Canada Energy Partners Inc.

Canada Energy Partners Inc.

August 23, 2007 08:30 ET

Canada Energy Partners Announces Increase in Land Position for Peace River Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2007) - Canada Energy Partners Inc. (TSX VENTURE:CE) ("Canada Energy" or the "Corporation") is pleased to announce that the Operator of the Peace River Coalbed Methane (CBM) Project (the "Project") has acquired six new drilling licences encompassing 5,720 acres adjacent to the existing acreage of the Project located in the Peace River Plains area near Hudson's Hope, British Columbia. These additions increase the land position of the Project by 13% from 44,468 acres to approximately 50,188 acres. The Company has sufficient working capital to fund this acquisition.

Canada Energy currently owns a 50% working interest in the Peace River CBM Project. Hudson's Hope Gas Ltd., a subsidiary of GeoMet Inc. (NASDAQ:GMET), is the Operator and 50% working interest owner of the Project. GeoMet recently announced a production decision with the final approval by GeoMet's Board of Directors to drill up to 25 initial wells on the Project (see GeoMet's August 14th, 2007 press release). The development plan also includes connecting 6 existing wells that were shut in after initial testing, the drilling of at least one more water disposal well and the installation of associated pipelines, treating and compression facilities necessary to initiate gas sales.

The Operator is currently conducting consultations with affected communities and First Nations (Canadian indigenous populations). Canada Energy Partners will continue working with the Operator on the planned commercial production of the Project. Further, Canada Energy Partners will continue exploring for conventional natural gas in the deep rights on the lands covered by the Project and in the Peace River area of British Columbia.

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

John Proust, Director

Forward-looking statements: This document may contain statements about expected or anticipated future events and financial 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 its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Act of 1995.

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

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