Canoel International Energy Ltd. 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.

Tags: Canoel International Energy Ltd