Canada Energy Partners Option to Purchase Montney Rights Exercised and Reduction of Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 26, 2014) -

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Canada Energy Partners Inc. (TSX VENTURE:CE) (the "Company") is pleased to announce that an undisclosed party (the "Purchaser") has exercised its option to purchase the Company's Montney shale lands and wells in accordance with the Option to Purchase Agreement previously announced by the Company on April 1, 2014 (the "Sale Transaction"), subject to the amendments described below. Concurrently with the exercise of the option, the Purchaser and the Company have agreed to amend the Option to Purchase Agreement to provide for a $350,000 reduction in the purchase price to be received by the Company. This reduction in the purchase price was the result of a compromise reached between the Company and the Purchaser in order to remove certain third-party encumbrances encumbering the Company's Montney rights. Accordingly, the Company anticipates that it will receive $15,720,000 plus applicable GST upon closing of the Sale Transaction, subject to adjustment. The closing of the Sale Transaction is subject to the prior receipt of shareholder and regulatory approval and the approval of the TSX Venture Exchange.

Following the completion of the Sale Transaction, the Company intends to distribute to shareholders as a reduction of capital (the "Distribution") up to an aggregate of approximately $12,204,000, of the net proceeds of the Sale Transaction, representing up to approximately $0.135 per common share. The balance of the net proceeds of the Sale Transaction will be used for the payment of transaction costs, the repayment of certain debts owning to the Purchaser, working capital purposes and the development of the Company's remaining assets.

The Company will hold a special meeting of shareholders to be held on July 29, 2014 to vote on the Sale Transaction and the Distribution. A circular containing the details of the Sale Transaction and Distribution will be mailed to shareholders shortly.

The Company's shallow rights, gas plant, water disposal wells, and coal bed methane wells are not subject to the sale and shall be retained by the Company.

CIBC World Markets Inc. acted as financial advisor to the Company with respect to this transaction.

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

John Proust, Chairman

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward Looking Statements: This press release contains forward looking statements relating to expected or anticipated future events, including the completion of the Sale Transaction and Distribution, that are forward looking in nature and, as a result, are subject to certain risks and uncertainties, such as risks relating to the receipt of necessary shareholder and regulatory approvals, and the fulfillment of other conditions precedent to the closing of the Sale Transaction. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.