Calgary, Alberta / ACCESSWIRE / March 18, 2014
/ Canoel International Energy Ltd.
("Canoel" or
the "Company")
(TSX VENTURE: CIL) is pleased to report that its 100% owned Italian
subsidiary, Canoel Italia Srl., has recently completed maintenance
operations and improvements of facilities at its San Teodoro Field.
As a result, commencement of production is anticipated for late
April 2014.
San Teodoro
Field
Historical
production rates between 1991 and 1993 were reported at 8,500 cubic
meters per day (300 mcf/d or 50 boed), with natural gas being
delivered to the Metaponto gas treatment plant. The
original gas in place was estimated to be about 37million cubic
meters (1,306 mmcf), with a recovery factor of 21.2%. The original
P1UD (Proven Undeveloped) reserves estimate from the MP-1/B1-2
sandstone units appear to be conservative. In view of the recent
refurbishing of facilities and the expectation that the final
authorization to re-commence production will be granted shortly,
the Company believes that the reserve classification will change
from P1UD to P1D (Proven Developed).
As a result of
studies carried out on this field in 2009-2011, the Company also
believes that P2 reserves relating to the MP-1/B1-2 sandstone units
can be increased by 1.8 million stm3. The P2 probable
reserves relating to a different sandstone unit (the MP-2/A
horizon), which could be produced after a future workover, have not
been changed.
Production is
expected to start at 5,000 cubic meters/day (176 mcf/d or 29 boed),
and this will increase Canoel's existing production base and cash
flow in Italy. The additional work required to produce
the second sandstone unit (MP-2/A) is forecasted for 2017. Canoel
is also pleased to report that a new prospect (Macchia
Nuova) has been clearly defined by seismic interpretation within
two kilometers from the San Teodoro well. Internal Company estimates assign
prospective resources of 38.4 million cubic meters (1,356 mmcf) of
natural gas to this new prospect.
Canaldente
Field
The newly elected government
of the Basilicata Region has recognized that increasing natural gas
production will be a major key for economic growth. In this
respect, the regional government has prioritized the file
pertaining to the start of production of Canoel's Canaldente Field.
The Canaldente Field is estimated to contain 21 million cubic
meters of recoverable gas (approximately 742 mmcf). As previously
reported, the Canaldente field was awarded to Canoel Italia Srl by
the Economic Development Ministry after the Company successfully
presented a development plan during a technical competition of
peers.
The Canaldente Field is
expected to produce 10,000 cubic meters/day (353 mcf/d or 59 boed)
and commencement of operations is expected during the first quarter
of 2015. The field is expected to produce from two sandstone units.
The first unit was assigned a GOIP of 30 million cubic meters
(1,059 mmcf) and recoverable gas of 13.8 million cubic meters (487
mmcf), assuming a recovery factor of 46 %. The second unit (level
B) was assigned a GOIP of 20 million cubic meters (706 mmcf) and
recoverable gas of 6.7 million cubic meters (237 mmcf), assuming a
recovery factor of 33%.
We caution investors that the
above numbers and calculations for the San Teodoro and Canaldente
fields are Canoel internal estimates only and must be validated in
the forthcoming NI 51-101 report for the year ending March 31,
2014.
Canoel CEO Andrea Cattaneo
comments, "I am pleased to
observe the progress on these two additional operated properties in
Italy while, internationally, management continues to evaluate
potential acquisitions of greater scale. Our technical team
continues to prove its capacity to enhance production within Italy
and is now managing eight onshore producing fields while, at the
same time, overseeing the operations of three other non-operated
fields. Canoel's producing licenses cover 837 square kilometers
with net land holdings of 369 square kilometers (approximately
91,143 acres).
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 San Teodoro Field and Canaldente properties; (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 CEO
& President
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.
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