CE Canada Energy Partners Inc

Canada Energy Partners (TSX VENTURE:CE) (the "Company") is pleased to announce
that it has acquired all of the outstanding shares of Hudson's Hope Gas Ltd.
("HHG"), the wholly-owned subsidiary of GeoMet Inc. ("GeoMet"), which is the 50%
owner and Operator of the Company's Peace River Coalbed Methane (CBM) Project,
for a consideration of 2 million shares of the Company. The 2 million shares of
the Company issued to GeoMet are subject to a 12-month hold period.


The Company believes this is a strategic acquisition for the following reasons:
(1) The acquisition consolidates operations and 100% ownership of the CBM
Project into the Company. (2) The acquisition adds approximately 230 BCF of CBM
gas resource potential, bringing the CBM project total up to 500 BCF. This
resource potential can only be commercialized under higher gas prices. (3) The
acquisition secures 100% ownership of the Peace River gas plant, which is
strategic to both the CBM and Montney Shale developments. (4) It solidifies
ownership and control within the Company of the only water disposal wells within
a 35-mile radius, which are strategic to both CBM and Montney Shale
developments. 


As a result of the acquisition, the Company will effectively assume GeoMet's
share of the abandonment liabilities ("P&A") associated with the CBM Project.
Under a new Oil & Gas Commission ("OGC") policy, the Company, through HHG, will
have to post an $800,000 bond for the P&A in November 2012 and an additional
$800,000 in September 2013, UNLESS one or more of the following events occur:
(1) the Company achieves commercial activity deemed by the OGC to be equal to or
greater than $1.6 million, (2) the Company transfers operatorship to another
company whose commercial oil and gas activity in the Province exempts it from
the bonding obligation, or (3) the Company moves forward with the abandonment of
the CBM Project. The Company is already pursuing avenues which will enable it to
meet the bonding obligation or to eradicate the bonding obligation.


The Company believes that this acquisition was achieved at a very attractive
price due to the depressed gas market; and that the consolidation of interests
and operations of the CBM Project, the gas plant, and the disposal wells will be
strategic in the advancement of both the CBM and Montney plays when gas prices
recover.


Canada Energy is an oil and gas exploration and development company. The Company
possesses a large concentrated land position in a high-impact, multi-zone,
natural gas-bearing area in northeast British Columbia.


On behalf of the Board of Directors of Canada Energy Partners Inc.

John Proust, Chairman

Forward Looking Statements: This news release contains forward looking
statements relating to expected or anticipated flow rates, timing for drilling
and completion operations, future events and operations, number of wells to be
drilled, timing of projects and anticipated results that are forward looking in
nature and, as a result, are subject to certain risks and uncertainties, such as
general economic, market and business conditions, the regulatory process and
actions, technical issues, new legislation, competitive and general economic
factors and conditions, the uncertainties resulting from potential delays or
changes in plans, the occurrence of unexpected events, and the company's
capability to execute and implement future plans. Actual results achieved may
vary from the information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors. There is no representation by
the company that actual results achieved during the forecast period will be the
same in whole or in part as that forecast.

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