress Energy Trust Announces Third Quarter Cash Distribution and Operational Update

CALGARY, July 15 /CNW/ - (TSX-PGX.UN) -- The Board of Directors of
Progress Energy Ltd. today announced that it has established the monthly
distribution at $0.14 per trust unit for Progress Energy Trust ("Progress" or
"Trust") for the third quarter of 2005. A monthly distribution of $0.14 per
trust unit has been declared for the month of July. The distribution will be
paid on August 15, 2005 to unitholders of record on July 31, 2005. The ex-
distribution date is expected to be July 27, 2005.

Record Date          Payable Date    Distribution per unit
July 31              August 15       $0.14
August 31            September 15    $0.14(x)
September 30         October 17      $0.14(x)

(x)Estimated distributions based upon current commodity price outlook and
are subject to change.

OPERATIONS UPDATE
Progress farms-in on lands in the Deep Basin area
During the second quarter, Progress continued to strengthen its land
position in the Deep Basin area through a farm-in arrangement with a large
U.S. producer. The Trust will earn 22 sections of land contiguous with its
existing land base which encompasses nearly 160,000 net undeveloped acres in
this multi-zone, gas prone region. In total, Progress holds nearly 600,000 net
acres of undeveloped land.

Drilling success continues in the second quarter
During the second quarter, Progress drilled 8 gross wells (4.5 net) with
a 78 percent success rate which included three gross wells (2.2 net) in the
Deep Basin of northwest Alberta, three wells (1.2 net) in northeast British
Columbia and two wells (1.1 net) in south central Alberta. The Trust currently
has four drilling and four service rigs operating on its lands.

Production at full capacity after McMahon turnaround
Daily production for the second quarter averaged approximately 17,550
barrels of oil equivalent (BOE) which includes the impact of the previously
planned and announced McMahon gas processing facility shutdown. The McMahon
facility has returned to full capacity and Progress' current production rate
is approximately 18,300 BOE per day with approximately 500 BOE per day
awaiting tie-in.

Gas hedging program completed for winter 2005/2006
Progress recently completed its winter 2005/2006 hedging program through
a series of costless collars on approximately 10,000 gigajoules (GJ) per day
at an average floor price of C$8.33 per GJ and an average ceiling of C$9.80
per GJ at AECO. The Trust has hedged 40,000 GJ per day, or close to one-half
of its before royalty gas production, for next winter at an average floor of
C$7.87 per GJ and an average ceiling of C$9.70 per GJ at AECO. The Trust uses
a consistent hedging program as a means to protect its cash flows and provide
greater certainty of distributions.

Progress is a Calgary based, natural gas focused trust targeting
sustainable production and reserves per unit through the utilization of its
technical capability and capital investment efficiencies. Primary operating
areas include the Deep Basin of northwest Alberta and the Foothills and Plains
regions of northeast British Columbia. Units of Progress trade on the Toronto
Stock Exchange (TSX) under the symbol PGX.UN. Exchangeable Shares of Progress
Energy Ltd. trade on the TSX under the symbol PGE and its convertible
debentures trade on the TSX under the symbol PGX.DB.

Forward-Looking Statements - Certain information regarding Progress set
forth in this document, including management's assessment of Progress'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 Progress'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. Progress'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 Progress will derive therefrom.
%SEDAR: 00009589E