PROJECT OPERATOR DRILLS FIVE WELLS AND FRACTURE STIMULATES THREE WELLS
December 5, 2006
Vancouver – Canada Energy Partners Inc. (“Canada Energy” or the “Corporation”) is an oil and gas company engaged in the exploration for, and the acquisition, development and production of natural gas from conventional and unconventional reservoirs in the Western Canadian Sedimentary Basin. The Corporation currently owns, or has the rights to earn, a 21% working interest in the Peace River Coalbed Methane (“CBM”) Project (shallow rights) and an 18% working interest in the deeper conventional gas rights (deep rights) on the lands covered by the Project. The Corporation’s current working capital is sufficient to complete earn in obligations on the Peace River CBM Project.
Canada Energy Partners Inc (TSXV/CE) is pleased to announce the following update on its activities:
Peace River CBM Project (shallow rights)
The Operator of the Peace River CBM Project is Hudson’s Hope Gas Ltd. (a subsidiary of GeoMet Inc. – NASDAQ: GMET).
Five (5) new wells have been drilled on the Project in the third and fourth quarters. Two of these wells have been fracture stimulated and are currently being production tested. One additional well was fractured over the last 7 days. We anticipate that the fourth well will be fractured within the next 45 days. The fifth well has been drilled and cased pending evaluation of suitability for water disposal purposes. The fifth well was drilled deeper than any of the 14 wells drilled to date. Hudson’s Hope Gas Ltd. will continue to test the 4 production test wells into the first half of 2007 and attempt the completion of the disposal well.
Three prior production test wells have all been shut in after extended production testing.
GeoMet Inc. expects to make a development decision on the Peace River CBM Project in the first half of 2007 and is optimistic that the Peace River CBM Project will become a significant development project.
Deep Conventional Gas Rights (deep rights)
The Operator of the Deep Conventional Gas Rights is Triumph Pacific Oil & Gas Corporation(“Triumph”). Triumph has completed the acquisition and interpretation of 2D seismic data, of which Canada Energy is a participant and beneficiary.
Triumph Pacific has conducted its stakeholder consultations and has applied for a drilling permit for its Portage 8-23-81-26 well. Triumph expects to spud this first test well in January 2007. Canada Energy will have an 18% working interest after payout in this well.
Log evaluation of a well recently drilled by the shallow rights Operator to assess potential water disposal zones has yielded strong indications of gas productivity below the Gething formation in an undisclosed formation.
On behalf of the Board of Directors of
Canada Energy Partners Inc.
Canada Energy Partners Inc.
1500 – 885 West Georgia Street,
Vancouver, BC V6C 3E8 Canada
Telephone: 604-909-1154 Fax: 604-488-0319
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Forward-looking statements: This document may contain statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company’s capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Act of 1995.