Canext Energy Ltd.
TSX VENTURE : CXZ

Canext Energy Ltd.

March 13, 2008 16:48 ET

Canext Announces Light Oil Pool Discovery

CALGARY, ALBERTA--(Marketwire - March 13, 2008) - Canext Energy Ltd. ("Canext" or "the Company") (TSX VENTURE:CXZ) is pleased to announce it has discovered a new light oil pool in the Clear Prairie area of Northwest Alberta.

The discovery well (Canext 60% interest) was a 1,300 m Triassic test. The well flow tested 41 degree API light oil without stimulation for a three week period at an average daily rate of 125 bopd and 200 mscf/d (95 boepd net) with a 1% water cut. Field netbacks were in excess of $45/boe for January. The well has recently been equipped with a pumping unit.

Canext subsequently drilled a successful step-out well (60% interest) based on high resolution proprietary 2D seismic and geological mapping. The pay zone was encountered as predicted and a full diameter core was cut to gain additional geological information for reservoir modeling. Completion and tie-in operations are currently underway.

Canext has twelve (8.2 net) sections of prospective lands with options to increase its working interest. The Company is planning to shoot a 12 square mile 3D program to delineate the extent of the pool. Based on current mapping, which integrated several older wells that penetrated the pay zone, Canext management estimates a pool size of 20 - 40 million barrels of oil in place and 8 - 16 Bcf of natural gas. Although Clear Prairie is predominately a winter access area, Canext has begun to upgrade several roads and plans to drill 1-2 delineation wells this summer. The Company anticipates only minor production additions this year with the potential to drill several more wells and install a central oil treating facility next winter. Based on results of these wells, 3D seismic and available capital, the Company will plan for a development program spanning 3-4 years.

This light oil pool with development upside potential is complementary to the Company's Pouce Coupe Montney/Doig natural gas resource play. Canext has 11,460 net acres at Pouce Coupe with the potential to drill 43 net wells, assuming four vertical wells per section. The Company is currently evaluating a competitor's recently drilled horizontal wells offsetting Canext's land base. The ultimate development strategy for Pouce Coupe will be based on the evaluation of horizontal wells versus vertical wells and impacts from the Alberta new royalty framework.

Canext has engaged Canaccord Enermarket to assist in the sale of certain non core properties with production of approximately 500 boepd. The property packages include Retlaw, Niton, Birch, Hines Creek/Dixonville, and Saskatchewan ORR's. They will be available shortly with bids due mid April and closing(s) targeted for the end May. The proceeds from the sale of these properties will be used to accelerate the development opportunities at Pouce Coupe and Clear Prairie.

Canext is also pleased to announce it has placed an updated corporate presentation on its website. The Company is targeting release of its audited financial statements for the year ended December 31, 2007 on or about April 15, 2008.

Reader advisory:

The term "BOE" may be misleading, particularly if used in isolation. In accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1 bbl has been used which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Investors are cautioned that the preceding statement of the Company may include certain estimates, assumptions and other forward-looking information. The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements, which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including natural gas/oil prices, reserve estimates, drilling risks, future production of gas and oil, rates of inflation, changes in future costs and expenses related to the activities involving the exploration, development and production of gas and oil hedging, financing availability and other risks related to financial activities.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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