Canada Energy Retests Montney HZ Well

Canada Energy reported the re-test results for the Portage 3-12 well, the second horizontal Montney well drilled at Peace River. The original completion and test of the 3-12 occurred in December 2010 with an end-of-test rate of 1.2 million cubic feet per day. The well was re-tested in March 2011 for 48 hours yielding a peak rate of 10 million cubic feet per day ("mmcf/d"), an average rate over the test period of 4.8 mmcf/d and a stabilized end rate of 2.4 mmcf/d.

The Portage 3-12 was re-tested as follow-up to the successful re-test of the Portage c-20-E, as announced by the Company on December 13, 2010. These two re-tests appear to confirm the benefits of 'resting' a well for an extended period after initial completion, after which flow capacity improves.

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