The Montney formation will be tested via a multi-stage fracture stimulation with subsequent production testing. This process is expected to take three weeks.

In addition, the JV partner of the project plans to start the drilling of a second horizontal Montney well prior to July 15. The location has been selected and a drilling application submitted. This well is expected to be completed and tested in early Q4 2010.

Canada Energy is carried by its JV partner through the completion of the c-20-E and the next $11m of joint exploration expenditures. The company will have a 50% working interest in the deep rights at Peace River upon the JV partner completion of its earn-in obligations.

Canada Energy owns a 50% interest in the Peace River gas plant and connection to the Spectra Energy sales pipeline, which will be available to bring this Montney gas to market.