TIDMCOPL
RNS Number : 1614Y
Canadian Overseas Petroleum Ltd
17 August 2018
Canadian Overseas Petroleum
GBP3 million Common Share Offering
Calgary, Canada, August 17, 2018 - Canadian Overseas Petroleum
Limited (the "Company") (TSXV: XOP) (LSE: COPL), an international
oil and gas exploration and development company, is pleased to
announce a Common Share offering to raise gross proceeds of GBP3
million (US$ 3.8 million) (the "Placing"), pursuant to which the
Company will issue 895,523,000 new common shares ("Placing Shares")
at a price of 0.335 pence per Placing Share.
Management and certain insiders of the Company plan to subscribe
for new common shares in the Company at the Placing Price (the
"Subscription"). An announcement pertaining to the Subscription
will be released by the Company in due course.
Full details of the Placing will be included in the Prospectus
to be filed with the UK Listing Authority (the "UKLA"), which is
expected to be published prior to the end of August 2018.
Use of proceeds
As at 30 June 2018, the Company had consolidated cash balances
of US$1,736,000. The Company intends to use the net proceeds of the
Placing to fund the Company's on-going general and administrative
expenses. This principally covers a full technical team including
geologists, a geophysicist, reservoir engineers, a drilling
engineer and in-house Counsel, which are approximately US$400,000
per month, as the Company seeks to progress its projects in West
Africa.
Nigerian Development Project
The Company is continuing to progress the financing of its
Nigerian development project and is responsible for 50% of the
costs relating to Shoreline Canadian Overseas Petroleum Development
Corporation's commitment to invest funds in the form of an
interest-free shareholder loan to be used for its 80% owned Essar
Nigeria operations. In particular, to cover the near term work
programme obligations, including drilling one well under Phase-1 of
the OPL 226 Production Sharing Contract. As previously announced
the Company agreed to a project financing and offtake agreement
term sheet, providing for a minimum US$30 million to a maximum of
US$50 million Senior Secured Facility (the "Facility"). Once
entered into, the Facility will provide funding for all production
related expenditures following the drilling and testing of the
initial production well to be drilled by Essar Nigeria on its 100%
contracted interest in OPL 226.
The Placing is subject to customary conditions and the receipt
of required regulatory approvals, including the approval of the
London Stock Exchange plc (the "LSE") and the TSX Venture Exchange
(the "TSX-V"). Application will be made for the Placing Shares to
be admitted to the Official List and to trading on the Main Market,
following approval of the Prospectus by the UKLA.
Mr. Arthur Millholland, President and CEO, commented: "The
proceeds from the placing will be directed towards on-going general
expenses, which covers our qualified technical team and in-house
Counsel. In strengthening our balance sheet, we are able to
continue to focus on securing a financing package for the highly
prospective OPL 226 project offshore Nigeria. As previously
announced we are in late stage discussions with an oil service
group and we look forward to updating the market on this is due
course."
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in the United
States, nor shall there be any sale of the Common Shares and/or
Warrants in any jurisdiction in which such offer, solicitation or
sale may be unlawful. The Common Shares and Warrants have not been
and will not be registered under the 1933 Act or any U.S. state
securities laws and may not be offered or sold in the United States
absent registration under the 1933 Act or an applicable exemption
from the registration requirements of the 1933 Act and applicable
U.S. state securities laws.
Capitalised terms used in the Prospectus shall, unless the
context provides otherwise, have the same meaning in this
announcement.
About the Company:
The Company is actively pursuing opportunities in Nigeria and
sub-Saharan Africa in partnership with Shoreline Energy
International Limited ("Shoreline") as part of its strategy to
generate stable cash flow from secure offshore and onshore assets.
The Company and Shoreline, through their jointly-held affiliated
company Shoreline Canadian Overseas Petroleum Development
Corporation ("ShoreCan"), have acquired 80% of the share capital,
and have taken over the management of Essar Exploration and
Production Limited (Nigeria) ("Essar Nigeria"). ShoreCan has
applied to the concessionaire NNPC for formal consent for the
change in control of Essar Nigeria. Essar Nigeria 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 2018.
ShoreCan continues building a portfolio of exploration and
development assets in sub-Saharan Africa. To date, ShoreCan has
taken a position in Nigeria and the Company and Shoreline have been
awarded the PT-5b exploration license onshore Mozambique in the
5(th) Licensing Round adjacent to the producing Pande-Temane Gas
and light oil field complex.
The Common Shares are listed under the symbol "XOP" on the TSX-V
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 Limited
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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