Canadian Quantum Energy Corporation

Canadian Quantum Energy Corporation

December 23, 2010 07:30 ET

Canadian Quantum Commences Exploration Activities In Western Canada

CALGARY, ALBERTA--(Marketwire - Dec. 23, 2010) - Canadian Quantum Energy Corporation ("Canadian Quantum" / "the Company") (TSX VENTURE:CQM) announces the acquisition of a 50% working interest in approximately 2,880 acres of P&NG rights in central Alberta along with the right to farm-in on favourable terms to approximately an additional 5,120 contiguous acres. All of the lands are prospective for liquids rich gas production from a regionally developed sheet sand and are in proximity to a number of offsetting vertical wells with significant gas shows and production rates of up to 1 Million Cubic Feet ("mmcf") per day with approximately 40 barrels of liquids production per mmcf of gas. In addition to the purchase price of CDN$250,000 the Company has a one well commitment with rolling options to drill three additional earning wells on the 5,120 acre farm-in block.

In this regard Canadian Quantum will participate with its operating partner, a private oil and gas producer, in the drilling of a horizontal test well on the farm-in block in the first quarter of 2011. This well will test the horizontal potential of the prospective zone and will access approximately 1,000 meters of gas charged sand along the length of the horizontal section. It is anticipated that eight to ten fracture stimulations will be performed in the well bore. The lands are in close proximity to existing pipeline and processing and compression infrastructure. Should the initial test well prove to be a success, the Company has identified over 20 additional development locations on the acquired lands and farm-in block.

Doug Brett, President of Canadian Quantum commented, "This deal is pivotal for our Company as it provides significant near-term potential in an affordable play that has excellent upside combined with low risk repeatability. This prospect complements our work in the St. Lawrence Lowlands, Quebec Utica Shale Play where Canadian Quantum holds various interests in approximately 174,000 gross acres covered by four permits.

This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. A description of assumptions used to develop such forward-looking information and description of risk factors that may cause actual results to differ materially from forward-looking information can be found in Canadian Quantum's disclosure documents on the SEDAR website at Canadian Quantum does not undertake to update any forward-looking information except in accordance with the applicable securities legislation.

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.

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