XPL Canadian Energy Exploration Inc.

CALGARY, Aug. 29, 2011 /CNW/ -- Not for distribution to United States newswire services or for dissemination in the United States. CALGARY, Aug. 29, 2011 /CNW/ - Canadian Energy Exploration Inc. ("Canadian Energy" or the "Company") (TSXV: XPL) announces financial and operating results for the second quarter ended June 30, 2011 and an update of current activities. The unaudited consolidated financial statements as at and for the second quarter ended June 30, 2011, together with the notes thereto; and management's discussion and analysis of financial condition and results of operations as at and for the second quarter ended June 30, 2011 can be accessed electronically on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. Second Quarter Highlights -- Average gas production during the second quarter 2011 was 41 Mcf per day - a 50% decrease from second quarter 2010 as a result of production volume reductions due to shutting in one well and evidence of increasing water volumes in two others in Provost and Berry Creek Alberta. Average oil and LPG production during second quarter 2011 was 2 Boe per day - a 33% decrease from second quarter 2010. -- Petroleum and natural gas sales revenue was $28,793 - a 51.1% decrease from the second quarter 2010. Operational Update -- Extremely wet conditions prevalent throughout the Hardy area of SE Saskatchewan precipitated a Saskatchewan Energy and Mines decision to continue all crown lands previously granted an extension to end of June 2011 with another extension from the previously announced August 31, 2011 expiry date to December 31, 2011. The Farmor under the Seismic Review and Option Agreement (the "Farmout") dated September 28, 2010 agreed to match this continuation and extend the option and elections to drill and earn for the Company under the Farmout. -- As previously announced (May 20, 2011, June 15, 2011 and July 4, 2011) we closed an equity financing for aggregate gross proceeds of $6,127,795.30. -- As previously announced (July 22, 2011) we appointed a new director, John C. McGilvary. -- As previously announced on July 20, 2011 we have drilled and cased a fourth well in the Hardy area in SE Saskatchewan and we have been actively evaluating all four Company wells. The current status of each of the Company wells in Hardy is as follows: o 5-27-4-21W2: completed in the Bakken formation; pumping. o 5-17-5-21W2: completed in the Bakken formation; pumping. o 16-1-5-21W2: completed in the Ratcliffe formation; suspended; logged for further evaluation. o 2-18-5-20W2: cased; not completed; logged for further evaluation. -- We bid at the August 10, 2011 Alberta Crown sale on one parcel unsuccessfully however the successful bid on these lands directly adjoining our lands sold for over $5,000 per hectare, substantially over what we paid earlier for our lands. These Central Alberta lands are part of a non-core activity following up on internally generated geological concepts. The Company is also actively negotiating to acquire further mineral lands through farmin with major land owners in Central Alberta. About Canadian Energy Exploration Inc. Canadian Energy Exploration Inc. is a junior oil and gas company engaged in the exploration for and development and production of oil and natural gas reserves in Western Canada.  The Company's common shares trade on the TSX Venture Exchange under the symbol "XPL". Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. In this Press Release the calculation of barrels of oil equivalent (Boe) is calculated at a conversion rate of six thousand cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based on an energy equivalency conversion method. Boes may be misleading particularly if used in isolation. A Boe conversion ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead. Forward-looking statements: This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Canadian Energy expects to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although Canadian Energy believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward looking statements are based on the beliefs, estimates and opinions of Canadian Energy's management on the date the statements are made. Canadian Energy undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/29/c7089.html p bCanadian Energy Exploration Inc.  /bbr/ bLarry Buzan, President and/b br/ bChief Executive Officer/b /p p P: (403) 229-2800br/ E-mail: a href="mailto:buzan@cdnenergy.com"buzan@cdnenergy.com/a /p

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