CANADA ENERGY PARTNERS INC. TO ACQUIRE ADDITIONAL WORKING INTEREST IN THE PEACE RIVER PROJECT
May 28, 2007
Canada Energy Partners Inc. (“Canada Energy” or the “Company”) is pleased to announce that it has reached the agreement (the “Acquisition”) with BCAMS, LLC (the “Vendor”) to acquire an additional 0.55% working interest in the Peace River Coalbed Methane (“CBM”) Project (the “Project”) and 1.1% working interest in the deep conventional petroleum and natural gas rights (“deep rights”) on the lands covered by the Project. Upon completion of the Acquisition, the Company will increase its ownership of the Peace River CBM Project to a 49.5% working interest and an additional 3.71% after payout working interest for a total interest of 53.21% after payout. In addition, the Acquisition will increase the Company’s ownership in the deep rights to a 22.5% working interest and a 5% overriding royalty payable on 80% of the production, convertible on payout into an additional 23% working interest for a total interest of 45.5% after payout.
Under the terms of the binding offer to purchase, the Company has agreed to issue to the Vendor 157,300 common shares (the “Shares”) in the capital of the Company. The Shares are subject to a 4 month hold period required by applicable securities laws and the TSX Venture Exchange (the "Exchange"). The Acquisition is subject to acceptance of the Exchange. The Vendor is at arm’s length to the Company. The closing of the Acquisition is scheduled for June 6, 2007, or such other date as is mutually agreed by the parties.
The Peace River CBM Project consists of approximately 44,468 acres of prospective acreage in the Peace River area near Hudson’s Hope, British Columbia. GeoMet Inc. (“GeoMet”) (NASDAQ: GMET), an experienced coalbed methane producer, is the operator and 50% working interest owner of the Project. GeoMet Inc. expects to make the commercial development decision on the Project in June 2007. 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 www.canadaenergypartners.com
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