Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

October 21, 2008 18:28 ET

Canoel Provides Update on Qualifying Transaction

CALGARY, ALBERTA--(Marketwire - Oct. 21, 2008) - Canoel International Energy Ltd. ("Canoel" or the "Corporation") (TSX VENTURE:CIL.P) announces that the minimum gross proceeds to be raised under its previously announced financings, in news releases dated September 19 and October 17, 2008, has been reduced from CDN$3,000,000 to CDN$2,700,000.

Canoel previously announced, in its press releases dated July 21 and September 19, 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 the participation in the exploration permits to be 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.

Trading in the common shares of the Corporation will remain halted until the Corporation has completed its 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)