CE Canada Energy Partners Inc

Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE:CE)
is pleased to announce, the successful results of the horizontal Montney test
located on its Peace River Project in northeast British Columbia.


Highlights



--  The Portage c-20-E was completed with four fracture stimulations over a
    1000 meter horizontal section and tested at 1.7 to 2.7 million cubic
    feet per day with 579-1450 psi flowing casing pressure over an eleven
    day test;
--  The c-20-E results of 420 mcf/d per frac treatment compares very
    favourably with the Talisman completions on their Farrell Project 5
    miles to the north where the fracture treatments from the Upper Montney
    have averaged 540 mcf/d per fracture treatment;
--  Sproule Associates Limited have estimated 171 BCF per section total-gas-
    initially-in-place ("TGIIP") in the Upper Montney and Doig formations
    combined in the c-20-E well and 207 BCF per section in the Company's
    Portage 9-23-81-26 well;
--  The Company's Joint Venture Partner on the Peace River Project has
    licenced the next horizontal well and the spud date is expected by mid-
    July;
--  The Company has expanded its deep rights land base by 14 gross and 7 net
    sections via recent land sales. This increased the Company's deep rights
    land base by 20%.



Operations Review

The Portage c-20-E well on the Peace River Project was drilled and completed in
the Upper Montney formation. The well tested at variable rates of 1.7 - 2.7
million cubic feet per day, with 579-1450 psi flowing casing pressure, over an
11 day period from a 4-stage, non-energized (without nitrogen or carbon dioxide)
frac in a 1000 metre horizontal section. The well had not fully cleaned up nor
was critical flow (the minimum gas velocity required to efficiently lift water
from the well) up the 114.5 millimeter casing achieved prior to the end of the
test. Both the Doig and Montney formations exhibited elevated formation
pressures characteristic of most shale gas plays.


The Joint Venture Partner and the Company believe that the test results of the
c-20-E compare very favorably to the Talisman Farrell Project wells on a
per-frac basis. When projected onto a typical development well of 1400-2400
metre lateral length and a 10-18 stage frac treatment, the Company believes the
c-20-E has the reservoir characteristics to yield similar results. The average
fracture treatment of a Montney horizontal well in northeast British Columbia is
14 stages (Oilweek, March 2010).


In addition to the Upper Montney, the Doig formation has logs and cores
indicating pay with significant, open-hole, drilling gas flows (see photo 1
below).


The Doig Phosphate is thickest in the Peace River Project area and Talisman has
demonstrated its productivity at Farrell. There are four (4) wells in the Peace
River/Farrell area that have yielded positive gas tests from the Doig Phosphate.


The Lower Montney also yielded significant gas flows (see photo 2 below) while
drilling and exhibits resource potential.


The Company engaged Sproule Associates Limited ("Sproule") to estimate the
total-gas-initially-in-place ("TGIIP") in both the c-20-E and the previously
drilled Portage 9-23-81-26W6 wells. Sproule has estimated the c-20-E and the
9-23 wells to contain a gross TGIIP of 171 and 207 BCF per section respectively
from the Doig Siltstone, Doig Phosphate, and Montney zones combined. The Company
would have a 50% interest, assuming the Joint Venture Partner completes their
earn-in. In accordance with NI 51-101 guidelines, Sproule has classified these
resources as follows:




                 c-20-E  9-23-81-26                                       
                 ------  ----------                                       
- Doig Siltstone     63          59   BCF/section undiscovered resources; 
- Doig Phosphate     75         110   BCF/section discovered unrecoverable
                                       resources;
- Upper Montney      33          38   BCF/section discovered recoverable
                                       resources;  
                 ------  ----------                                       
- Total TGIIP       171         207   BCF/section                         



See definitions and cautionary statements below.

Sproule has not yet been asked to estimate the recoverable portion of these
in-place resources, and the Company will continue working with Sproule toward an
estimate of recoverable volumes of gas as the more data is acquired.


The Joint Venture Partner has committed to drilling a minimum of 1400 metre
horizontal lateral in the next well (Portage 3-12-82-26), which is anticipated
to be spud by July 15th, with completion expected in early Q4, 2010.


The results of the c-20-E testing were the primary driver in the Company's
acquisition of additional acreage on the Peace River Project (see the Company's
prior announcement dated June 25th 2010). The Company was successful in
acquiring 14 gross and 7 net sections in the May and June lease sales which
increased the Company's net deep rights land base by 20%.


The Company expects the Joint Venture Partner will await the results of the 3-12
well before initiating a pipeline connection.


The Company has 42 net sections of Montney rights in northeast British Columbia,
representing 168 potential net Montney drilling locations.


Canada Energy is an active oil and gas exploration and development company with
approximately $4.2 million of working capital. The Company possesses a large
concentrated land position in a high-impact, multi-zone, natural gas-bearing
area in northeast British Columbia.


Definitions & Cautionary Statements

Total Petroleum Initially-In-Place (PIIP) is that quantity of petroleum that is
estimated to exist originally in naturally occurring accumulations. It includes
that quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations, prior to production, plus those estimated
quantities in accumulations yet to be discovered (equivalent to "total
resources").


Discovered Petroleum Initially-In-Place (equivalent to discovered resources) is
that quantity of petroleum that is estimated, as of a given date, to be
contained in known accumulations prior to production. A recovery project cannot
be defined for this volume of discovered petroleum initially-in-place at this
time. There is no certainty that it will be commercially viable to produce any
portion of the resources.


Undiscovered Petroleum Initially-In-Place (equivalent to undiscovered resources)
is that quantity of petroleum that is estimated, on a given date, to be
contained in accumulations yet to be discovered. There is no certainty that nay
portion of the resources will be discovered. A recovery project cannot be
defined for this volume of discovered petroleum initially-in-place at this time.
There is no certainty that it will be commercially viable to produce any portion
of the resources.


Unrecoverable is that portion of Discovered or Undiscovered PIIP quantities
which is estimated, as of a given date, not to be recoverable by future
development projects. A portion of these quantities may become recoverable in
the future as commercial circumstances change or technological developments
occur; the remaining portion may never be recovered due to the physical/chemical
constraints represented by subsurface interaction of fluids and reservoir rocks.


Conference Call

Canada Energy Partners will host a conference call and webcast to discuss its
horizontal Montney test results


Tuesday, July 06 at 1:30 pm PDT (3:30 pm CDT / 4:30 pm EDT)

Toll-free 1-888-789-9572 (participant code 5084645) or webcast at
www.canadaenergypartners.com


Mr. John Proust, Chairman and Mr. Benjamin Jones, President & CEO will host the
call. Access to the call may be obtained by calling the toll-free number above
or by accessing the webcast up to fifteen minutes prior to the scheduled start
time. For those who are unable to participate, a digital playback of the
conference call will be available through to July 20, 2010 by dialing
1-800-408-3053 (local access 416-695-5800) (passcode: 8484351).


On behalf of the Board of Directors of Canada Energy Partners Inc.

John Proust, Chairman

Forward Looking Statements: This news release contains forward looking
statements relating to expected or anticipated flow rates, timing for drilling
and completion operations, future events and operations, number of wells to be
drilled, timing of projects and anticipated results that are forward looking in
nature and, as a result, are subject to certain risks and uncertainties, such as
general economic, market and business conditions, the regulatory process and
actions, technical issues, new legislation, competitive and general economic
factors and conditions, the uncertainties resulting from potential delays or
changes in plans, the occurrence of unexpected events, and the company's
capability to execute and implement future plans. Actual results achieved may
vary from the information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors. There is no representation by
the company that actual results achieved during the forecast period will be the
same in whole or in part as that forecast.


To view Photo 1 - Doig Drilling Gas Flow, please click on the following link:
http://media3.marketwire.com/docs/Doig.JPG


To view Photo 2 - Lower Montney Drilling Gas Flow, please click on the following
link: http://media3.marketwire.com/docs/Montney.JPG

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