CANADA ENERGY PARTNERS ENTERS INTO FARM-IN AGREEMENT TO DRILL MOOSEBAR SHALE HORIZONTAL WELL
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 7, 2008) - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE) is pleased to announce that it has entered into a farm-in agreement (the "Agreement") with its joint venture partner (the "JV Partner") for Moosebar Shale shallow rights on its Peace River CBM Project. This agreement covers the Moosebar Shale formation on Canada Energy's 50,000 acre (approximately 78 sections) Peace River CBM Project. Under the Agreement Canada Energy will become the Operator of the Moosebar Shale rights.
In addition to its current 50% working interest, Canada Energy has the right to earn an additional 25% to 37.5% working interest in the Moosebar Shale formation by funding 100% of the drilling costs of the earn-in wells. Subject to certain drilling obligations and elections by the JV Partner, Canada Energy will have the right or option to earn an aggregate 75% to 87.5% interest in the Moosebar Shale under the subject acreage. Canada Energy will earn one (1) section for each Moosebar Shale vertical well drilled and two (2) sections for each Moosebar Shale horizontal well drilled. The Company has a 180 day rolling option to drill earning wells until all acreage is earned.
Canada Energy has received a permit for its first Moosebar Shale horizontal well and expects it to be drilled and completed before year-end 2008. The location of the first well has been chosen where an unstimulated natural gas flow occurred from the Moosebar Shale formation while drilling a deeper CBM well.
Canada Energy Partners is an active oil and gas exploration and development company. Canada Energy possesses a large concentrated land position in a high-impact, multi-zone, natural gas-bearing area in northeast British Columbia.
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 company's 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 company 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.
Canada Energy Partners Inc.
Chief Executive Officer