Culane Receives Waterflood Approval

Culane Energy Corp. ("Culane" or the "Company") (TSX VENTURE:CLN) is pleased to
announce that it has received regulatory approvals for four water flood
applications submitted by Culane for its Killam project, in the first and second
quarters of 2009. As previously announced by Culane, the regulator releases
water flood approvals without any advance notice to the operator. This being the
case, Culane commenced development of its water injection facilities as of mid
July. After the lease preparation, pipeline surveying and all major equipment
was procured, the water injection facility and pipeline construction had
commenced on August 24th. By the end of September, the Killam water flood
injection facility construction was completed. 


With the completion of the water injection facilities and government approval of
its water flood applications, Culane intends to increase water injection rates
from approximately 1,250 up to 6,000 barrels per day essentially recharging the
reservoir by increasing the reservoir pressure and subsequently reversing the
oil production decline that occurred during the primary production phase of the
reservoir. This will be achieved through a combination of vertical well
injectors and converted horizontal wells. When Culane has replaced sufficient
reservoir voidage and a clear increase in reservoir pressure and well fluid
levels is observed, Culane intends to introduce surfactant polymer to the water
flood. Existing pool analogies indicate that the addition of surfactant polymer
has the potential to increase the oil recovery factor to in excess of 40%. The
"Discovered Petroleum Initially-in-place" at Killam net to Culane's interest is
estimated at approximately 42 million barrels of 24 API oil.


Culane views the Killam project as a solid low risk growing production base that
along with rising oil prices will not only fund, but accelerate the next stage
of growth for the Company. In January of 2009, Culane commenced an active full
cycle oil exploration initiative in Western Canada. Culane previously announced
completion of a flow through financing of $3 million at $ 2.15/share. The
proceeds of this financing will be used to fund Culane's new oil exploration
initiative. Horizontal drilling locations have been selected, initial surface
approvals have been acquired, and surveying is beginning with well licensing to
follow. Culane anticipates it will begin drilling its new core area by early
January. 


Culane is an oil weighted company (72% oil, 28% natural gas), and because of
this fact and in spite of the economic downturn over the past year, Culane has
been able to take advantage of its stock buy back plan by purchasing and
returning to treasury 723,500 common shares at an average price of $0.99 per
share, construct its water injection facilities at Killam, and increase its land
holdings in new oil prone areas, while at the same time continually reducing its
debt. As of today's date, Culane's debt is approximately $12 million. Culane
currently has approximately 24.5 million common shares outstanding. 


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 anticipated results from the
Company water flood program, oil recoverability, and anticipated exploration
activities. The forward-looking statements contained in this document are based
on certain key expectations and assumptions made by Culane. 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 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.