CANADA ENERGY ANNOUNCES FIRST MONTNEY HORIZONTAL WELL AT PEACE RIVER
January 5, 2010
VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE: CE) is pleased to announce that the Operator of the Peace River Deep Prospect has made the decision to drill the Portage c-20-E/94-A-4 well horizontally in the Montney formation. This decision was based, in large part, upon significant gas shows that were encountered in the Doig and Montney formations during the recent drilling of the vertical portion of this well. Horizontal drilling operations will begin immediately.
The vertical well was previously drilled through the Montney formation, logged and cored, and plugged back in preparation for horizontal operations. Operations were temporarily suspended over the Holidays while geological and engineering designs were finalized. Results will be released following a completion test of the horizontal well.
The Joint Venture Partner must pay 100% of drilling and completion costs of this well and the next two wells in order to earn a 50% working interest in the Peace River Project. The Company will be carried for its 50% interest in the drilling and completion of one additional option well.
To the north of the Company’s Peace River Project in the Farrell area, Talisman has drilled 8 Montney wells, initiated production through a new gas plant, and holds 18 outstanding drilling permits. In the same area, Canadian Spirit and Canbriam have announced successful results on their most recent vertical well on their Farrell Project and are currently drilling their first horizontal well.
Canada Energy is an active oil and gas exploration and development company with approximately $7 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
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.