Canada Energy Partners Inc.

Canada Energy Partners Inc.

November 20, 2006 14:35 ET

Canada Energy Partners Inc. Closes Initial Public Offering Trading to Commence on TSX Venture Exchange

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 20, 2006) - Canada Energy Partners Inc. ("Canada Energy" or the "Corporation") is pleased to announce the closing of the initial public offering (the "Offering") on November 17, 2006, pursuant to the final prospectus of the Corporation dated October 30, 2006. Canada Energy raised aggregate gross proceeds of $5,100,000 by the issuance of 3,120,000 common shares at a purchase price of $1.00 per common share and 1,800,000 common shares issued on a "flow-through basis" under the Income Tax Act (Canada) at a purchase price of $1.10 per share. Haywood Securities Inc. acted as Agent for the Offering and received a commission payable by the issuance of 380,000 common shares of the Corporation. In addition, the Corporation issued to the Agent 50,000 common shares of the Corporation in payment of a corporate finance fee, and granted to the Agent and its sub-agents an aggregate of 492,000 non-transferable common share purchase warrants which entitle the holders to purchase one common share of the Corporation at a purchase price of $1.00 per share for a period of 24 months from the closing of the Offering.

The proceeds of the Offering will be used for the exploration and development of the Peace River coalbed methane project (the "Peace River CBM Project" or the "Project") in northeast British Columbia and for general working capital purposes.

Canada Energy's common shares have been conditionally approved for listing on the TSX Venture Exchange and are expected to commence trading on Wednesday, November 22, 2006 under the symbol CE.

Concurrent with the closing of the Offering, the Corporation completed the acquisition of a 7.25% working interest in the Peace River CBM Project from Victory CBM, L.L.C. and CANJAM, L.L.C. by the issuance through instalments of an aggregate of 2,443,822 common shares in the capital of the Corporation.

Canada Energy is an oil and gas company engaged in the exploration for, and the acquisition, development and production of natural gas primarily from coal bed methane ("CBM"). The Corporation currently owns, or has the rights to earn, a 21% working interest in the Peace River CBM Project and an 18% working interest in the deep conventional gas rights on the lands covered by the Project.

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

John Proust, Director

This press release does not constitute an offer to sell or solicitation of an offer to sell of the securities in the Unite States. None of the securities described herein have been or will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and such securities may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration under the 1933 Act or compliance with an applicable exemption from such registration requirements.

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.

Contact Information

  • Canada Energy Partners Inc.
    John Proust
    (604) 909-1154
    (604) 488-0319 (FAX)