Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

January 19, 2012 09:05 ET

Canoel Announces the Signing of A Memorandum of Understanding With the Owner of an Emulsion Fuel Technology

CALGARY, ALBERTA--(Marketwire - Jan. 19, 2012) -

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.

Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to announce that it has signed a memorandum of understanding with the owner of a technology (the "Technology Company") regarding the ability to create an emulsion between some petrol products, mainly gasoil and fuel oil and water (the "Emulsion Fuel Technology").

Canoel will become, upon signing the final contract, the exclusive licensee to sell and distribute the Emulsion Fuel Technology and the related equipment and additive, initially in four countries to be determined by Canoel.

Oil-in-water emulsion fuels utilise water as the diluent, providing the user with many potential benefits both in terms of price and performance.

In the last 30 years, the technology of application of emulsion fuels to many boilers, furnaces and diesel engines has attracted much research targeting both the aspects from the point of view of the energy saving policy and of the prevention of atmospheric pollution.

However, it has only been within the last 20 years that the extensive use of emulsified fuels has been accepted as an alternative fuel option.

The growing interest for the Emulsion Fuel Technology is, mainly, due to the recent high cost of hydrocarbons and to the growing attention to prevent environmental pollution.

The main problem of emulsion fuel has been the stability of the emulsion resulting from the initial chemical process while being stocked and/or being transported before being burned.

The Technology Company that Canoel intends to join forces with is claiming to have solved the problem of stability of the resulting emulsion fuel through the use of proprietary technology, equipment and additives.

The activity of Canoel will primarily be in dealing with multinationals, most of them being oil majors, negotiating contracts for the utilization of the Emulsion Fuel Technology and the related technology, equipment and chemical additives.

Canoel and the Technology Company intend to progress rapidly to the preparation of the final contract.

Canoel expects to issue within one month an exhaustive Press Release upon signing a definitive agreement.

Forward-Looking Information

Certain information in this press release is forward-looking within the meaning of Canadian securities laws as it relates to anticipated events and strategies. When used in this context, words such as will, anticipate, believe, plan, intend, target, and expect or similar words suggest future outcomes.

Forward-looking information in this press release includes, among other things, information relating to: (i) the entering into a definitive agreement between the Company and the Technology Company to act as the exclusive licensee to sell and distribute the Emulsion Fuel Technology; (ii) the ability of the Company to market the Emulsion Fuel Technology to customers or consumers thereof; and (iii) the timelines for the Company entering into a definitive agreement with the Technology Company.

These statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. The material factors and assumptions used to develop these forward-looking statements include, but are not limited to: (i) the market for and industry interest in emulsified fuels generally and the Emulsion Fuel Technology specifically; (ii) the commercial application and use of emulsified fuels; (iii) the economic and environmental benefits of using emulsified fuels generally and the Emulsion Fuel Technology specifically; (iv) the industry problems and concerns with the application and use of emulsified fuels; and (v) the proprietary nature of the Emulsion Fuel Technology.

Whether actual results, performance or achievements will conform to the Company's expectations and predictions is subject to a number of known and unknown risks and uncertainties which could cause actual results and experience to differ materially from the Company's expectations. Such risks and uncertainties include, but are not limited to, risks relating to: (i) the performance of the Emulsion Fuel Technology; (ii) the marketability of the Emulsion Fuel Technology; (iii) the application and use of the Emulsion Fuel Technology; (iv) the commercial viability and industry benefits of the Emulsion Fuel Technology; and (v) the proprietary nature of the Emulsion Fuel Technology. If any such risks actually occur, they could materially adversely affect the Company's business, financial condition or results of operations. In that case the trading price of the Company's common shares could decline, perhaps materially.

Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Forward-looking statements are provided for the purpose of providing information about management's current expectations, and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Canoel does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in Canoel's expectations or any change in events, conditions or circumstances on which any such statement is based, except as 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

  • Canoel International Energy Ltd.
    Jose Ramon Lopez Portillo
    Chairman of the Board
    (403) 938-8154
    (403) 775-4474 (FAX)

    Canoel International Energy Ltd.
    Andrea Cattaneo
    CEO & President
    (403) 938-8154
    (403) 775-4474 (FAX)
    info@canoelenergy.com