NEW LEASES ACQUIRED FOR PEACE RIVER PROJECT
March 27, 2007
Canada Energy Partners Inc. (“Canada Energy” or the “Corporation”) is pleased to announce that Hudson’s Hope Gas Ltd. (a subsidiary of GeoMet Inc. – NASDAQ: GMET), the operator of the Peace River Project for the shallow rights (“shallow rights”) has acquired five new drilling licences encompassing 3,149 hectares (7,781 acres) adjacent to the existing acreage of the Peace River Project located in the Peace River Plains area near Hudson’s Hope, British Columbia. These additions increase the land position of the Peace River Project from 36,687 acres to approximately 44,468 acres.
Canada Energy currently owns, or has the rights to earn, a 21% working interest in the shallow rights. The Corporation recently announced (see March 26, 2007 press release) the acquisition of additional interests in the Peace River Project. Upon completion of the Acquisition, the Corporation will increase its ownership of the shallow rights to a 49% working interest and an additional 3.71% after payout working interest for a total interest of 52.71% after payout. In addition, the Corporation will increase its ownership in the deep rights to a 21.5% working interest and a 5% overriding royalty payable on 74% of the production, convertible on payout into an additional 23% working interest for a total interest of 44.5% after payout. GeoMet Inc., an experienced coalbed methane producer, is the operator and 50% working interest owner in the shallow rights. Triumph Pacific Oil & Gas Corporation is the operator and a 53% after payout working interest owner in the deep rights.
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
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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.