June 6, 2013 - Calgary, Alberta - Canoel International Energy
Ltd. ("Canoel" or the "Company") (TSX VENTURE: CIL) is pleased to
announce that it has completed the acquisition of several Italian
producing and exploration properties after receiving the final
approval from the Italian Ministry of Economic Development to the
change of ownership. The decree from the Ministry will now be
recorded in the Italian Official Gazette.
As initially reported on September 6, 2012, Canoel had entered
into a purchase and sale agreement with Medoilgas Italia S.p.A. and
Medoilgas Civita Limited, each a subsidiary of Mediterranean Oil
and Gas Plc (collectively, "MOG") (AIM: MOG) to acquire MOG's
entire working interest in 13 onshore producing and exploration
properties.
The production and exploration assets (the "Assets") comprise
(i) 6 operated onshore gas production concessions: Masseria
Grottavecchia (20% working interest), San Teodoro (100% working
interest), Torrente Cigno (45% working interest), Misano Adriatico
(100% working interest), Sant'Andrea (40% working interest) and
Masseria Petrilli (50% working interest); (ii) 3 non-operated
onshore gas production concessions: Masseria Acquasalsa (8.8%
working interest), Lucera (13.6% working interest) and San Mauro
(18% working interest) (collectively, the "Gas Licences"); (iii) an
operated exploration permit: Montalbano (57.15% working interest)
(the "Exploration Permit"); and (iv) and 3 exploration permit
applications: Serra dei Gatti (100% working interest), Villa
Carbone (50% working interest) and Colle dei Nidi (25% working
interest) (the "Exploration Applications").
On completion of the transaction, Canoel paid MOG a nominal sum
of EUR100 for the acquisition of MOG's working interests in the
Assets and has assumed the liability for future plugging,
abandonment and site remediation costs associated with the
Assets.
At the same time, Canoel received a cash payment of EUR1,250,000
(approximately $1,650,000) as Medoil's contribution toward future
abandonment and remediation costs. Canoel also received an initial
advance of EUR104,000 ($137,000) which represents a portion of the
revenue MOG received from the Assets during the period between the
effective date of the Proposed Transaction (August 24, 2012) and
the most recent production statements, net of allowable operating
costs, agreed capital expenditure associated with the Assets and
certain deposits for future capital expenditures. Additional
revenue adjustments up to the final transaction date will be paid
to Canoel in due time.
This acquisition represents a unique opportunity for Canoel to
substantially augment its Italian operations with a stable
production base plus development and exploration opportunities.
Most of the Gas Licenses are located in the southern part of
continental Italy in the Regions of Puglia, Basilicata, Molise,
Abruzzo and Marche. Last year Canoel was awarded 2 gas producing
concessions in this same geographical area by the Italian
"Ministero dello Sviluppo Economico". These concessions, Torrente
Vulgano and Canaldente, are respectively located in the Regions of
Puglia and Basilicata.
The new Exploration Permit and Exploration Applications are also
located in the southern part of Italy and cover an area of
approximately 1,285 square kilometres.
Production from the acquired Gas Licences currently accounts for
approximately 13,800 m3/day equal to 487,384 standard cubic
feet/day
Current European pricing metrics offer a premium to North
American commodity prices, with current cost per MM Btu being
equivalent to approximately $13.50.
While the major contribution to Canoel's business remains its
oil production in Argentina, with this acquisition Canoel will
further develop its second operations centre in Italy.
Management believes this is a very important step for Canoel as
demand for gas in Italy is very strong. Although Italy ranks as the
4th largest producer of oil & gas in Europe, with 8,330 billion
m3 (294,500 bcf) of annual natural gas production, the country
still imports large quantities of gas from Eastern Europe and North
Africa.
Canoel has engaged an independent engineering company to prepare
a 51-101 report on the Gas Licences and the Exploration Permits as
well as the previously acquired Torrente Vulgano and Canaldente
concessions.
Andrea Cattaneo, the company's CEO, states "These new
concessions will increase our total revenue and expand our daily
operations from crude oil to natural gas in an area where gas
prices are very attractive.
The acquisition of these 13 properties will complement Canoel's
current Italian portfolio of 2 gas properties and strengthen its
operational structure. Our Italian subsidiary, Canoel Italia
S.r.l., already operates two gas licences and will now maximize its
resources and existing infrastructures in Italy with this strategic
addition of production with development and exploration upside.
Furthermore, as described above, Canoel has received a net
payment of approximately $1,830,000 (corresponding to approximately
$0.022 per share) which, in the current financial markets
situation, is very welcomed"
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.
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) the ability of the
Company to operate the Gas Licences; (ii) the concessions
increasing the Company's total revenue; and (iii) the sales prices
expected to be received for gas produced from the properties
subject to the exploration licences.
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 raise the needed capital to
operate the operated Gas Licences; and (ii) that the Company will
be able to sell the gas produced from the Assets, if any, at
current market prices.
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 Company is
able to maintain tenure to Gas Licences and the Exploration Permit;
(ii) whether the Exploration Applications will be successful; (iii)
the ability of the Company to effectively operate the operated Gas
Licences; and (iv) 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.
For further information, please contact:
Jose Ramon Lopez Portillo Andrea Cattaneo
Chairman of the Board President & CEO
Email: info@canoelenergy.com
Telephone: (403) 938-8154
Telefax: (403) 775-4474
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.
(TSXV:CIL)
Historical Stock Chart
From Aug 2024 to Sep 2024
(TSXV:CIL)
Historical Stock Chart
From Sep 2023 to Sep 2024