Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

September 15, 2009 09:30 ET

Canoel Announces Memorandum of Understanding to Purchase Oil Producing Properties in Argentina

CALGARY, ALBERTA--(Marketwire - Sept. 15, 2009) -

THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to announce that it has entered into a Memorandum of Understanding with a US based corporation for the purchase of two adjacent oil producing properties in Argentina.

The properties are located in the Patagonia region in southern Argentina and currently together produce approximately 170 barrels of oil per day with no associated gas. Canoel will also be investigating what has been described as additional development potential of these two oil production properties.

The acquisition will be completed through the acquisition of the shares of the companies which own the properties. The Company intends to conduct the required additional due diligence, while at the same time raising the funds to pay for the consideration. The purchase price will be US $2,400,000.00 in exchange for which Canoel will acquire the shares of the companies, their ongoing businesses, the two concessions and the existing production equipment so that Canoel will be able to continue the income stream as before immediately upon closing. A formal Purchase and Sale Agreement is in the process of preparation to formalize the acquisition.

With regard to another pending acquisition property, BLOCK XXIII in Mongolia, Canoel has agreed with the vendor to extend the due diligence period until December 31st, 2009, pending clarification of legislative and contractual terms with the vendor and local authorities as well as the completion of the related financing.

The Company also wishes to announce that it has granted 72,500 incentive stock options to each of its two newly appointed directors, Dario Sodero and Francesco Zofrea. In accordance with the policies of the TSX Venture Exchange, these options are exercisable for a period of five years at an exercise price of CAD $0.23 per share.

Neither 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.

Contact Information

  • Canoel International Energy Ltd.
    Andrea Cattaneo
    Chief Executive Officer and President
    (403) 629-9799
    or
    Canoel International Energy Ltd.
    James H. Grossman
    Chairman
    (403) 629-9799
    info@canoelenergy.com