XPL Canadian Energy Exploration Inc.

CALGARY, Dec. 12, 2011 /CNW/ - Canadian Energy Exploration Inc. ("Canadian Energy", or the "Company") is pleased to announce it has received certain lease term extensions from the Petroleum Tenure Branch for the Saskatchewan Ministry of Energy and Resources based on well licence approvals, wildlife and critical vegetation issues, and wet weather conditions that will provide the Company with greater flexibility in allocating capital. A summary chart of the Company's lease expiry dates in the Hardy area is provided below. ________________________________________ |Canadian Energy Lands in the Hardy Area:| |________________________________________| Sections Original Expiry New Expiry 30.25 December 31, 2011 March 31, 2012 12.0 March 31, 2011 March 31, 2012 (extended by drilling) 6.0 March 31, 2016 No Change; Crown sale lands owned 100% 7.5 March 31, 2012 Option Lands - No Change .25 March 31, 2012 No Change - Earned Lands 2.75 Undetermined* *Freehold Lands; 1-year expiry once earned Total = 58.75 sections owned, earned or under option. The Farmor under the previously announced (see October 21, 2010 press release) Farmin has agreed to match the government extensions referred to above which will allow the Company to retain the option to earn the remainder of the farmout lands (21.5 sections) under the previously agreed upon terms.  Should the Company elect to drill 2 more earning wells on unearned farmout lands, the remainder of the farmout lands (21.5 sections) can be earned by the Company. All lands will expire as per the listed expiry dates except any terms that are extended by future drilling or production, if any. ______________________________________________________________ |Hardy Area Update - Third Party Announces Bakken Production on| |Offsetting Lands | |______________________________________________________________| Recent oil production obtained by other operators from four wells offsetting the Company's land position in the Hardy area has resulted in the Company applying for a horizontal Bakken-depth well at CEEI Hardy HZ 4B12-4-4B5-33-4-21W2. The Company intends to seek a joint venture participant to drill its newly applied for horizontal Bakken well at Hardy. The Company has also updated its corporate presentation which can be viewed on its website at www.cdnenergy.com. Forward Looking Statements: This press release contains certain statements which constitute forward-looking statements or information ("forward-looking statements"), including statements regarding Canadian Energy's business, such as greater flexibility in allocating capital, elections to drill wells, applications for drilling new wells, further land extensions related to the drilling of wells, seeking joint ventures, which by their nature are forward-looking statements and which are subject to numerous risks and uncertainties, some of which are beyond Canadian Energy's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources.  Although Canadian Energy believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate.  Those factors and assumptions are based upon currently available information.  Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information.  As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Canadian Energy does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.  The forward-looking statements contained in this document are expressly qualified by this cautionary statement. About Canadian Energy Exploration Inc. Canadian Energy Exploration Inc. is a junior oil and gas company engaged in the exploration for and development and production of natural gas and oil reserves. Canadian Energy has 135,497,209 common shares outstanding and an aggregate of 16,292,937 unexercised warrants. The Company's common shares are listed to trade on the TSX Venture Exchange under the symbol "XPL". Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Canadian Energy Exploration Inc. CONTACT: Canadian Energy Exploration Inc.Larry Buzan, President and Chief Executive OfficerP: (403) 229-2800Email: info@cdnenergy.comWeb Site: http://www.cdnenergy.com

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