Canadian Energy Exploration Inc.
TSX VENTURE : XPL

November 24, 2010 08:30 ET

Canadian Energy Exploration Inc. Announces Closing of Private Placement

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2010) - Canadian Energy Exploration Inc. ("Canadian Energy" or the "Company") (TSX VENTURE:XPL) is pleased to announce that it has closed its previously announced bought deal equity financing (see Canadian Energy's press release of October 21, 2010) and has issued 15,653,629 common shares ("Common Shares") at a subscription price of $0.22 per Common Share and 13,677,698 Common Shares on a "flow-through share" basis ("Flow-Through Shares") at a subscription price of $0.26 per Flow-Through Share for aggregate gross proceeds of CDN. $7,000,000 All of the Common Shares and Flow-Through Shares issued under the offering are subject to a hold period under applicable securities laws until March 24, 2011. Haywood Securities Inc. acted as sole underwriter for the distribution of 15,037,957 Common Shares and 13,677,698 Flow-Through Shares and 615,672 Common Shares were distributed directly by the Company.

The proceeds from the sale of Flow-Through Shares will be used to incur certain types of Canadian Exploration Expense ("CEE") and/or deemed CEE as defined in the Income Tax Act (Canada) and such CEE or deemed CEE will be renounced to subscribers of Flow-Through Shares for the 2010 taxation year. The net proceeds from the sale of the Common Shares will be used to fund the Company's ongoing capital program and for general working capital purposes.

Under the offering, officers and directors of Canadian Energy subscribed for an aggregate of 2,351,997 Common Shares and 1,238,464 Flow-Through Shares.

About Canadian Energy Exploration Inc.

Canadian Energy Exploration Inc. is a junior oil and gas company engaged in the exploration for and development and production of oil and natural gas reserves in Western Canada. The Company's common shares trade on the TSX Venture Exchange under the symbol "XPL".

Advisory

Certain statements and information contained in this press release, including but not limited to statements regarding the use of proceeds contain forward-looking statements. All statements other than statements of historical fact may be forward looking statements. These statements, by their nature, are subject to numerous risks and uncertainties, some of which are beyond Canadian Energy's control including the effect of general economic conditions, industry conditions, changes in regulatory and taxation regimes, volatility of commodity prices, escalation of operating and capital costs, currency fluctuations, the availability of services, imprecision of reserve estimates, geological, technical, drilling and processing problems, environmental risks, weather, the lack of availability of qualified personnel or management, stock market volatility, the ability to access sufficient capital from internal and external sources and competition from other industry participants for, among other things, capital, services, acquisitions of reserves, undeveloped lands and skilled personnel that may cause actual results or events to differ materially from those anticipated in the forward looking statements. Such forward-looking statements, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated in the statements made and should not unduly be relied on. These statements speak only as of the date of this press release. Canadian Energy does not intend and does not assume any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Canadian Energy's business is subject to various risks that are discussed in its filings on the System for Electronic Document Analysis and Retrieval (SEDAR).

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 release.

Contact Information

  • Canadian Energy Exploration Inc.
    Larry Buzan
    President and Chief Executive Officer
    (403) 229-2800
    buzan@cdnenergy.com
    or
    Canadian Energy Exploration Inc.
    Scott Koyich
    Investor Relations
    (403) 215-5979
    Skoyich@dskconsulting.ca