Canadian Energy Exploration Inc.
TSX VENTURE : XPL

November 29, 2010 08:55 ET

Canadian Energy Exploration Inc. Announces Spud of Exploratory Well and Granting of Options

CALGARY, ALBERTA--(Marketwire - Nov. 29, 2010) - Canadian Energy Exploration Inc. ("Canadian Energy" or the "Company") (TSX VENTURE:XPL) is pleased to announce it has spud the first of three exploratory test wells in accordance with a previously announced Agreement with a major oil and gas general partnership (the "Farmor") in the Hardy/Minton area of Southeast Saskatchewan, CEEI Hardy South 05-27-04-21W2M (the "Well").

Under the Agreement, this well and the other two exploratory earning wells must be drilled and completed, or abandoned, on or before March 31, 2011 or the Company will pay $500,000 to the Farmor.

The Well is licenced to a total depth sufficient to drill to 2300 meters and the estimated costs associated with drilling and casing, completing or abandoning the Well are $1,300,000.00.

The Agreement also provides that if the Company drills the initial three exploratory test wells plus an additional two option wells, all by March 31, 2011, the Company will earn 100% working interest in approximately 35,200 acres (55) sections.

The proceeds from the sale of Flow-Through Shares in the previously announced and closed private placement (October 21, 2010, and November 24, 2010) 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.

GRANTING OF OPTIONS

Effective November 29, 2010 the Board of Directors granted an aggregate of 3,210,000 options to officers, directors and consultants of which 1,760,000 options were granted to directors of the Corporation. 800,000 options represent the right to purchase one (1) common share of the Corporation at an exercise price of $0.39 per share on or before November 29, 2013 and 2,410,000 options represent the right to purchase one (1) common share of the Corporation at an exercise price of $0.39 per share on or before November 29, 2015. The grant of options is subject to TSX Venture Exchange approval.

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.com