Canada Energy Partners Inc. provides an update on its Shallow Rights exploration programs in northeast British Columbia. The exploration programs included the Moosebar Shale horizontal well on the Peace River Project previously announced on February 2nd, 2009 and the CBM horizontal well on the farm-in lands adjacent to its Monias Prospect previously announced on November 4, 2008.
The Company drilled its Portage a-C100-D/94-B-1 well on the Peace River Project as a horizontal exploration well in the Moosebar Shale. The well reached the targeted 1,000 metres of horizontal displacement. The well is currently shut-in pending a future fracture stimulation test.
Canada Energy drilled the A9-23-81-22 CBM well on the farm-in lands adjacent to its Monias Prospect as a horizontal exploration well in the Gething formation. Drilling problems were encountered during the drilling of this well which prevented reaching the targeted horizontal lengths. Nevertheless, the well was completed and production tested from February to mid-May 2009 and further evaluated. The test rates have been deemed uneconomic in the current natural gas pricing environment. The well has been shut-in for possible future utility pending increased gas prices. The well is cased and can be utilized for additional horizontal drilling in the coals in the future. Under the Farm-in Agreement, previously announced on September 18, 2007, the Company has earned a 70% interest in the Shallow Rights in two sections of the farm-in lands and has relinquished its farm-in rights to 6 sections because of the near term drilling requirements and the current gas prices.
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