Canadian Overseas Petroleum Ltd Update on Disagreement (1196E)
16 October 2018 - 5:01PM
UK Regulatory
TIDMCOPL
RNS Number : 1196E
Canadian Overseas Petroleum Ltd
16 October 2018
Canadian Overseas Petroleum
Update on Disagreement between ShoreCan and Essar Mauritius
Calgary, Canada, October 16, 2018 - Canadian Overseas Petroleum
Limited ("COPL" or the "Company") (XOP: TSX-V) & (COPL: LSE),
an international oil and gas exploration and development company
focused on offshore Africa, previously disclosed in an announcement
made on 16 August 2018, that its 50% owned joint venture company,
Shoreline Canadian Overseas Petroleum Development Corporation
("ShoreCan"), is in disagreement with Essar Exploration and
Production Limited Mauritius ("Essar Mauritius") regarding
compliance under the Essar Nigeria Shareholders Agreement (the
"Shareholder Agreement").
The Shareholder Agreement governs the relationship between
ShoreCan and Essar Mauritius in respect of their interests in Essar
Exploration and Production Limited (Nigeria) ("Essar Nigeria"),
ShoreCan has an 80% interest in Essar Nigeria, which has a 100%
contracted interest in OPL226, which is located in shallow to
mid-water offshore Nigeria.
The parties have exchanged correspondence setting out their
respective positions but no formal proceedings have been issued in
respect of the dispute and no other action has been taken by either
party. The correspondence to date has only reinforced the Company's
view that ShoreCan has several valid defences and counterclaims to
any action that might be brought by Essar Mauritius in the event
that the current disagreement escalates. In the meantime, ShoreCan
continues to pursue the completion of the financing initiatives
previously announced for OPL 226 and Essar Nigeria continues to
operate as before.
Arthur Millholland, President and CEO, commented: "As previously
stated, we are frustrated with the claims being brought forward by
Essar Mauritius, but ShoreCan remains of the view that the
allegations brought forward by Essar Mauritius are without
foundation or merit. We continue to press ahead with our OPL226
project and we will provide further updates in due course."
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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