TIDMCOPL
RNS Number : 3340S
Canadian Overseas Petroleum Ltd
02 October 2017
GBP2.5 million Common Share Offering
___________________________________________________________________________________
Calgary, Canada, October 2, 2017 - Canadian Overseas Petroleum
Limited (the "Company") (TSXV: XOP) (LSE: COPL), is pleased to
announce an offering of common shares in the capital of the Company
to raise gross proceeds of GBP2.5 million (the "Placing"), pursuant
to which the Company will issue 250,000,000 new common shares
("Placing Shares") to UK investors at a price of 1 penny (GBP0.01)
per Placing Share.
The Company intends to use the net proceeds of the Placing to
fund the Company's on-going general and administrative expenses
which principally covers a full technical team including
geologists, a geophysicist, reservoir engineers, a drilling
engineer and in-house counsel, which are approximately US$410,000
per month, as the Company seeks to progress its projects in West
Africa.
The Company's other financial commitments for the 12 month
period, following the publication of the Company's Prospectus
approved by the UK Listing Authority dated 8 June 2017, include 50%
of the costs relating to Shoreline Canadian Overseas Petroleum
Development Corporation's ("ShoreCan") commitment to invest funds
in the form of an interest-free shareholder loan to be used for its
80% owned Essar Exploration and Production Limited (Nigeria)
("Essar") operations. As previously announced the Company has
engaged COFARCO SAS of Paris France and Zeus Capital of London
United Kingdom to source the required funds at the project level
and is making encouraging progress towards securing funds for its
appraisal and development project at OPL 226, offshore Nigeria. The
Company remains confident that it will meet the target to drill an
appraisal well in late 2017 or early 2018 with a subsequent Early
Production Scheme being put in place shortly after.
The Placing is subject to customary conditions and the receipt
of required regulatory approvals, including the approval of the
London Stock Exchange plc ("London Stock Exchange") and the TSX
Venture Exchange (the "TSX-V"). An application is being made to the
Financial Conduct Authority ("FCA") for the Placing Shares to be
admitted to the standard listing segment of the Official List
maintained by the FCA, and to trading on the London Stock
Exchange's main market for listed securities and are expected to be
admitted to trading on 16 October 2017.
Following the issue of the Placing Shares, the Company will have
1,523,139,350 common shares in the capital of the Company (the
"Common Shares").
Arthur Millholland, President & CEO, commented: "This
Placing will strengthen our Balance Sheet while we concurrently
work towards finalising the project financing, operations program
and plan for our OPL 226 project offshore Nigeria."
About the Company:
The Company is an international oil and gas exploration and
development company focused in offshore West Africa.
The Company is actively pursuing opportunities in Nigeria in
partnership with Shoreline Energy as part of its strategy to
generate stable cash flow from secure offshore assets. The Company
and Shoreline, through their jointly held affiliated company
Shoreline Canadian Overseas Petroleum Development Corporation
("ShoreCan"), has acquired 80% of the share capital, and has taken
over the management, of Essar Exploration and Production Limited
(Nigeria) ("Essar"). Essar holds an attractive oil appraisal and
development project in shallow to mid-water offshore Nigeria on its
100% holding in OPL 226. Drilling of the first appraisal well is
planned to commence in late 2017. ShoreCan is currently waiting for
final approval from the Government of Nigeria for the
acquisition.
ShoreCan is building a portfolio of exploration and development
assets in sub-Saharan Africa. To date, ShoreCan has taken a
position in Nigeria. It continues to evaluate a variety of
additional assets in Nigeria, Mozabique and Equatorial Guinea.
The Common Shares are listed under the symbol "XOP" on the TSXV
and under the symbol "COPL" on the London Stock Exchange.
For further information, please contact:
Mr. Arthur Millholland, President
& CEO
Canadian Overseas Petroleum
Limited
Tel: + 1 (403) 262 5441
Cathy Hume
CHF Investor Relations
Tel: +1 (416) 868 1079 ext.
231
Email: cathy@chfir.com
Harriet Jackson/Charles Goodwin
Yellow Jersey PR
Tel: +44 (0) 75 4427 5882
Email: copl@yellowjerseypr.com
Broker: London Stock Exchange
Shore Capital Stockbrokers
Limited
Edward Mansfield
Phone: T: +44 20 7468 7906
This news release contains forward-looking statements. The use
of any of the words "initial, "scheduled", "can", "will", "prior
to", "estimate", "anticipate", "believe", "should", "forecast",
"future", "continue", "may", "expect", and similar expressions are
intended to identify forward-looking statements. The
forward-looking statements contained herein are based on certain
key expectations and assumptions made by the Company, including,
but not limited to, the ability to raise the necessary funding for
operations, delays or changes in plans with respect to exploration
or development projects or capital expenditures. Although the
Company believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements since the
Company can give no assurance that they will prove to be correct
since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties most of which are beyond the control of Canadian
Overseas Petroleum Ltd. For example, the uncertainty of reserve
estimates, the uncertainty of estimates and projections relating to
production, cost overruns, health and safety issues, political and
environmental risks, commodity price and exchange rate
fluctuations, changes in legislation affecting the oil and gas
industry could cause actual results to vary materially from those
expressed or implied by the forward-looking information.
Forward-looking statements contained in this news release are made
as of the date hereof and Canadian Overseas Petroleum undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither the 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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