Canoel Announces Expansion Into Libya

Canoel International Energy Ltd. ("Canoel" or the "Company") (TSX VENTURE:CIL) is pleased to announce that it is opening a representative office in Libya and is processing the opening of a local company registered under local Libyan laws.

Canoel has identified Libya as a country in which it will in the future seek to identify opportunities to conduct business and purchase exploration or production assets.

In Africa, Canoel already owns a small stake in Mafula Energy Ltd., a Zambia registered company, which has been awarded an exploration permit.

Andrea Cattaneo, the company's CEO, states "We are excited to start a settlement into Libya. We trust that this fast developing country will be a promising area where to deploy our exploration and & production skills."

Canoel's business plan is to grow through international acquisitions and exploration and to increase the production and reserves from its international inventory of oil and gas projects.

Libya's 2012 total oil and gas revenues are expected to be $54.9 Billion US Dollars.

(source: Libyan National Oil Corporation, NOC)

Earnings from oil exports account for more than 90% of Libya's National Income.

Woodside to exit the Libyan market

According to the latest reports coming from Sydney –Australia that Woodside Petroleum Ltd will exist Libya early next year, the company said in a statement it has negotiated a sale of its onshore assets in Libya and expects to exit the country early in 2010.

On Tuesday 23rd Nov 2009, forecast its full year oil and gas production in 2010 to fall to between 70 million and 75 million barrels of oil equivalent.

Woodside is Australia's second biggest oil and gas company reiterated its 2009 output guidance of 81 million to 86 million BOE. It said its 2010 forecast excludes a 5.8 million BOE contribution from its share of the Otway gas project, offshore Victoria state, which Woodside recently agreed to sell to Origin Energy Ltd.

Woodside Petroleum has gained entry into Libya in a consortium with exploration and production sharing agreements (EPSA) with the Libyan National Oil Corporation (NOC). The agreement was signed on Sunday, 30 November 2003, in Tripoli and covers five exploration blocks in the onshore Sirte Basin in northern Libya and one in the onshore Murzuq Basin in western Libya.

The consortium was made up of operator Woodside (45 per cent), Spanish oil company Repsol (35 per cent) and Greece's Hellenic Petroleum (20 per cent). The minimum initial exploration commitment was 13 exploration wells.


Source: WSJ & Sahra Oil Consultancy Ltd

Meeting between NOC chairman & CEO of NOEX

Dr. Shukri Ghanem, chairman of Libya's NOC, met on Monday 20th April 2009 with Mr. Makoto Koseki President and CEO of NOEX, meeting was also attended by Mr. Ali Saleh NOC's General Manager, Mr. Azzam Ali Elmesallati Members of the Management Committee and Mr. Khalifa Ben Gharbia chairman of the management committee of Nippon in Libya.

During the meeting both parties discussed various subjects with regard to the mutual interests between NOC and NOEX and the progress of merger between two Nippon Oil companies. They, furthermore, discussed the exploration projects which are undergoing by Nippon Libya in which the company announced the successful completion of the seismic operation and the start of drilling in its first well on 15th April 2009.

Since the execution of the Exploration and Production Sharing Agreement in 2005 in which NOC has 92% and the remaining belongs to the Japanese company , NOEX has been conducting exploration activities in Libya, the company won, in the 2nd round, a sharing agreement onshore for Area 2 Blocks 2-1/2 and 40-3/4 about the city of Sabratha. NOEX is working with Japex Libya.

Source: NOC

Two new oil & gas discoveries in Libya

The Libyan state-owned National Oil Corporation (NOC) has reported two new oil and natural gas discoveries - one with Algerian partner Sonatrach in the Ghadames basin and the other with Spanish partners Repsol YPF SA and OMV AG in the Sirte basin.

NOC said Sonatrach made the first discovery on Block 65 in the Ghadames basin with the wildcat A1-65/02 well. The well was drilled to 9,033 ft TD about 230 km south of Tripoli, encountered both oil and gas in the Mamouniyat formation at intervals of 8,532 and 8,560 ft.
Testing of the wildcat showed oil of 48.8° gravity flowing at 1,344 b/d and gas flowing at 1.88 MMcfd through a 28/64-in. choke, NOC said.

NOC holds a 75% stake in the Block 65 license, while Sonatrach holds the remaining 25% stake, which it acquired in 2005.

NOC's second reported discovery, in the Sirte basin about 500 km east of Tripoli, was with the A1-NC202 wildcat, drilled to 15,815 ft TD in 50 m of water.

NOC said the A1-NC202 discovery found both oil and gas in the Demah formation at intervals of 4,442 and 4,484 ft. Testing of the well showed 26° gravity oil flowing at 1,264 b/d and gas flowing at 0.58 MMcfd through a 32/64-in. choke.

Repsol YPF operates the NC202 Block, which was awarded in 2003. Repsol YPF holds 21% interest, while NOC has a 65% stake, and OMV holds the remaining 14%.