CANADIAN ENERGY EXPLORATION INC. - YEAR END HIGHLIGHTS AND 2010 UPDATE

CALGARY, April 27 /CNW/ - Canadian Energy Exploration Inc. ("Canadian Energy" or the "Company") (TSX Venture - "XPL") announces financial and operating results for the year ended December 31, 2010 and an update of current activities. The Company's audited consolidated financial statements together with the auditor's report thereto; and Management's discussion and analysis of financial condition and results of operations for the year ended December 31, 2010 can be obtained on System for Electronic Document Analysis and Retrieval (SEDAR)at www.sedar.com

Year End Highlights:

  • On April 26, 2010 Canadian Energy filed its Annual Information Form for the year ended December 31, 2010 which contains Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information for its year ended December 31, 2010, Form 51-101F2 - Report of Independent Qualified Reserves Evaluator and Form 51-101F3 - Report of Management and Directors, all under National Instrument 51-101.  These filings can be accessed electronically on the SEDAR website: www.sedar.com;

  • Average gas production during 2010 was 100 Mcf per day  - a 62% decrease from  the year ended 2009 as a result of the production volume reduction and water cuts increasing in the Last Quarter of 2010; average NGL production from 2010 was 2 Boe per day - a 50% decrease from the year ended 2009 - a result of production volume reduction; and average oil production from 2010 was 2 Boe per day - a 100% increase from the year ended 2009 - a result of production volumes coming on-stream in Q1 2010;

  • Petroleum and natural gas sales revenue fell $57, 419 - a 20.4% decrease from the year ended 2009 - due to production declines from existing wells.

Highlights of Canadian Energy's 2010 activities and summary of operations for the year to-date include:

  • Current production is averaging approximately 19 Boe per day;

  • The Company has fulfilled its commitment under a previously announced farmin agreement by drilling three exploratory earning wells at its Hardy/ Minton Saskatchewan land block, earning 27 sections (6,993 hectares/ 17,483 acres). The Company is currently waiting on post breakup access to further evaluate these wells;

  • The Company acquired 1.5 sections (385.50 hectares/ 964 acres) at Alberta and Saskatchewan crown land sales in 2010 and acquired another 6 sections (1,554 hectares/ 3,885 acres) at the February 2011 Saskatchewan crown land sale in the Hardy/Minton area;

  • Management is currently working on certain strategic alternatives including, but not limited to: recapitalizing the Company through financing arrangements or merging with other companies, and/or procuring joint venture partner(s) to assist in the drilling, completions and operations in the Hardy/ Minton area of Saskatchewan.  There is no assurance, however, that any of these alternatives will materialize or that additional funding will be available, if and when needed.

Canadian Energy is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in Western Canada. Canadian Energy has 71,601,731 common shares issued and outstanding.

In this News Release the calculation of barrels of oil equivalent (Boe) is calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas for one barrel (bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A Boe conversion ratio of 6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Canadian Energy's business, such as further planned completion operations, the review of strategic alternatives and establishing a portfolio base, which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Canadian Energy's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources.  Although Canadian Energy believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate.  Those factors and assumptions are based upon currently available information.  Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information.  As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements.  The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com.  Furthermore, the forward-looking statements contained in this release are made as of the date of this release and, except as required by applicable law, Canadian Energy does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.  The forward-looking statements contained in this release are expressly qualified by this cautionary statement.

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 natural gas and oil reserves. The Company's common shares are listed to trade on the TSX Venture Exchange under the symbol "XPL".

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.


SOURCE Canadian Energy Exploration Inc.

For further information:

Canadian Energy Exploration Inc.  
Larry Buzan, President and Chief Executive Officer, Director 
(403) 229-2800 
Email: Buzan@cdnenergy.com

Profil de l'entreprise

Canadian Energy Exploration Inc.

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