Canada Energy Partners reports the significant increase in its reserves and contingent resources on the Peace River Coalbed Methane (CBM) project. The reserves and resources data presented below is based upon an independent reserve assessment and evaluation prepared as of February 28, 2009 by Netherland, Sewell & Associates, Inc. (NSA), an independent reservoir engineering firm.

Highlights of the Report:

• Total gas-in-place for the Project has increased to 1.466 Trillion Cubic Feet ("TCF") in the coal formations. NSA did not evaluate gas-in-place in the shale or deeper formations. This represents a 34.9% increase in gas-in-place over the 1.072 TCF reported in the July 2007 NSA report and is attributed to land acquisitions and larger quantities of coal encountered during recent drilling activities.

• Recoverable gas from the Project is estimated at 733.1 billion cubic feet ("BCF"); including proved, probable, possible and contingent resource. This is 36.7% higher than the 536.3 BCF estimate of ultimate recoverable gas in the July 2007 NSA report.

• The total estimated remaining recoverable gas reserves and remaining contingent gas resources net to the Company are 262.2 BCF, including 0.3 BCF proved developed producing reserves ("PDP"), 12.1 BCF probable reserves, 41.5 BCF possible reserves and 208.3 BCF contingent resources. The proved developed producing is nominal due to this being the first commercial CBM project in British Columbia and the producing wells being so early in the dewatering process.

• The estimated future net cash flow to the Company, net of development costs, operating costs, royalties, shrinkage and abandonment costs, but before income taxes, from reserves and contingent resources is $1.76 billion. The PV10% of reserves and contingent resources is $507.3 million.

Ben Jones, founder of the Peace River CBM Project and CEO of the Company, said, "We are pleased with the results of the Netherland Report and the progress of the Project. The comparison of the July 2007 Netherland Report with the 2009 Update herein clearly shows positive growth and graduation of our land position, reserves, and resources. The results of the 2008 drilling program were significantly better than any to date in the total net coal encountered, apparent permeability, and completion effectiveness. The Project continues to have a positive economic impact on the local community. The recent significant investment by Shell Oil into a CBM project immediately north of our acreage further validates the merit and potential size of our Project."

Tags: Canada Energy Partners Inc.