CANADA ENERGY PARTNERS ANNOUNCES SUCCESSFUL COMPLETION OF DRILLING
September 7, 2010
VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE: CE) is pleased to announce, the completion of drilling operations on its second horizontal Montney well located on its Peace River Project in northeast British Columbia.
The Portage 3-12-82-26 was drilled horizontally in the Upper Montney formation with a horizontal displacement of 1,750 meters and a measured lateral length of 1,862 meters within the Montney formation. The Operator was only required to drill 1,400-meter lateral under the farm-in agreement. This compares to a 1,000-meter lateral drilled in the first horizontal well on the Peace River Project (see the Company’s news release dated July 6, 2010). The well has been cased pending a completion test which is expected to occur during October. The Operator has planned a 9-stage frac job, compared to a 4-stage frac on the first horizontal well (c-20-E) at Peace River. The c-20-E tested at 1.7 to 2.7 million cubic feet per day (mcf/day) with 579-1450 psi flowing casing pressure over an eleven day test or 420 mcf/d per frac treatment.
Activity at Farrell, immediately north of the Company’s Peace River Project, continues at a high level. Talisman has 4 drilling rigs operating at Farrell and are expanding their gas plant, Canbriam/Canadian Spirit have 2 drilling rigs running at Farrell and recently announced test rates from their first Lower Montney well of approximately 1 million cubic feet per frac stage. On August 5th, Terra Energy announced a test rate of 13.2 million cubic feet per day on their Farrell 10-22-83-25 well from a 41.5 hour test with an 1800-meter lateral and a 9-stage frac.
The Company owns a 50% interest in a gas plant and pipeline connection approximately 7 miles southwest of the 3-12 well which can be utilized to market gas from these first two horizontal wells. Initial engineering estimates for that connection have been completed.
The Company has 42 net sections of Montney rights in northeast British Columbia, representing 168 potential net Montney drilling locations.
Canada Energy is an active oil and gas exploration and development company with approximately $3.8 million of working capital. The Company 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.
CANADA ENERGY PARTNERS INC.
1500 – 885 West Georgia St.
Vancouver, BC V6C 3E8
Main Phone: (604) 909-1154 / Facsimile: (604) 488-0319
Attention: John Proust, Chairman
Email: [email protected]
Direct Phone: (604) 696-9020
Attention: Ben Jones, President and CEO
Email: [email protected]
Direct Phone: (225) 388-9900
The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Forward Looking Statements: This news release contains forward looking statements relating to expected or anticipated flow rates, timing for drilling and completion operations, 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.