Fortress Energy Inc.

Fortress Energy Inc.

April 22, 2008 19:37 ET

Fortress Energy Inc. Provides an Update and Results From Its Winter Capital Program

CALGARY, ALBERTA--(Marketwire - April 22, 2008) -


Fortress Energy Inc. ("Fortress" of the "Company") (TSX:FEI) is pleased to provide the following update of winter operations focused on developing natural gas reserves in the general Ladyfern area in Northeast, BC, and Northwest, Alberta.

Capital Expenditures

Fortress incurred a $16.3 million capital expenditure program most directed at the development and tie-in of the Square Creek area. Of the total capital, $7.7 million will be recovered pursuant to an arrangement with a mid-stream service provider for the construction of a 41km natural gas pipeline to service the Square Creek Area.

Darren Jackson, Chief Operating Officer was quoted ..." we are very pleased with the outcome of our capital program. Being a winter access area there are many variables beyond our control and the weather cooperated allowing us to complete a very ambitious capital program."

Square Creek - North West, Alberta

Most of Fortress's winter capital program was focused on the follow-up to the discovery of the Blue Sky and Notikewin gas pools from the 2007 winter drilling program. Fortress drilled two additional wells in the Blue Sky formation and three wells in the Notikewin to better delineate the two structures. The Company constructed a 10 mmcf/d gathering and production facility to service eight wells it has in the area. From the drilling activity completed to-date, two additional Blue Sky locations and five additional Notikewin locations have been identified and will be pursued in the 2008/09 winter drilling program.

The Company has completed the construction of a 41 km pipeline to deliver the gas to the Clear Prairie gas plant to service the Square Creek area, the corridor along which it owns 41,800 net acres of land opening up a significant exploration area for the Company.

Current production from the Square Creek area is 5.0 - 6.0 mmcf/d (2.5 - 3.0 mmcf/d net) with significantly more production capacity from the eight wells recently tied into the gathering facility. At the Clear Prairie facility, Fortress has arrangements for 5.0 mmcf/d (2.5 mmcf/d net) of firm processing capacity and has processing service available on a best efforts basis for larger volumes. The Company plans on increasing production rates from Square Creek as processing capacity is made available.

John Milford, Executive Vice-President was quoted " ... the drilling results at Square Creek came in as we hoped, proving up additional locations for future drilling. The new pipeline corridor will open up a number of exploration opportunities to us in the 2008/09 winter season."

Ladyfern - North East BC

The Company installed booster compression in the Ladyfern area to service the Velma and Ladyfern North areas. The additional compression is expected to add approximately 500 mcf/d of additional production. The Company has identified 14 additional Notikewin development wells and three deeper exploration targets with an average working interest of 85%.

Production Rates

Fortress is currently producing 1,575 boe/d of sales gas with approximately 5.8 mmcf/d (2.9 mmcf/d net) of natural gas production from Square Creek area. After the start up of additional compression at Ladyfern, production will vary between 1,575 boe/d based on the minimum contract processing volumes from Square Creek and 1,800 boe/d based on 8.0 mmcf/d (4.0 mmcf/d net) of production from Square Creek. Fortress's ability to produce natural gas at optimum rate from the from the Square Creek area is restricted by processing capacity at the Clear Prairie Gas Processing Facility owned by a third party. Fortress is working with the third party to increase production capacity.

BOE Presentation

Natural gas reserves and volumes recorded in thousand cubic feet are converted to barrels of oil equivalent ("boe") on the basis of six thousand cubic feet ("mcf") of gas to one barrel ("bbl") of oil. The term "barrels of oil equivalent" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalent conversion method primarily applicable at the burner tip and does not represent a value equivalent at the wellhead.

Caution to Reader

This news release contain 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.

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