July 7, 2011
/PRNewswire/ - Canadian Energy Exploration Inc. ("
" or the "
") (TSX Venture - "
") 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/
Pursuant to the terms of the Farmin Agreement, this well is considered an after-earned well and under the
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.
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
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".