January 22, 2010 12:17 ET

Circumpacific Energy Corporation: Press Release

CALGARY, ALBERTA--(Marketwire - Jan. 22, 2010) - Circumpacific Energy Corporation (TSX VENTURE:CER) ('Circumpacific') advises that it has received notice from the operator of Kakwa Main Gas Unit (the "Gas Unit") that an error in allocation of revenues in the unit has been detected that resulted in overpayment to partners in the Gas Unit. The operator has estimated that Circumpacific has received overpayments of approximately $339,000.

Under the Unit Agreement, Circumpacific is entitled to a working interest in non-associated gas only. The assertion is that for the period of January 1, 2004 to January 1, 2009 the operator errantly paid oil and associated gas revenues to the partners in the Gas Unit.

Circumpacific's management is in the process of confirming the final amount. In the meantime, the Company will work with its advisors to formulate a repayment plan that will be in accordance with appropriate accounting standard; as well as minimize the effect on the Company's cash flow.

Further information on Circumpacific's operations can be found on or on its corporate website

Bradley Lingo, President & CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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