DEEP RIGHTS JOINT VENTURE ON MONIAS PROSPECT

Deep Rights Joint Venture on Monias Prospect

Scale: 1 mile square = 1 square

On April 1, 2008 the Company announced a joint venture with West Energy Ltd. (TSX:WTL) ("West") on the Company’s Monias Prospect.

The Agreement covers deep rights on nine (approximately 5,866 gross and net acres) of the ten sections on the Company’s Monias property.  Pursuant to the terms of the Agreement, West will conduct an exploration program, the primary purpose of which will be to test the potential of the deep formations including Montney/Doig Formation.

The exploration program is expected to consist of a three-dimensional seismic project over the majority of the Monias lands and the option to drill up to three exploratory wells. West will pay 100% of the costs through to completion to earn its 65% interest in the deep rights and will operate the project. Canada Energy will own the remaining 35% working interest. Three-dimensional seismic program and the drilling of the first Montney exploration well have been completed.  The Company will retain its 100% working interest in the rights to the base of the Nikanassin on the lands.