CANADA ENERGY PARTNERS INC. MEETS SIGNIFICANT MILESTONE – RECEIVES FEASIBILITY PLAN APPROVAL FROM B.C. OIL AND GAS COMMISSION
October 4, 2007
Canada Energy Partners Inc. (“Canada Energy” or the “Company”) is pleased to announce that Hudson's Hope Gas Ltd., a subsidiary of GeoMet Inc. (NASDAQ:GMET), the Operator of the Peace River Coalbed Methane (CBM) Project (the “Project”) has received approval from the British Columbia Oil & Gas Commission (“OGC”) for the Feasibility Plan, which is the comprehensive plan for the previously announced 25 well program and installation of gas treating, compression, and transportation facilities. The Operator is applying for the specific pipeline, facilities, and well permits and has already applied for drilling permits for two (2) water disposal wells. The drilling of a third disposal well is planned for this winter, depending on the results of the foregoing operations. Design work continues on the facilities and pipeline installations. The drilling of 25 development wells and facilities installation is expected to commence in Q2 2008.
The Company is also pleased to announce that the Operator of the Peace River CBM Project has successfully completed consultations with the community of Hudson’s Hope.
The Company also wishes to announce the closing of the acquisition of oil and gas assets (the “Acquisition”) from Triumph Pacific Oil and Gas Corporation (“Triumph”). The Acquisition was previously announced in the Company’s news release dated September 18, 2007. As a result of the Acquisition, the Company acquired oil and gas assets in the Peace River area of the northeast British Columbia which consists of farm-in deep rights to 30,411 net acres, all depths rights to 8,796 net acres, deep rights to 3,003 net acres and shallow farm-in rights to 1,825 net acres.
Canada Energy has also secured a $1.2 million bridge loan from its bank to provide the Company with liquidity for working capital purposes. The bridge loan is secured by the Company’s investment in Canadian asset backed commercial paper.
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.