Atlagas buys something

To Purchase 50% interest of Quatro's midstream assets, including its 87 percent interest in the 75 Mmcf/d Gilby Gas Plant

AltaGas Ltd. (TSX:ALA) (TSX:ALA.PR.A) (TSX:ALA.PR.U) (TSX:ALA.R) announced today that it has entered into an agreement with Quatro Resources Inc. to acquire 50% interest of Quatro's midstream assets, including its 87 percent interest in the 75 Mmcf/d Gilby Gas Plant for approximately $20 million. The acquisition is expected to close in third quarter 2012.

In addition, AltaGas will construct a 70-kilometre pipeline to connect the Gilby Gas Plant and AltaGas' 30 Mmcf/d Sylvan Lake Gas Plant to AltaGas' deep-cut, turbo expander facility at the Joffre Ethane Extraction Plant ("JEEP"). Increased volumes processed at the plant are expected to fully utilize JEEP's excess capacity.

"This project is another example of AltaGas' ability to integrate key assets and leverage existing capacity", said David Cornhill, chairman and chief executive of AltaGas. "We will be able to process gas in an area that is rich in liquids and short on deep-cut processing capacity."

The construction of the pipeline into West-Central Alberta will provide producers in the Hoadley Glauconite and Duvernay resource plays with increased recovery of natural gas liquids ("NGL"), improve their recoverable barrels of oil equivalent ("BOEs") and increase the value received for their ethane and other NGL products. The pipeline project is subject to customary conditions. The project is expected to cost approximately $100 million and be completed by late 2013.