Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

October 18, 2010 08:11 ET

Canoel Completes Sale of Shares of Oren Oil ASA

CALGARY, ALBERTA--(Marketwire - Oct. 18, 2010) -

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Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to announce that it has sold to WG Utvikling AS, Oslo, a limited company registered in Norway ("WG"), for a nominal amount, all 602,420,666 shares of Oren Oil ASA ("Oren") (comprising approximately 51% of the issued and outstanding shares of Oren) that Canoel recently purchased from former shareholders of Oren. 

WG is a venture company in Norway, whose principal businesses are in healthcare and real estate.

As previously announced, in connection with Canoel's original purchase of the Oren shares, Canoel also acquired 27% of the shares of Saganeft LLC, which is part owner of exploration blocks in certain Russian oil and gas assets, as well as a management and consulting role in all the other assets formerly owned by Oren through its subsidiaries in Russia, all of which will be retained by Canoel notwithstanding its sale of the Oren shares to WG.

Canoel, under certain conditions, will be entitled to a 50% sale commission out of any sales proceeds from the Russian assets, net of trust company, legal and marketing fees. The shares and the related financing of the Russian companies originally cost Oren an amount nearing USD 100,000,000; however, the current market value of the Russian assets is, at present, uncertain, as considerable deterioration has occurred to these companies, one of which has become insolvent.

Canoel, as previously announced, also completed a private placement of its shares to certain of the former Oren shareholders and managers, in connection with its purchase of Oren shares, resulting in gross proceeds to Canoel of approximately CAD 1,100,000.

Oren in its current form as sold to WG by Canoel, has the characteristics of a shell company, with very few assets and few liabilities.

Andrea Cattaneo, CEO and President of Canoel declared: "We are pleased to have helped the troubled Norwegian company Oren Oil ASA to find a new avenue in the hands of local respected business and to have made available to all Oren shareholders our competence in the international market - in this case Russia.

We look forward to further developing our relationship with our new shareholders, the former Oren shareholders.

Whilst the expansion and development of our Argentinean and Tunisian assets remain our strategic priority, I am delighted to have achieved in Norway for all shareholders of Canoel additional capital of USD 1,100,000 and an option to achieve profit through a oil& gas exercise in Russia, the feasibility of which we will carefully review".

Neither the 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.
    Andrea Cattaneo
    Chief Executive Officer and President
    (403) 262 95 96
    or
    Canoel International Energy Ltd.
    Jose Ramon Lopez-Portillo
    Chairman
    (403) 262 95 96
    info@canoelenergy.com