CE Canada Energy Partners Inc

Canada Energy Partners Inc. ("Canada Energy" or the "Company") (TSX VENTURE: CE) is pleased to announce that drilling operations have started on the Portage 3-12-82-26, the second horizontal Montney well located on its Peace River Project in northeast British Columbia, approximately 2 miles east of the c-20-e well location.

The 3-12 well is planned for a minimum of 1400 meters horizontal displacement in the Montney Formation. This well will also evaluate the Doig siltstone and the Doig phosphate. The Company expects to have results in the fourth quarter of 2010.

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.

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.

The TSX Venture Exchange has neither approved or disapproved of the contents of this press release. 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 press release.

Contacts: Canada Energy Partners Inc. John Proust Chairman (604) 696-9020 Canada Energy Partners Inc. Ben Jones President and CEO (225) 388-9900 info@canadaenergypartners.com www.canadaenergypartners.com Canada Energy Partners Inc. 1500 - 885 West Georgia St. Vancouver, BC V6C 3E8 Main Phone: (604) 909-1154 Facsimile: (604) 488-0319