Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

September 15, 2011 18:00 ET

Canoel Announces New Financing and Termination of Relationship With Investor Relations Firm

CALGARY, ALBERTA--(Marketwire - Sept. 15, 2011) -

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.

New Financing

Canoel International Energy Ltd. (TSX VENTURE:CIL) ("Canoel" or the "Company") is pleased to announce that is 100% subsidiary in Argentina, Petrolera Patagonia Srl (previously called Central Patagonia Srl) ("Petrolera Patagonia") has secured new financing in the amount of US$500,000 through ARG Capital S.A. (the "New Financing") in Buenos Aires.

The New Financing is made by way of loans with a duration of 15 months from drawdown and a repayment in a single bullet solution at the maturity date.The interest rate is 11%.The intention of Canoel is to partially use this financing to complete the repayment of the final portion of the vendor loan granted in July 2010 (and still outstanding) with Central Argentina Corporation, the vendor of our fields in Argentina, while using the remaining portion for development of the fields.

Canoel has assisted its subsidiary by issuing a comfort letter.

Termination of Investor Relations Agreement

As well, Canoel is also announcing that it has terminated during the probation period its investor relations services agreement with Peak Resource Capital Partners Inc. ("Peak"), executed on August 10, 2011 (the "Agreement"), which Agreement was previously described in Canoel's press release dated August 11, 2011. Peak was originally retained to increase the exposure and awareness of corporate initiatives of Canoel to the financial community by reaching targeted retail and institutional investors.

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) 829-1160
    (403) 775-4474 (FAX)
    info@canoelenergy.com

    Canoel International Energy Ltd.
    Andrea Cattaneo
    CEO & President
    (403) 829-1160
    (403) 775-4474 (FAX)
    info@canoelenergy.com