Culane Reports Successful Oil Well in SW Saskatchewan

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS. 

Culane Energy Corp. ("Culane" or the "Company") (TSX VENTURE:CLN) is pleased to
announce that its drilling operations at Notukeu in southwest Saskatchewan have
resulted in a successful 100% working interest horizontal oil well in the Upper
Shaunavon formation. Initial production rates are approximately 15 m3 (94
barrels) of oil per day with an 8 to 10 % water cut. The Notukeu 2-6-11-17W3 was
drilled in February 2010 and following an initial completion and production
testing period was shut in for most of April, May and June because of spring
break-up and extended delays due to extremely wet weather and field conditions. 


When recompletion work was finally able to occur, the well was sidetracked and a
new leg drilled in the Upper Shaunavon. The liner in the first leg could not be
removed, necessitating the drilling of a new leg from the same well-bore, and
the abandonment of the original leg. The horizontal length of the new leg is
approximately 600m. A Packers Plus liner assembly was run and the new leg frac'd
with a nine stage, 135 tonne frac (15 tonnes per stage) on July 31, 2010. The
well was flowed back immediately after the frac. Overnight, the well flowed back
504 barrels of 22 degrees API oil. The single-well battery was re-piped and the
well was placed back on production on August 6. 


Initial completion attempts were unable to establish full communication with the
Upper Shaunavon reservoir resulting in unusually low reservoir pressure readings
and declining production rates caused mainly by drilling damage. The drilling
damage has been overcome with the multi stage sand frac completion that has
achieved full communication with the reservoir. The well was put on production
and after a week of production the well bore fluid levels started to stabilize.
The well is producing approximately 15 m3 (94 barrels) of oil per day with an 8
to 10 % water cut. Water production based on analysis is substantially load
fluid from the frac operation. 


At Notukeu, Culane owns 13 sections of land with a 100% working interest and has
identified an additional 45 drill locations. The Company currently has
horizontal well project approvals from Saskatchewan Energy and Resources for
eight new wells and has made a horizontal well project application for another
23 drill locations. Drilling operations are scheduled to recommence at Notukeu
by the second week of September. The next wells at Notukeu are expected to be
drilled with longer horizontal legs which management believes will produce at
higher rates than the first well at 600m.


As previously announced, Culane has acquired a 100% working interest in close to
two townships of land (69 sections) in southwest Saskatchewan. Culane acquired
this land strictly for its oil potential. Culane's venture into Saskatchewan
this year has been one of many technical challenges that includes the associated
learning curve that is part of dealing with new technical issues. Based on
initial results in this area, management believes that Culane can now move back
into an organic growth phase through the development drilling program of its
Notukeu property. At the same time, Culane is working its way through technical
issues on other oil projects that it believes can also be economic.


Culane also expects to be conducting more exploration drilling this year and
into 2011 in southwest Saskatchewan. Notukeu was only the first of a number of
potential oil opportunities that Culane has identified on its lands. Management
believes that Culane's entry into Saskatchewan and its subsequent oil discovery
at Notukeu represents a major turning point for Culane and its shareholders as
the Company positions itself for the next stage of oil production growth. Culane
is currently producing approximately 1,100 BOEs per day (77% oil, 23% natural
gas).


About Culane Energy Corp.

Culane Energy is a junior oil and gas company engaged in the exploration,
development and production of oil and natural gas in Alberta and Saskatchewan.


Reader Advisories

Forward-Looking Statements: This news release contains certain forward-looking
statements, including management's assessment of the impact of drilling results,
the Company's future plans and operations and the expected timing and results
from operations that involve substantial known and unknown risks, uncertainties
and assumptions, certain of which are beyond Culane's control. Such risks,
uncertainties and assumptions include, without limitation, those associated with
oil and gas exploration, development, exploitation, production, marketing,
processing and transportation, loss of markets, volatility of commodity prices,
currency fluctuations, imprecision of reserve estimates, environmental risks,
competition from other producers, inability to retain drilling rigs and other
services, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources, the impact of general economic conditions in Canada, the United States
and overseas, industry conditions, changes in laws and regulations (including
the adoption of new environmental laws and regulations) and changes in how they
are interpreted and enforced, increased competition, the lack of availability of
qualified personnel or management, fluctuations in foreign exchange or interest
rates, stock market volatility and market valuations of companies with respect
to announced transactions and the final valuations thereof, and obtaining
required approvals of regulatory authorities. Culane's actual results,
performance or achievements could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no assurances can
be given that any of the events anticipated by the forward-looking statements
will transpire or occur, or if any of them do so, what benefits that Culane will
derive therefrom. Readers are cautioned that the foregoing list of factors is
not exhaustive. Additional information on these and other factors that could
affect Culane's operations and financial results are included in reports,
including Culane's annual information form for the financial year ended December
31, 2009, on file with Canadian securities regulatory authorities and may be
accessed through the SEDAR website (www.sedar.com). All subsequent
forward-looking statements, whether written or oral, attributable to Culane or
persons acting on its behalf are expressly qualified in their entirety by these
cautionary statements. Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and Culane does
not undertake any obligation to update publicly or to revise any of the included
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.