B.C. coalbed methane project to start

Published Saturday July 19th, 2008

FORT ST. JOHN, B.C. - Canada Energy Partners (TSXV:CE) is preparing to start commercial production of its coalbed methane project in B.C.'s Peace region, possibly resulting in the province's first natural gas from the unconventional source.

The company says it has started drilling five new wells and is in the process of connecting them and three existing wells to Spectra Energy Corp.'s (NYSE:SE) transcontinental pipeline.

"We expect to be selling gas by the end of the year," said Canada Energy Partners' CEO Benjamin Jones. "We are drilling right now as we speak."

Jones said the company has made a point of hiring local contractors to do the work and will be investing in the project over several years, with up to 315 potential well sites identified.

Canada Energy expects to find more than 2.3 trillion cubic feet of natural gas on the lease near Farrel Creek. The source of the natural gas is from underground coal seams, which trap methane gases under water pressure.

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