CXZ Canext Energy Ltd

Canext Energy Ltd. ("Canext" or the "Company") (TSX VENTURE:CXZ) is pleased to
announce it has successfully drilled and completed its first horizontal well
(60% WI) at Sweeney. The Company drilled a vertical stratigraphic test in a new
quarter section to extend the pool boundary. The well logs indicated six to
seven meters of oil pay with porosities greater than 20%. The well was plugged
back and re-drilled as a short horizontal with 210 m of open hole all of which
is estimated to be in the pay zone. During completion operations the Company
swab tested and flowed oil over three days at rates of 15 - 25 bbls of oil per
hour with less than 1% water cut. The well was tested at a relatively low
drawdown suggesting higher inflow rates are possible.


The Company also drilled a vertical infill well (60% WI) at Sweeney which
encountered approximately eight meters of net pay with porosity greater than
20%. The well has been completed and swab tested at rates up to 10 bbls per hour
of oil over a three day period with water cut of 1%. Both wells were completed
without stimulation. Pressure recorders have been run to confirm inflow
characteristics and determine if there is any near wellbore damage. The Company
may proceed with stimulations to further enhance production based on the
pressure transient results.


The wells are expected to be on production in October at a combined rate of 160
- 200 bbls/d (100 - 120 bbls/d net). Based on regulatory approval and gas
conservation, production is expected to be increased to 400 bbls/d (240 bbls/d
net) by the end of December or early January. The results from the new wells are
similar to the offset well which has produced 50,000 bbls of oil in the first 11
months of production and is currently producing 260 bbls/d (155 bbls/d net).
Both new wells qualify for the Alberta Drilling Credit and the Alberta Royalty
Incentive. Based on a current oil price of $70 US WTI, the Company anticipates
cash flow net of royalties, operating and transportation costs to be $45 -
50/bbl. Canext has placed an updated presentation on its website.


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.
The Company's forward looking statements are expressly qualified in their
entirety by this cautionary statement. Except as required by law, the Company
undertakes no obligation to publicly update or revise any forward-looking
statements.

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