Canoel International Energy Ltd.
TSX VENTURE : CIL

Canoel International Energy Ltd.

October 25, 2010 09:01 ET

Canoel Lowers Its Debt

CALGARY, ALBERTA--(Marketwire - Oct. 25, 2010) -

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Canoel International Energy Ltd. ("Canoel") (TSX VENTURE:CIL) is pleased to announce that it has entered into an agreement with a holder of convertible debentures in the aggregate principal amount of CA$308,000 to settle the Debt for an aggregate of 2,566,667 Common Shares in the capital of Canoel at a deemed price of CA$0.12 per share and share purchase warrants entitling the holder to purchase up to an aggregate of 1,283,333 Common Shares in the capital of Canoel at a price of CA$0.17 per share for a period of one year from the date of issue.

Furthermore, as previously announced, in connection with Canoel's acquisition of shares of Oren Oil ASA ("Oren") , Canoel has entered into agreements with certain Oren creditors to settle debt in an aggregate amount of NOK 1,295,917.38 owing to them by Oren through the issuance of an aggregate of 1,813,051 Common Shares in the capital of Canoel at a deemed price of NOK 0.73 (approximately CA$0.12 per share).

The issuance of the Common Shares and share purchase warrants to settle the aforementioned debts is subject to the approval of the TSX Venture Exchange.

Andrea Cattaneo, CEO & President of Canoel stated: " I am pleased to report that Canoel is able to lower its debt by converting some of it into equity."

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) 262-9596
    or
    Canoel International Energy Ltd.
    Jose Ramon Lopez-Portillo
    Chairman
    (403) 262-9596
    info@canoelenergy.com