CALGARY,
July 7, 2011 /PRNewswire/ - Canadian
Energy Exploration Inc. ("Canadian Energy" or the
"Company") (TSX Venture - "XPL") is pleased to
announce it has spud a test well CEEI Ceylon 02-18-05-20W2M (the
"Well") on lands earned in accordance with a previously announced
(October 21, 2010) Seismic Review and
Option Agreement dated September 28,
2010 (the "Farmin Agreement") in the Hardy/Minton area of Southeast Saskatchewan.
Pursuant to the terms of the Farmin Agreement,
this well is considered an after-earned well and under the
Saskatchewan government
regulations this is considered a development well due to its
proximity to unabandoned wells. This is the first accessible
location to the Company on its Hardy lands since early March, 2011
due to saturated soil conditions prevalent throughout S.E.
Saskatchewan.
The Well is licenced to a total depth sufficient
to drill to 2415 meters however the Company may reduce the drill
depth to 1840 metres, sufficient to evaluate the Mississippian
formations including the Ratcliffe formation. The estimated cost
associated with drilling and casing, completing or abandoning the
Well is $750,000.00.
Pursuant to the terms of the Farmin Agreement,
if the Company drills three exploratory test wells (completed) plus
an additional two option wells, all by August 31, 2011, the Company will earn 100%
working interest in the remaining approximately 13,760 acres
(21.50) sections. As previously announced (May 26, 2011) the Company controls approximately
34,880 acres (54.50 sections) of which 11 leases comprising 20,000
acres (31.25 sections) expire August 31,
2011 unless a well is drilled to retain each lease. The
above mentioned Well will preserve all mineral rights contained in
the 2,400 acre (3.75 section) lease to March
31, 2012 but is not considered an option well under the
Farmin Agreement.
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 oil and natural gas reserves in Western Canada.
The Company's common shares 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.
Advisory
Certain statements and information contained in
this press release, including but not limited to statements
regarding the use of proceeds contain forward-looking
statements. All statements other than statements of
historical fact may be forward looking statements. These
statements, by their nature, are subject to numerous risks and
uncertainties, some of which are beyond Canadian Energy's control
including the effect of general economic conditions, industry
conditions, changes in regulatory and taxation regimes, volatility
of commodity prices, escalation of operating and capital costs,
currency fluctuations, the availability of services, imprecision of
reserve estimates, geological, technical, drilling and processing
problems, environmental risks, weather, the lack of availability of
qualified personnel or management, stock market volatility, the
ability to access sufficient capital from internal and external
sources and competition from other industry participants for, among
other things, capital, services, acquisitions of reserves,
undeveloped lands and skilled personnel that may cause actual
results or events to differ materially from those anticipated in
the forward looking statements. Such forward-looking
statements, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated in the statements made
and should not unduly be relied on. These statements speak
only as of the date of this press release. Canadian Energy
does not intend and does not assume any obligation to update these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
law. Canadian Energy's business is subject to various risks
that are discussed in its filings on the System for Electronic
Document Analysis and Retrieval (SEDAR).
SOURCE Canadian Energy Exploration Inc.