CXZ Canext Energy Ltd

Canext Energy Ltd. ("Canext" or the "Company") (TSX VENTURE:CXZ) is pleased to
announce its operating and financial results for the three and six months ended
June 30, 2008.


Highlights:

- Cash flow increased to $3,479,000 up 49% from the first quarter of 2008,

- Closed an equity financing for net proceeds of $9,792,000,

- Sold non core properties for net proceeds of $6,024,000,

- Ended the quarter with no bank debt and $6,793,000 of positive working capital,

- Operating costs per boe declined 21% from the first quarter of 2008,

- Operating netback increased 46% from the first quarter of 2008,

- 2008 capital program expanded to $24,000,000.

The following table summarizes some of the key financial results. Complete
financial statements with accompanying notes along with management's discussion
and analysis have been filed on SEDAR ( www.sedar.com ).




                                           Three Months          Six Months
                                             Ended June          Ended June
                                         2008      2007      2008      2007
----------------------------------------------------------------------------

Production (boe/d)                      1,076       427     1,086       380

Highlights ($000's)
Revenue                                 6,524     1,804    11,909     3,246
Cash flow (1)                           3,479       601     5,821     1,248
Net income/(loss)                         376      (556)     (408)     (805)
Capital spending                        1,582       544     4,538     5,475
Acquisitions/(Dispositions)            (6,024)   51,703    (6,024)   51,703

Per Common Share
Cash flow (1)                            0.05      0.02      0.08      0.04
Net Earnings / (Loss)                    0.00     (0.02)    (0.01)    (0.02)

Balance Sheet at period end (000's)
Property, plant and equipment                              52,713    71,879
Working Capital
Surplus/(Deficit)                                           6,793    (6,494)
Shareholders' equity                                       58,021    61,122

Wt average shares 000's                77,036    33,236    76,665    30,826

Revenue $/boe                           66.65     46.47     60.26     47.25
Royalty $/boe                          (13.16)   (10.72)   (12.05)   (11.25)
Opcost $/boe                           (10.82)   (10.57)   (12.29)    (9.91)
Transportation $/boe                    (0.43)    (0.05)    (0.41)    (0.05)
Operating Netback $/boe                 42.24     25.13     35.51     26.04
G&A                                     (5.63)    (8.87)    (4.91)    (8.23)

(1) Cash flow and cash flow netbacks as presented do not have any 
    standardized meaning prescribed by Canadian GAAP and therefore they may
    not be comparable with the calculation of similar measures for other 
    entities.



Second Quarter Summary

Canext strengthened its balance sheet in the second quarter by closing a bought
deal financing of 7,500,000 common shares at $0.80/share and 4,210,600
flow-through common shares at a price of $0.95 per share. In addition, officers,
directors, employees, and immediate family members participated in a concurrent
non brokered financing of 125,000 common shares at $0.80/share and 422,000
flow-through common shares at a price of $0.95 per share.


To further strengthen its balance sheet and refocus on core opportunities, the
Company sold approximately 200 boepd of non core production for net proceeds of
$6,024,000. The combined effect of the financings and dispositions eliminated
all bank debt and resulted in a working capital surplus of $6,793,000 at the end
of the period.


Canext had limited activity in the second quarter as a result of normal spring
break. The Company drilled three (2.5 net) wells at Birch resulting in 2 (1.9
net) gas wells and one (0.6 net) dry hole. Completion operations commenced at
Pouce Coupe in June. The first recompletion at Pouce Coupe (65% working
interest) resulted in a gas well testing at rates up to 3,000 mscf/d. The well
was placed on production at 2,000 mscf/d in June (net 215 boepd).  This well is
expected to replace most of the production sold in June.


Operational Update

Subsequent to the quarter Canext has drilled and cased its first horizontal
Montney well (77.5 % working interest). The well showed high gas counts while
drilling approximately 1,300 m of horizontal section. Completion operations will
include six large frac treatments and are expected to commence shortly.
Production is anticipated for late September.


A second non-operated Montney horizontal well (25 % working interest) is
currently being drilled and should reach total depth within a few days. The
horizontal well was successfully drilled after cutting a window in an existing
vertical well and drilling out approximately 1,000 m. Completion operations are
expected to commence in September.


The Company has proved up additional Montney and Doig acreage at Pouce Coupe
with the testing of gas from a new vertical well and a recompletion of an
existing well. Based on these results Canext has commenced drilling operations
on an offset vertical well (100 % working interest). The well will be drilled to
evaluate potential gas in the Kiskatinaw, Lower Montney, Upper Montney and Doig
formations. The Company expects to drill its third horizontal in September.


At Sweeney the Company has drilled and cased a 60 % working interest step-out
well. The well encountered a thicker reservoir than the oil discovery well
drilled late last year. Canext has started to drill another step-out well.
Completion operations will commence following the drilling of the second well
with production anticipated for October. The Company is still planning
additional step-out drilling at Sweeney in the fourth quarter of this year and
the first quarter of next year.


Outlook

Production for the third quarter is expected to be similar to the second
quarter. The disposition of 209 boepd effective June 30 representing
approximately 20 % of the Company's production will be replaced by new
production from a recompletion at Pouce Coupe and new wells at Birch. The
Company remains on track to exit the year at 1,400 - 1,500 boepd.


Activity continues to accelerate at Pouce Coupe on the Montney trend. A recent
sale of Montney rights netted $1,750,000 per section. Canext has an interest in
11 net sections of Montney rights at Pouce Coupe. A senior producer has licensed
three horizontals in one section offsetting Canext acreage. Canext expects to
evaluate the majority of its acreage this year with recompletions and vertical
step out wells. Ultimately the acreage is expected to be developed with two to
four long length horizontals per section.


Canext capital spending for the second half of the year will be $20,000,000
representing about 80% of the budget. Approximately $10,000,000 will be spent at
Pouce Coupe focusing on Montney/Doig development and step-out drilling.


The Company is well positioned for future growth balanced between oil at Sweeney
and natural gas on the Montney-Doig resource play at Pouce Coupe. In addition,
the large undeveloped land base along with the strong inventory of exploration
prospects provides a framework for continued growth.


Reader advisory:

The term "BOE" may be misleading, particularly if used in isolation. In
accordance with NI 51-101, a BOE conversion ratio for natural gas of 6 mscf: 1
bbl has been used which is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


Investors are cautioned that the preceding statement of the Company may include
certain estimates, assumptions and other forward-looking information. The actual
future performance, developments and/or results of the Company may differ
materially from any or all of the forward-looking statements, which include
current expectations, estimates and projections, in all or part attributable to
general economic conditions and other risks, uncertainties and circumstances
partly or totally outside the control of the Company, including natural gas/oil
prices, reserve estimates, drilling risks, future production of gas and oil,
rates of inflation, changes in future costs and expenses related to the
activities involving the exploration, development and production of gas and oil
hedging, financing availability and other risks related to financial activities.

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