Canada Energy Partners Inc. announced the decision to terminate negotiations with T5 Limited and Stream Oil SAS regarding the Owali concession transaction in Gabon. CEP was unable to complete the necessary due diligence and conclude negotiations with acceptable terms for the potential transaction during the agreed exclusivity period. In parallel, Canada Energy has examined the potential for natural gas projects in North America.

The market for natural gas, particularly in Texas, is very robust and is expected to stay strong for the foreseeable future. The Company has identified several assets to participate with existing producers in the region and is currently negotiating partnership terms on natural gas development opportunities in South Texas. Canada Energy Partners is in the due diligence phase and is evaluating several opportunities available in this region that can be acquired in a very short period.