CANADA ENERGY PARTNERS ANNOUNCES RESOLUTION OF MONIAS DISPUTE
September 30, 2010
VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE: CE) is pleased to announce that the Company and Daylight Energy Ltd. (“Daylight”) have mutually settled the legal dispute over the Seismic Option Agreement on the Company’s Monias Prospect (see the Company’s April 17, 2009 announcement). Under the terms of the settlement, Daylight will be deemed to have earned a 60% working interest in four sections and the 13-30-81-21 wellbore with the Company retaining a 40% working interest in the four sections and the 13-30-81-21 wellbore. Daylight will have no further earning rights in the Monias Prospect and the Company will retain a 100% interest in the four remaining sections in the Monias Prospect. Under the original terms of the Seismic Option Agreement, West Energy Ltd., a company acquired by Daylight in May 2010, had the option to earn a 65% interest in the eight sections comprising the Monias Prospect.
Offset operators continue to de-risk the Company’s Monias Prospect. Shell has drilled one vertical and four horizontal Montney wells immediately off the southeast corner of the Company’s Monias lease line and is currently drilling a fifth well. The Company owns 100% of the three sections closest to the Shell wells. Terra Energy is currently drilling a Montney test well 1.4 miles north of the Company’s north lease line and has four other Montney wells permitted in the immediate area.
Canada Energy is an active oil and gas exploration and development company with approximately $3.6 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.