Canoel International Energy Ltd.

Canoel International Energy Ltd.

November 28, 2012 06:00 ET

Canoel Provides Update on Italian Acquisition and Announces Appointment of Interim CFO

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) -


Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to advise that the process of obtaining authorisation from Italian regulatory authorities for the acquisition of the Medoilgas assets in Italy previously announced continues to proceed toward closing. On September 6, 2012 the Company announced that it had entered into a purchase and sale agreement with Medoilgas Italia SpA and Medoilgas Civita Limited (collectively, "MOG") for working interests in 13 onshore exploration and production assets in Italy.

Upon completion of the Italian acquisition the Company will (i) pay MOG the sum of EUR100 as consideration for the acquisition of MOG's working interests in the assets; (ii) assume the liability for all future plug, abandonment and site remediation costs associated with the assets; (iii) receive EUR1,250,000 (approximately CAD $1,610,000) as a partial contribution towards the future plug, abandonment and site remediation costs for the assets; and (iv) receive the revenue MOG receives from the assets during the period between the effective date of the Italian acquisition (August 24, 2012) and the date the transaction is closed, net of allowable operating costs and agreed capital expenditure associated with the assets and incurred by MOG from the effective date until closing.

Canoel also announces that, for personal reasons, Mr. John Arne Farstad of Norway has resigned as the Company's CFO and that Mr. Luigi Regis Milano, a director of the company, has agreed to act as the interim CFO.

Andrea Cattaneo, the company's CEO, states: "We wish to thank Mr. John Arne Farstad for his contribution in assisting the Company develop to this stage."

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, mandated, 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) obtaining regulatory approval for the Italian acquisition; and (ii) the closing of the Italian acquisition.

These statements are based on certain assumptions and analyses made by the Company in light of its experience, 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 ability of the Company to obtain regulatory approval for the Italian acquisition, as contemplated; and (ii) the ability of the Company to raise the needed capital to operate the assets upon closing of the Italian acquisition.

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) whether the Italian acquisition will be completed or close as expected; and (ii) obtaining new financing, as required, to operate and maintain the properties. 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)