Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

March 28, 2011 09:25 ET

Canoel Announces Co-Operation in Zambia With Mafula Energy Ltd

CALGARY, ALBERTA--(Marketwire - March 28, 2011) -

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Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) announces that it has agreed to assist and advise strategically Mafula Energy Limited in its oil & gas exploration activity in Zambia.

Zambia is a country bordering with Angola, Democratic Republic of Congo, Zimbabwe and Tanzania; all these countries have had important oil discoveries and production developments in recent years, especially Angola and DRC. No discoveries have been made yet in Zambia.

Mafula Energy Ltd ("Mafula") is a Zambian registered company that intends to seek a listing on a stock exchange in due course.

Canoel will obtain in return for its work an equity stake of one per cent (1%) in Mafula. Canoel will also receive options over 4% of the equity of Mafula, such options being exercisable as to 2% of Mafula for the sum of $250,000 and expiring end March 2012 and a further 2% of Mafula for the sum of $850,000 and expiring end September 2012.

Any additional consulting services provided by Canoel to Mafula will be carried out at international standard oil & gas rates.

Mafula intends to enter discussions with Canoel in respect of the possible farm out of oil and gas exploration blocks in which Mafula may be interested now and in the future.

Andrea Cattaneo, Ceo & President of Canoel stated : "It is a pleasure for us to be involved in providing services to a junior oil and gas exploration company in Zambia. We look forward to developing the relationship.

As reported previously, Canoel has also become an officially recognized operator, through its production and development activities in Don Alberto and Don Ernesto fields in Argentina.

Our global team is comprised of individuals with experience of both oil and gas exploration and production.

We are glad to be assisting Mafula in seeking oil discoveries in one of the most attractive oil areas at present, Continental Africa, especially in consideration of the political concerns being raised in other important oil producing regions".

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.
    Jose Ramon Lopez Portillo
    Chairman of the Board
    (403) 938 8154
    info@canoelenergy.com
    or
    Canoel International Energy Ltd.
    Andrea Cattaneo
    CEO & President
    (403) 938 8154
    info@canoelenergy.com