Canada Energy Partners Inc.

Canada Energy Partners Inc.

December 17, 2008 08:30 ET

Canada Energy Announces First Deep Well Intersects 615 Meters of Montney/Doig Formation on Peace River Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2008) - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE) is pleased to provide an update on the Montney and other deep formations exploration program currently underway on its Peace River Project (the "Project") located in northeast British Columbia. The Peace River Project's deep rights include approximately 33,000 acres or 51 sections (51 square miles).

A thick zone of approximately 615 meters (2,018 feet) of Montney/Doig formation was encountered during the drilling of the first Montney exploration well announced by the Company on October 16, 2008. Canada Energy's Joint Venture Partner is the Operator of the deep rights on the Peace River Project and has indicated that the evaluation of 3D seismic data will provide valuable information for the completion of this well. The 3D seismic program over 29 sections (29 square miles) is currently underway with the anticipated completion of the 3D shoot in early Q1 2009. Completion of this first well is expected in Q1 2009.

Canada Energy Partners has a 50% working interest in the deep rights on 51 sections (51 square miles) on the Peace River Project. The current exploration program is being fully funded by the Joint Venture Partner to earn its 50% working interest. The funded exploration program on the Peace River Project includes the drilling of four wells (one drilled), one option well and completion of 3D seismic program.

Canada Energy's Peace River Project is located immediately south of Talisman Energy's Farrell Project in northeast British Columbia near Hudson's Hope. On December 10th, 2008 Talisman Energy presented its Farrell Project to Hudson's Hope Town Council, in which Talisman stated the following: (1) approximately $300 million was spent by Talisman purchasing leases in the area, (2) Talisman drilled several vertical test wells, one of which tested 4MMCF/D (4 million cubic feet per day) from the Montney formation, (3) Talisman is currently drilling its first horizontal Montney well, (4) Talisman plans to drill 7 additional Montney wells and install a gas plant in 2009, (5) Talisman plans to develop 60 sections in 3 formations with 5 horizontal wells per formation per section, and (6) "this will represent $7.5 billion in capital requirements over a 10 year period" by Talisman in this area.

On behalf of the Board of Directors of Canada Energy Partners Inc.

John Proust, Director

Forward Looking Statements: This press release contains forward looking statements relating to expected or anticipated 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.

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

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