Canadian Quantum Energy Corporation
TSX VENTURE : CQM

Canadian Quantum Energy Corporation

February 29, 2012 06:30 ET

Canadian Quantum To Spud Alexander Project Test Well

CALGARY, ALBERTA--(Marketwire - Feb. 29, 2012) - Canadian Quantum Energy Corporation ("Canadian Quantum" or the "Corporation") (TSX VENTURE:CQM) announces that it has received all regulatory approvals for both the drilling of the well Sundance Alexander 16-11-56-27 W4M test well ("16-11 Well") and for the shooting of a 3D seismic survey over a portion of the Corporation's Alexander First Nation Permit.

The surface lease for the 16-11 Well has been constructed and a rig contracted to commence drilling operations on March 3, 2012. The 16-11 Well that will be drilled to a total depth of approximately 1,300 meters subsurface will evaluate the hydrocarbon potential in the Ellerslie, Detrital and Wabamun formations. Drilling operations are anticipated to take approximately one week to complete.

The permitted 3D Seismic Program consists of approximately 9 square miles of shooting and recording and is expected to be completed and processed by the third week of March. Both the drilling operations for the 16-11 Well and the operations for the 3D Seismic Program are expected to be completed before "Spring Breakup" occurs.

The Corporation further announces its intention to complete a non-brokered private placement offering of a combination of common units at $0.20 per common unit and flow-through units at $0.25 per flow-through unit, for total gross proceeds of up to $500,000. Each common unit will consist of one common share and one-half of one common share purchase warrant. Each flow-through unit will consist of one common share to be issued on a flow-through basis and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to acquire one common share at a price of $0.40 per share for a period of six months after the closing.

A finder's fee of up to 8 percent of the gross proceeds of the offering may be paid, on all or any portion of the finances raised pursuant to this offering. In addition, finders will receive finders' warrants equal to up to 8 percent of the number of units issued in connection with the offering. Each finder's warrant will entitle the holder to purchase one common share at the subscription price of the units for a period of six months after the closing.

The closing of the offering is expected to occur on or about March 9, 2011 and is subject to regulatory approval, including approval of the TSXV. For further details on the offering, please contact the Corporation. All securities issued in connection with the offering will be subject to a hold period of four months from the date of closing. The net proceeds from the offering will be used to finance the Corporation's continuing capital program and for general working capital purposes.

About Canadian Quantum

Canadian Quantum is actively pursuing light oil opportunities in Western Canada. The Corporation holds 800 gross acres (360 net acres) at Turin Alberta and 17,280 gross acres / 27 sections (8,640 net acres) on the Alexander First Nation lands in Central Alberta along with various interests in approximately 174,000 gross acres covered by four permits in the St. Lawrence Lowlands, Quebec Utica Shale Play.

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 a description of risk factors that may cause actual results to differ materially from forward-looking information can be found in the Corporation's disclosure documents on the SEDAR website at www.sedar.com. The Corporation does not undertake to update any forward-looking information except in accordance with applicable securities laws.

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