CANADA ENERGY PARTNERS PROVIDES MONIAS UPDATE AND HIGHLIGHTS RECENT TRANSACTIONS
March 4, 2011
VANCOUVER, BRITISH COLUMBIA - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE: CE) is pleased to update activity proximal to its Monias property. In Q4 2009, Shell Oil drilled its Monias 4-11-81-21 1.5 miles from Canada Energy’s Monias lease line. Logs and cores on the 4-11 showed extraordinary reservoir thickness and quality. In the summer-fall 2010, Shell followed up the 4-11 with five horizontal wells drilled to within 150m - 800m of Canada Energy’s lease line. Completion operations were performed on two of the wells (see attached map) in December 2010. These two wells were tested at restricted rates of 7.1 and 6.5 million cubic feet respectively. Completion operations are currently being conducted on the three remaining wells, all of which are even closer to the Company’s lease line than the first two horizontal wells. Those results must be released within 30 days of completion and the Company will announce those results. The Company has permitted a drilling location directly offsetting the Shell wells.
Canada Energy has 42 net Montney sections and recent transactions in the Montney trend continue to confirm the value of the Company’s land base. Sasol (a global petrochemical group from South Africa) paid Talisman $1.05 billion for 40 net sections representing a 50% interest in the Farrell Project adjacent to Canada Energy’s Peace River Block. The China National Offshore Oil Corporation just announced the acquisition of a 50% interest in Encana’s Cutbank Ridge Project, southeast of the Company’s land base for $5.4 billion. Based upon details released by Encana, the Company estimates that CNOOC paid on average $4.4 million for each net undeveloped section.
The Company expects to release its year-end 2010 reserves later this month.
Canada Energy is an active oil and gas exploration and development company. 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.
For Further Information Please Contact:
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
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.