Canada Energy Partners Inc.

Canada Energy Partners Inc.

October 16, 2008 08:30 ET

Canada Energy Partners Announces Drilling Completed on First Peace River Project Montney Exploration Well and the Initiation of Completion Activities

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 16, 2008) - Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE) is pleased to announce the completion of drilling on its first deep exploration well on the Peace River Project targeting the Montney and other deep formations. The well is currently being fractured and production tested in multiple formations and is scheduled to be completed in 30 to 60 days. The commencement of the drilling of this well was previously announced in the Company's July 7, 2008 news release. The Company owns 50% working interest in this well.

Canada Energy also is pleased to report that the permit was received for a 3D seismic shoot over 29 Peace River Project sections. This 3D seismic shoot is scheduled to commence this quarter.

Canada Energy Partners is an active oil and gas exploration and development company. Canada Energy possesses a large concentrated land position in a high-impact, multi-zone, natural gas-bearing area in northeast British Columbia. The Company is in a strong financial position with $22 million cash in the treasury and a large financial commitment from its joint venture partners to drill six (6) Montney exploration wells before March 31st, 2009 (2 drilled to date), four (4) option wells and shoot 3D seismic on Canada Energy's Peace River Project and Monias Prospect (completed), at no additional cost to the Company.

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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