CANADA ENERGY PARTNERS INC. ANNOUNCES PRODUCTION DRILLING ON ITS PEACE RIVER CBM PROJECT
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2008) - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE) is pleased to announce the start of production drilling on its Peace River CBM (Coal Bed Methane) Project (the "Project"). Canada Energy has a 50% working interest in the Project. A drilling rig will drill five (5) new production wells, one after another, as part of the 2008 Development Program previously announced in the Company's January 29th, 2008 news release. The 2008 Development Program includes the drilling and completion of five (5) new production wells, the connection of three (3) existing wells, construction and installation of gas treating and compression facilities, a pipeline and connection to Spectra's (formerly Duke Energy's) transcontinental pipeline, and the initiation of natural gas production from eight (8) wells.
The operator has completed the clearing of the pipeline right-of-way, the gas plant site, and the five drilling locations. Installation of the gathering lines to the eight wells is almost complete.
Canada Energy expects gas sales from the Project to commence in Q4/2008.
The Peace River CBM Project has 315 potential well locations (based on 160 acre spacing) on approximately 50,188 acres located in the Peace River area near Hudson's Hope in northeast British Columbia. Since 2001 over $36 million CAD has been invested in the Project, with seventeen (17) wells drilled consisting of nine (9) production-tested wells, four (4) water disposal wells and four (4) core holes. A third party engineering report estimates the gross discovered resource on the Project to be over 2.3 TCF (trillion cubic feet) of raw natural gas excluding carbon dioxide.
On behalf of the Board of Directors of Canada Energy Partners Inc.
John Proust, Director
Forward Looking Statements: This press release contains forward looking statements relating to expected or anticipated future events and operations, number of wells to be drilled, timing of projects and anticipated 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 companies' capability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. There is no representation by the companies that actual results achieved during the forecast period will be the same in whole or in part as that forecast.
The TSX Venture Exchange does not accept responsibility for the adequacy or the accuracy of this release.
Canada Energy Partners Inc.
(604) 909-1154 or Direct: (604) 895-7445
Fax: (604) 488-0319
Canada Energy Partners Inc.
Chief Executive Officer
Direct: (225) 928-9980