Provident Announces Purchase of Saskatchewan-Based Oilfield Hauling Company

All values are in Canadian dollars.

Provident Energy Ltd. ("Provident") (TSX:PVE) (NYSE:PVX) is pleased to announce that it has reached an agreement to purchase a two-thirds interest in the equity of Three Star Trucking Ltd. ("Three Star"), a Saskatchewan based oilfield hauling company serving Bakken-area crude oil producers.

"The acquisition of this two-thirds interest in Three Star expands Provident's logistics footprint in the Bakken-area, one of the most exciting resource plays in North America, and creates a strong partnership with a highly regarded and growing player in the industry" said President and Chief Executive Officer, Doug Haughey.

Three Star is a privately held enterprise based in Alida, Saskatchewan operating in Saskatchewan, Manitoba and North Dakota, providing fee-for-service hauling of crude oil and related oilfield liquids for major Bakken area producers. Three Star has a new and well maintained fleet of approximately 170 tractors and 160 trailers. In addition to building a strong presence in crude oil hauling, the transaction will also provide Provident the opportunity to further expand its NGL and diluent logistics service businesses.

The transaction is valued at approximately $20 million, comprised of approximately $8 million in cash, 945,000 Provident shares and approximately $4 million of assumed bank debt and working capital. Provident will retain the option to purchase the remaining minority interest in Three Star after three years from the closing date, anticipated on or before October 1, 2011. This acquisition will be immediately accretive to both cash flow and earnings on a per share basis.

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