Culane Energy Releases 2010 Reserves

Culane Energy Corp. (TSX VENTURE:CLN) ("Culane" or the "Company") announces
results of its independent reserves evaluation as at December 31, 2010. The
Statement of Reserves has been filed with Canadian securities regulatory
authorities on SEDAR at www.sedar.com and posted on the Company's website at
www.culaneenergycorp.com


Reserves

All of the reserves of the Corporation were evaluated by McDaniel & Associates
Consultants Ltd. ("McDaniel") as at December 31, 2010 and have been prepared in
accordance with National Instrument ("NI") 51-101. The reserves evaluation has
been approved by the Board of Directors of Culane.


Company share of remaining reserves - forecast prices and costs



----------------------------------------------------------------------------
Reserves                                                                    
 category        Medium Oil (Mbbl)    Heavy Oil (Mbbl)    Sales Gas (MMcf)  
                 -----------------------------------------------------------
                 Company             Company             Company            
                   Share      Net      Share      Net      Share      Net   
----------------------------------------------------------------------------
Proved producing    26.9     22.5     1632.3   1250.2      661.1    565.9   
Proved non-                                                                 
 producing           0.0      0.0      911.4    611.6      183.2    147.8   
Proved                                                                      
 undeveloped         0.0      0.0      815.5    636.0       73.5     57.9   
                 -----------------------------------------------------------
Total proved        26.9     22.5     3359.3   2497.8      917.8    771.6   
Probable            11.3      9.4     1280.9    936.0      496.2    419.5   
                 -----------------------------------------------------------
Total proved                                                                
 plus probable      38.2     31.9     4640.2   3433.8     1414.0   1191.0   
Possible             0.0      0.0     4648.9   3276.0      289.9    223.7   
                 -----------------------------------------------------------
Total proved                                                                
 plus probable                                                              
 plus possible      38.2     31.9     9289.1   6709.8     1703.9   1414.8   
-----------------===========================================================
                                                                            

-----------------------------------------------------
Reserves             Natural Gas                     
 category          Liquids (Mbbl)        Total (MBOE)
                -------------------------------------
                Company             Company          
                  Share      Net      Share      Net 
-----------------------------------------------------
Proved producing    0.5      0.4     1769.9   1367.4 
Proved non-                                          
 producing          0.0      0.0      941.9    636.2 
Proved                                               
 undeveloped        0.0      0.0      827.8    645.6 
                -------------------------------------
Total proved        0.5      0.4     3539.6   2649.3 
Probable            1.2      1.0     1376.2   1016.3 
                -------------------------------------
Total proved                                         
 plus probable      1.7      1.4     4915.7   3665.6 
Possible            0.0      0.0     4697.2   3313.3 
                -------------------------------------
Total proved                                         
 plus probable                                       
 plus possible      1.7      1.4     9612.9   6978.9 
----------------=====================================



Company Share reserves means working-interest plus royalty-interest reserves,
before deduction of royalties.




----------------------------------------------------------------------------
Forecast prices      Company share of Net Present Value Before Income Taxes 
                                                                        ($M)
----------------------------------------------------------------------------
Reserves category                                 Discounted (per year) at: 
                   ---------------------------------------------------------
                      Undisc          5%         10%         15%         20%
                   ---------------------------------------------------------
Proved producing    65,528.1   53,815.0    45,420.9    39,308.2    34,714.7 
Proved non-                                                                 
 producing          35,857.9   24,348.7    17,941.9    13,964.1    11,292.9 
Proved                                                                      
 undeveloped        30,788.2   22,027.8    16,242.0    12,298.8     9,512.5 
                   ---------------------------------------------------------
Total proved       132,174.3  100,191.5    79,604.8    65,571.1    55,520.1 
Probable            57,377.2   30,161.5    17,715.4    11,243.7     7,531.5 
                   ---------------------------------------------------------
Total proved plus                                                           
 probable          189,551.5  130,353.0    97,320.2    76,814.8    63,051.6 
Possible           182,082.3   64,684.1    30,692.7    17,160.9    10,523.4 
                   ---------------------------------------------------------
Total proved plus                                                           
 probable plus                                                              
 possible          371,633.8  195,037.0   128,012.9    93,975.7    73,575.0 
-------------------=========================================================
----------------------------------------------------------------------------
                               Edmonton  Alberta Bow                        
McDaniel's                    Par Price        River                        
 forecast      WTI Cushing  40  degrees     Hardisty  Alberta AECO          
 pricing          Oklahoma          API    Crude Oil    spot price  US / Cdn
 assumptions   ($U.S./bbl)  ($Cdn./bbl)   ($Cdn/bbl)  ($Cdn/MMBtu)  Exchange
----------------------------------------------------------------------------
2011                 85.00        84.20        72.80          4.25     0.975
2012                 87.70        88.40        75.00          4.90     0.975
2013                 90.50        91.80        75.10          5.40     0.975
2014                 93.40        94.80        77.50          5.90     0.975
2015                 96.30        97.70        80.00          6.35     0.975



Beyond year 2015, the price escalates on average 2% per year. A foreign exchange
rate of $0.975 US to $1.00 Cdn was used beyond 2015.


In 2010, company share proved reserves increased by 37.1%, company share proved
plus probable reserves increased by 23.8%, and company share proved plus
probable plus possible reserves increased by 24.1% from 2009, even after
accounting for production of 341.5 MBOE. The net present value before income tax
(discounted at 10%) of gross proved reserves at December 31, 2010 was $79.6
million, an increase of 25.6% from December 31, 2009. At December 31, 2010, the
net present value before income tax (discounted at 10%) of gross proved plus
probable reserves was $97.3 million, an increase of 19.4% year over year. At
December 31, 2010, the net present value before income tax (discounted at 10%)
of gross proved plus probable plus possible reserves was $128.0 million, an
increase of 29.9% from December 31, 2009. The reserve increases are mainly
attributable to increased reserve recognition for secondary and tertiary
recovery at Killam, Alberta. 


The reserves have been assigned as Proved, Probable and Possible. McDaniel has
assigned Possible reserves (3P) to improved Killam waterflood recovery and to
the Killam surfactant polymer flood. The Proved, Probable and Possible reserves
assigned at this time to Killam combine for a 29.4% oil recovery factor. The
"Discovered Petroleum Initially-in-place" at Killam net to Culane is estimated
by McDaniel at 42.4 million barrels of 24 degree API oil. Culane maintains 100%
ownership in this asset and is the operator.


About Culane Energy Corp.

Culane is a junior oil and gas company engaged in the exploration, development
and production of oil and natural gas in western Canada.


FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements. More particularly, this
press release contains statements concerning the Company's oil and gas reserves.
The forward-looking statements contained in this document are based on certain
key expectations and assumptions made by Culane, mainly with respect to oil
recoverability from its waterflood and surfactant polymer flood projects, the
royalty framework and other oil and gas industry factors. Although Culane
believes that the expectations and assumptions on which the forward-looking
statements are based are reasonable, undue reliance should not be placed on the
forward-looking statements because Culane can give no assurance that they will
prove to be correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and uncertainties.
Actual results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to, the failure
to obtain necessary regulatory approvals, risks associated with the oil and gas
industry in general (e.g., operational risks in development, exploration and
production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to production,
costs and expenses, and health, safety and environmental risks), commodity price
and exchange rate fluctuations and uncertainties resulting from potential delays
or changes in plans with respect to exploration or development projects or
capital expenditures. Certain of these risks are set out in more detail in
Culane' Annual Information Form for the year ended December 31, 2009, which has
been filed on SEDAR and can be accessed at www.sedar.com.


The forward-looking statements contained in this document are made as of the
date hereof and Culane undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


The term "boe" may be misleading, particularly if used in isolation. A boe
conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.