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Provident Announces 2011 U.S. Tax Reporting Information

All values are in Canadian dollars.

CALGARY, Feb. 9, 2012 /PRNewswire/ – Provident Energy Ltd. (Provident)
(TSX-PVE; NYSE-PVX) announced today its 2011 U.S. Shareholder Tax

Provident is treated as a corporation for U.S. federal income tax
purposes. As a corporation, Provident’s dividends to U.S. shareholders
may be “qualified dividends” as determined under the U.S. Internal
Revenue Code.

Provided the dividends received by U.S. resident shareholders in 2011
are considered to be qualified dividends as noted above, 100 percent of
the dividends should be reported as “qualified dividends” with 0
percent being reported as tax deferred return of capital.

To assist with the preparation of 2011 U.S. tax information,
non-registered U.S. shareholders should receive a Form 1099-DIV from
their broker or intermediary. Provident’s transfer agent, Computershare
Trust Company, will issue a Form 1099-DIV to all registered U.S.

Dividends paid to non-residents of Canada were subject to withholding
tax at a minimum of fifteen percent, which was withheld prior to the
dividends being paid to the shareholder.  Dividends after January 2011,
paid into a U.S. qualified retirement account should not be subject to
any withholding taxes. Information regarding the amount of Canadian tax
withheld in 2011 should be determined from your own records and is not
available from Provident.

Tax information pertaining to 2011 and prior years is available on
Provident’s website at:

The summary contained in this news release is of a general nature only
and does not constitute and is not intended to be legal or tax advice
to any particular holder or potential holder of Provident shares
(units prior to January 1, 2011). Holders or potential holders of Provident shares are urged to consult
their own legal and tax advisors as to their particular income tax
consequences of holding Provident shares.

Provident Energy Ltd. is a Calgary-based corporation that owns and
manages a natural gas liquids (NGL) infrastructure and logistics
business. Provident’s facilities are strategically located in Western
Canada and in the premium NGL markets in Eastern Canada and the U.S.
Provident provides monthly cash dividends to its shareholders and
trades on the Toronto Stock Exchange and the New York Stock Exchange
under the symbols PVE and PVX, respectively.

This news release contains certain forward-looking statements concerning
Provident, as well as other expectations, plans, goals, objectives,
information or statements about future events, conditions, results of
operations or performance that may constitute “forward-looking
statements” or “forward-looking information” under applicable
securities legislation. Such statements or information involve
substantial known and unknown risks and uncertainties, certain of which
are beyond Provident’s control, including the impact of general
economic conditions in Canada and the United States, industry
conditions, changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, pipeline design and
construction, fluctuations in commodity prices, foreign exchange or
interest rates, stock market volatility and obtaining required
approvals of regulatory authorities. Such forward-looking information
is provided for the purpose of providing information about management’s
current expectations and plans relating to the future.  Readers are
cautioned that reliance on such information may not be appropriate for
other purposes, such as making investment decisions. 

Such forward-looking statements or information are based on a number of
assumptions which may prove to be incorrect. In addition to other
assumptions identified in this news release, assumptions have been made
regarding, among other things, commodity prices, operating conditions,
capital and other expenditures, and project development activities.

Although Provident believes that the expectations reflected in such
forward-looking statements or information are reasonable, undue
reliance should not be placed on forward-looking statements because
Provident can give no assurance that such expectations will prove to be
correct. Forward-looking statements or information are based on current
expectations, estimates and projections that involve a number of risks
and uncertainties which could cause actual results to differ materially
from those anticipated by Provident and described in the
forward-looking statements or information.

The forward-looking statements or information contained in this news
release are made as of the date hereof and Provident undertakes no
obligation to update publicly or revise any forward-looking statements
or information, whether as a result of new information, future events
or otherwise unless so required by applicable securities laws. The
forward-looking statements or information contained in this news
release are expressly qualified by this cautionary statement.

SOURCE Provident Energy Ltd.

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