Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

November 25, 2008 14:14 ET

Canoel Closes Financings

CALGARY, ALBERTA--(Marketwire - Nov. 25, 2008) - Canoel International Energy Ltd. ("Canoel" or the "Corporation") (TSX VENTURE:CIL.P) is pleased to announce that it has closed its private placement financing (the "Private Placement") and its financing pursuant to a TSX Venture Exchange Short Form Offering Document (the "SFOD Offering" and together with the Private Placement, the "Financings") for aggregate gross proceeds of CDN$2,305,400, from the sale of 9,221,600 units of the Corporation ("Units") at $0.25 per Unit.

Each Unit consists of one common share of the Corporation and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to acquire one common share of the Corporation at a price of $0.40 per common share until 4:30 p.m. (Calgary time) on November 21, 2010 (subject to acceleration in certain circumstances).

Northern Securities Inc., together with its selling group members for the SFOD Offering, received a commission and was granted options ("Agent's Options") to purchase in the aggregate 371,756 Units of the Corporation at a price of $0.25 per Unit, which Agent's Options are subject to a four month hold period ending March 22, 2009. In addition, a commission was paid and Agent's Options were granted to certain arm's length parties to the Corporation in connection with the Financings.

Canoel previously announced, in its news releases dated July 21, September 19, October 21 and November 14, 2008, that it has entered into a farmout and participation agreement for the acquisition from Cygam Energy Inc. ("Cygam") of oil and gas interests in three onshore exploration permits in the Bazma, Jorf and Sud Tozeur areas of Tunisia. Canoel intends for its participation in the exploration permits to qualify as the Corporation's Qualifying Transaction. The funds from the Financings will be used by the Corporation to pay its earning costs under the participation and farmout agreement with Cygam and its wholly owned subsidiary, Rigo Oil Company Limited, as set out in the news release dated November 14, 2008.

Trading in the common shares of the Corporation is currently halted. Trading will resume following the issuance by the TSX Venture Exchange ("Exchange") of the Final Exchange Bulletin in respect of the Corporation's Qualifying Transaction.

ABOUT CANOEL

Canoel is a capital pool company ("CPC") that was listed on April 10, 2008. Canoel has not commenced commercial operations and has no assets other than cash. Except as specifically contemplated in the CPC policy, until the completion of the qualifying transaction, the Corporation will not carry on business, other than the identification and evaluation of companies, business or assets with a view to completing a proposed qualifying transaction.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Canoel International Energy Ltd.
    James Lawson
    Director
    (403) 269-3955
    (403) 263-4247 (FAX)