Canada Energy Partners Inc.
TSX VENTURE : CE

Canada Energy Partners Inc.

May 18, 2011 08:30 ET

Canada Energy Partners Reports on Monias Activity

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2011) - Canada Energy Partners (the "Company") (TSX VENTURE:CE) is pleased to report on industry activity proximal to its properties in Northeast British Columbia.

Shell Canada ("Shell") released the test results on three additional horizontal Montney wells drilled to within 150m-600m of the Company's lease line at Monias. The A4 well had a final flowrate of 8.1 million cubic feet per day, with a peak flowrate during the test of 21 million cubic feet. The B4 well had final and peak rates of 6 and 10.4 million cubic feet per day. The C4 well had final and peak rates of 6.3 and 17.1 million cubic feet per day. These wells had horizontal lateral lengths of 1876-2269m and were fractured with 9, 10, and 11 stages respectively. The Company had previously reported (see March 4th news release) results on Shell's D4 and E4 wells which had final/peak flowrates respectively of 7.1/10.5 and 6.5/9.4 million cubic feet per day. Shell's gas analyses have not been released yet, therefore the liquid yield is unknown; however core data in their vertical pilot well had indications of liquids in the Montney.

Shell's Monias Offset Wells - Test Rate Summaries
Peak RateFinal RateHZ LengthFracProp
Wellmmcf/dmmcf/dbw/dftp-psi(m)StagesTonnes
A421.08.1183795187691214
B410.46.03892831916101214
C417.16.32754432269111502
D410.57.1454394167091210
E49.46.5274814177291228

Log evaluation of the Shell wells evidence extraordinary reservoir quality in the Upper Montney relative to the Heritage/Groundbirch/Septimus/Monias area and these well tests corroborate that log evidence.

The Company owns 100% of three(3) sections adjacent to the Shell property and a total of five net sections within the Monias block.

Based upon the initial two Shell tests, GLJ ascribed 17 billion cubic feet of proved and probable reserves net to the Company on just one(1) net section of the Company's Monias property.

To view the Monias Land Map, please click on the following link: http://media3.marketwire.com/docs/ce517a.pdf

Peace River

Talisman revealed at its Investor Day that it plans to spend $800 million in 2011 and a total of $1.6 billion on the Farrell Creek Project over the next two-three years. Performance based evaluation of their initial wells indicates the Farrell wells should recover 7 BCF/well with average initial potentials of 6 million cubic feet per day. Talisman estimates potentially recoverable gas at 120 BCF per section with the PV10% breakeven estimated to beat $3-3.50/mcf gas prices. Currently Talisman has 10 drilling rigs operating on the Farrell Project. Their mid-stream expansions include cryogenic natural gas liquids recovery equipment as the eastern portions of the Farrell Project have recoverable liquids. The Company believes that a significant portion of its Peace River lands are on thermal strike with Talisman's eastern acreage and, hence, may also have commercially recoverable liquids.

To view the Peace River Block Activity map, please click on the following link: http://media3.marketwire.com/docs/ce517b.pdf

SEPAC Presentation

The Company will be presenting at the SEPAC Spring Investor Showcase May 31st in Calgary. A recorded webcast of the presentation will be availableby Friday June 3rd.

Canada Energy is an active oil and gas exploration and development company.The Company possesses a large concentrated land position in a high-impact, multi-zone, natural gas-bearing area in northeast British Columbia.

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

John Proust, Chairman

Forward Looking Statements: This news release contains forward looking statements relating to expected or anticipated flow rates, timing for drilling and completion operations, 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 has neither approved or disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

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