APIC Petroleum Corporation
TSX : API

APIC Petroleum Corporation

January 31, 2012 12:21 ET

APIC Petroleum Corporation Announces Corporate Initatives

TORONTO, ONTARIO--(Marketwire - Jan. 31, 2012) - APIC PETROLEUM CORPORATION (TSX VENTURE:API) (the "Company" or "APIC") is pleased to announce that on January 12, 2012 it signed a memorandum of understanding (the "MOU") with Green Power 2020 SAS ("Green Power"), a development and engineering enterprise incorporated under the laws of France, pursuant to which the parties agreed to jointly evaluate and potentially develop alternate, sustainable energy projects in Albania in the context of the Mediterranean Solar Plan (the "MSP") developed by the Union for the Mediterranean (the "Union"). Green Power has several projects in progress in member countries of the Union and Albania offers excellent scope to further its lead role in developing renewable energy in Europe and the Middle East.

In respect of the Company's intention to acquire oil and gas properties located in Albania, on December 14, 2011 the Albanian Parliament approved a privatization law for the state oil company Albpetrol Sh. A. ("Albpetrol"). The privatization law contemplates that 100% of Albpetrol's shares are to be sold to strategic investors. The criteria for the selection of the strategic investors and the evaluation of such offers is to be determined by the Council of Ministers of Albania. It is expected the privatization process will be completed by November 2012. In this regard, APIC has signed an MOU with a well established Albanian business partner, has commenced its review of Albpetrol and will seek to secure a meaningful participation in this process.

The above initiatives represent the initial steps by APIC in developing a comprehensive strategy of energy development and distribution in Albania. As noted by the Union partners: "The common vision is to create new lines for sustainable electricity by researching the feasibility of a transmission network between the North and South rims of the Mediterranean, and by development interconnections between power systems around the whole Mediterranean. These new links will be established by building new electricity transmission lines and improving the integration of power systems".

In consideration of the above, APIC intends to complete a non-brokered private placement of up to 16,000,000 common shares (the "Common Shares") of the Company at a price of $0.20 per Common Share for gross proceeds of up to Cdn.$3,200,000 (the "Offering"). The Common Shares to be issued will carry a four-month hold period under Canadian securities laws from the date of issuance. Completion of the Offering is subject to approval of the TSX Venture Exchange.

Proceeds from the Offering will be used to evaluate Albpetrol's assets to enable the Company to assess its potential participation in the privatization process and to assess other energy focused projects. Any finder associated with the Offering will be entitled to receive a finder's fee equal to 5% of the gross proceeds received from subscribers introduced to the Offering by the finder.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. All dollars in this release are in Canadian funds.

FORWARD-LOOKING STATEMENTS

This press release includes certain "forward-looking statements". All statements regarding the ability of the Company to successfully complete the Offering, acquire shares of Albpetrol or develop alternative energy projects in Albania are forward- looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include the inability of the Company to close the Offering due to the state of the capital markets, or the inability of the Company to complete the acquisition of Albpetrol's shares or develop alternative energy projects in Albania due to regulatory, competitive, due diligence or political issues and other risk factors as discussed in the Company's filings with Canadian securities regulatory agencies. The Company expressly disclaims any obligation to update any forward-looking statements except as may be required by law.

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

  • APIC Petroleum Corporation
    Dennis A. Sharp
    Chief Executive Officer
    (416) 367-0150
    (416) 367-0165 (FAX)

    APIC Petroleum Corporation
    John Clark
    Chief Financial Officer
    (416) 367-0150
    (416) 367-0165 (FAX)