Canadian Energy Exploration Inc.
TSX VENTURE : XPL

February 28, 2011 08:35 ET

Canadian Energy Exploration Inc. Operations Update

CALGARY, ALBERTA--(Marketwire - Feb. 28, 2011) - Canadian Energy Exploration Inc. (the "Company") (TSX VENTURE:XPL) reports results from its three well drilling program in the Hardy/Minton area of southeast Saskatchewan:

The Company has drilled and cased all three farmin commitment wells in the previously announced Hardy/Minton Area Farmout (see Press Release dated October 21, 2010). Each of the three wells is under various stages of evaluation:

  • The first exploratory test well is located at CEEI Hardy South 5-27-4-21W2M and is cased to a total depth of 2300 metres. After completions of the Duperow and Bird Bear formations proved wet, this well was completed in the Ratcliffe/Mississippian formation, pump tested with no hydrocarbon in this zone. The well may be further evaluated for potential in the Bakken formation.

  • The second exploratory test well is located at CEEI Hardy South 16-1-5-21W2M and is cased to a total depth of 2174 metres. After coring, this well was completed in the Midale Vuggy and Marly formations with no produced hydrocarbons and is now being evaluated for potential in the Ratcliffe/Mississippian formation.

  • The third exploratory test well is located at CEEI Hardy South 5-17-5-21W2M and is cased to a total depth of 2108 metres. We are waiting for a completion rig to test the Bakken and the Basal Colorado formations.

Under the Farmout, the Company has received an extension from March 31, 2011 to June 30, 2011 to elect to drill option wells to earn the remaining 30.5 sections lands under the Farmout.

In addition to the above activity, the Company was active at the February 7, 2011 Saskatchewan crown mineral rights land sale and purchased 6 lease parcels (1554 hectares.) At this sale parties, including the Company's 6 parcels, purchased 22 parcels in the Hardy-Minton area for over $6,000,000 at an average price per hectare of $584.23. Included was a 5 section block which sold for over $3,000,000 adjacent to a newly drilled horizontal Bakken well at 9-6-6-21W2, and two newly licenced Bakken horizontal wells at 13-32-5-21W2 and 13-6-6-21W2, less than 2.4 kilometers northwest of the Company's newly acquired block of lands. The wells mark an increased level of Bakken activity from 4 operators in the immediate area.

The Company is actively pursuing acquisition and farmin opportunities in addition to the above described activities.

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 including statements regarding the Company's business, such as drilling and completion of wells, acquisition and farmin activities 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 the Company'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. The Company 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. The Company'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