Canadian Energy Exploration Inc.
TSX VENTURE : XPL

August 20, 2010 09:00 ET

Canadian Energy Exploration Inc. Second Quarter Highlights 2010 and Update

CALGARY, ALBERTA--(Marketwire - Aug. 20, 2010) - Canadian Energy Exploration Inc. ("Canadian Energy" or the "Company") (TSX VENTURE:XPL) announces financial and operating results for the second quarter ended June 30, 2010 and an update of current activities. The unaudited financial statements as at and for the second quarter ended June 30, 2010, together with the notes thereto; and management's discussion and analysis of financial condition and results of operations as at and for the second quarter ended June 30, 2010 can be accessed electronically on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com

Second Quarter Highlights

  • On April 30, 2010 Canadian Energy filed its Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information for its year ended December 31, 2009. Canadian Energy also filed Form 51-101F2 - Report of Independent Qualified Reserves Evaluator and Form 51-101F3 - Report of Management and Directors, all under National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. These filings can be accessed electronically on the SEDAR website at: www.sedar.com.

  • Average gas production during the second quarter 2010 was 16.26 Boe per day - a 74.8% decrease from second quarter 2009 as a result of the production volume reduction; and average LPG production during second quarter 2010 was 3.32 Boe per day.

  • Petroleum and natural gas sales revenue was $58,828 – a 58.4% decrease from the second quarter 2009.

Operational Update

  • We have recently hired senior management who are actively engaged in pursuing light oil plays in both Alberta and Saskatchewan.

  • We acquired two Crown sale land parcels – one in each of SE Saskatchewan and Central Alberta – at recent land sales, following up on internally generated geological concepts.

  • The Company is actively negotiating to acquire further mineral lands through farmin and possible production additions with major land owners in both SE Saskatchewan and Central Alberta.

  • Current production is approximately 19 Boe per day.

  • Management is currently working on certain strategic alternatives including, but not limited to, recapitalizing the Company through financing arrangements.

  • The Company's head office has moved to Suite 500, 441-5th Avenue SW Calgary Alberta T2P 2V1.

Canadian Energy is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in Western Canada. Canadian Energy has 41,012,104 common shares issued and outstanding as at today's date.

In this Press Release the calculation of barrels of oil equivalent (Boe) is calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A Boe conversion ratio of 6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Canadian Energy's business, such as the review of strategic alternatives and establishing a portfolio base, which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Canadian Energy's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Canadian Energy believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Canadian Energy does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

About Canadian Energy Exploration Inc.

Canadian Energy Exploration Inc. is a junior oil and gas company engaged in the exploration for and development and production of natural gas and oil reserves. The Company's common shares are listed to trade on the TSX Venture Exchange under the symbol "XPL".

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 release.

Contact Information

  • Canadian Energy Exploration Inc.
    Larry Buzan
    President and Chief Executive Officer
    (403) 229-2800
    buzan@cdnenergy.com
    or
    Canadian Energy Exploration Inc.
    Scott Koyich
    Investor Relations
    (403) 215-5979
    Skoyich@dskconsulting.ca