Canadian Energy Reaches TD at Hardy Well

Canadian Energy has finished drilling the well at CEEI Ceylon 2-18-5-20W2 to a total depth of approximately 1838 meters, and both cored and cased the Well. Further evaluations on the Well are planned. The 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 farm-in agreement announced on October 21, 2010.

CEEI has also completed two evaluation operations in the Bakken formation by fracturing both Company wells at 5-27-4-21W2 and 5-17-5-21W2M, following which a service rig has been engaged to move onto both wells this week for further evaluations

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