August 5, 2008 – Canext completes minor acquisition and updates Montney drilling program
Calgary, Alberta - Canext Energy Ltd. ("Canext" or the "Company") (TSXV – CXZ) is pleased to announce it has purchased the working interests of two partners at Pouce Coupe for $1,100,000. The acquired properties include 15 boepd net production and 0.55 net sections of Montney rights. As a result of the purchase, the Company has increased its interest from 50% to 77.5% on a horizontal well it is currently drilling on the acquired acreage. The well will be completed with multiple fracs into the Upper Montney. Additional prospects have been identified on the acquired lands and 3D seismic is being shot to further evaluate these opportunities.
Canext has successfully drilled and cased a Montney vertical step out well (50% WI) at Pouce Coupe. The well encountered approximately 30 m of 8% porosity in the Upper and Lower Montney. Completion and testing operations are currently underway.
Canext also participated (24% WI) in a non-operated Montney recompletion. The well successfully tested gas 3 miles from the closest previously known producer. The well is expected to be tied in shortly as a low rate vertical producer. Additional zones in the well may be recompleted later in the year. Canext is planning a 100% WI offset well targeting the Upper and Lower Montney. The well is expected to spud late August and will be deepened to include an evaluation of the Kiskatinaw which produces in offset wells. Drilling operations have also commenced on a non operated (25% WI) Lower Montney horizontal re-entry at Pouce Coupe.
The Company has completed upgrading the surface lease and access road to its Sweeney oil discovery. A drilling rig has been contracted to drill two (1.2 net) wells and operations should commence this week. The wells are being drilled as quarter section step outs to the discovery well. Additional drilling at Sweeney and Clear Prairie is planned for the fourth quarter.
Canext expects to release its second quarter financial statements and a further update on activities on or about August 25th.