Canoel Receives Approval for New Gasfield Production
March 10 2014 - 9:01AM
Access Wire
Calgary, Alberta / ACCESSWIRE / March 10, 2014
/ Canoel International Energy Ltd.
("Canoel" or
the "Company")
(TSX VENTURE: CIL) is pleased to confirm that Canoel Italia Srl,
its 100% owned Italian subsidiary, has received the final approval
for the Environmental Impact Assessment report which had been
prepared for the Torrente Vulgano gasfield. As disclosed previously
by the Company, the Ministry of Economic Development had awarded
this field to Canoel on the basis of the Company's technical
presentation and program to resume production after a competition
between several oil and gas companies. Approval of the
Environmental Impact Assessment report will now allow Canoel to
proceed with the final steps to commence production. Gas production
is anticipated to start in the latter part of 2014 at a rate of
10,000 cubic meters/day (approximately 353 mcf/d or 59 boed).
Reserves, as presented in the company's most recent NI 51-101
report for the year ended March 31, 2013, have been assessed at 852
million cubic feet of natural gas. Given the current operating
parameters, Canoel projects that these assets will create revenue
of approximately $1.49 million annually.
Masseria
Grottavecchia
Also in Italy, Canoel has
initiated the approval process for the installation a 1 MW
cogeneration power facility at the Masseria Grottavecchia field
which the Company operates with a 20% working interest.
Cogeneration equipment, worth approximately $700,000, has already
been acquired. The Company expects that sale of electricity to the
state-owned electrical distribution company (ENEL) will commence by
the first quarter of 2015. Conversion from gas to electricity is
anticipated to maximize revenues from this field. Current gross
reserves of the Masseria Grottavecchia field are estimated at 26
million cubic meters (918 million cubic feet). Initial gross
production is expected at 21,000 cubic meters/day (approximately
740 mcf/d) or 4,200 cubic meters/day net (148 mcf/d net).
Considering an average gross production of 7,000 cubic meters/day
(247 mcf/d or 41 boed) over the next 10 years and that 1m3 is the
equivalent of 3kwh, the field is anticipated to generate 78,000 MW
of total electricity. The numbers and calculations presented here
are internal estimates by Canoel and are expected to be validated
in the forthcoming NI 51-101 report for the year ending March 31,
2014.
Canoel's CEO, Andrea Cattaneo,
states: "It is
exceptionally encouraging to see the progress on these two fields
within our portfolio of operated Italian properties, especially
considering that these properties will increase our Italian
production by an additional 14,200 cubic meters/day (approximately
400 mcf/d or 67 boed). Our strategy of acquiring low cost fields
where we can increase production levels and generate cash flow
continues to advance the company's growth and allows management the
time to source new acquisitions of larger
scale."
About Canoel
Canoel is a TSX-V listed
company trading under the symbol "CIL". The Company's focus is
creating shareholder value through the acquisition and development
of low-risk exploration and production opportunities which offer
strong logistics and close proximity to refineries and pipelines.
Canoel's Management and Directors have extensive international and
governmental experience and possess the contacts and technical
knowledge necessary to execute their strategy.
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
Statements
Certain information in this press
release is forward-looking within the meaning of applicable
securities laws, and related to anticipated financial performance,
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. By their nature,
such statements are subject to significant risks, assumptions and
uncertainties, which could cause the Company's actual results and
experience to be materially different than the anticipated results
or expectations expressed. Although Canoel believes that the
expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward looking statements and
information because Canoel can give no assurance that they will
prove to be correct.
In particular, forward-looking
information and statements include, but are not limited to: (i) the
capital expenditures required in order to re-commence production on
both the Torrente Vulgano and Grottavecchia Fields; (ii) the
ability of the Company to re-commence production; (iii) the price
of natural gas in Italy; (iv) the ability of the Company to comply
with certain regulatory requirements; (v) anticipated capital
expenditures required to re-commence production; (vi) the Company's
low overhead costs; (vii) the Company's ability substantially
increase its oil and gas production by the end of 2014; (viii) the
Company's ability to produce gas for industrial and retail markets
in Europe.
These statements are based on
certain assumptions and analysis 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) assumptions related to international natural gas
prices; (ii) ability to obtain regulatory approvals; (iii) costs of
construction and development; (iv) availability and cost of labour
and management resources; (v) performance of contractors and
suppliers; (vi) availability and cost of financing; (vii)
assumption the Company will continue to focus its activities
through low-risk exploration and production opportunities offering
logistical and proximate locations to refineries and pipelines and
gas ducts; and (viii) the Company's business strategy and
outlook.
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 to differ materially
from the Company's expectations. Such risks and uncertainties
include, but are not limited to, risks and uncertainties relating
to: (i) political and economic conditions in the countries in which
the Company operates or may operate; (ii) fluctuations in foreign
exchange rates and natural gas prices; (iii) the Company's ability
to access external sources of debt and equity capital; (iv) failure
to obtain any required regulatory approvals; (v) regulatory and
governmental decisions including changes to environmental
legislation; and (vi) availability and cost of labour, equipment
and management of resources.
Readers are cautioned not to place
undue reliance on this forward-looking information, which is given
as of the date hereof, and to not use such forward-looking
information for anything other than its intended purpose as actual
results could differ materially from the plans, expectations,
estimates or intentions expressed in the forward-looking
statements. Canoel undertakes no obligation to update publicly or
revise any forward-looking information, whether as a result of new
information, future events or otherwise, 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.