TIDMCOPL
RNS Number : 2216A
Canadian Overseas Petroleum Ltd
28 May 2019
Not for dissemination in the United States. Any failure to
comply with this restriction may constitute a violation of U.S.
Securities laws.
Canadian Overseas Petroleum Limited (CSE: XOP, LSE: COPL),
Placing
London, United Kingdom and Calgary, Canada, May 28, 2019 -
Canadian Overseas Petroleum Limited ("COPL" or the "Company") (XOP:
CSE) & (COPL: LSE), an international oil and gas exploration
and development company focused on sub-Sahara Africa, is pleased to
announce the completion of placing by Shard Capital Partners LLP to
raise gross proceeds of GBP497,000 (the "Placing"), pursuant to
which the Company will issue 497,000,000 new common shares
("Placing Shares") at a price of 0.1 pence per Placing Share.
The Company intends to use the net proceeds of the Placing to
fund its on-going general and administrative expenses thereby
allowing it to progress development and financing plans underway
for the OPL 226 project.
The Company's key asset is OPL 226 offshore Nigeria held by its
Nigerian affiliate. COPL expects to bring three to four appraisal
wells at OPL 226 onto production at a forecast rate of 6-10,000 bpd
per well by the end of 2020.
Early Production Scheme in 2019
COPL expects to drill the first appraisal well at OPL 226 by
late 2019, subject to regulatory approvals, and place it in
production through an Extended Well Test ("EWT") utilising an Early
Production System ("EPS"). This will be followed by the drilling of
two to three additional similar wells on the prolific NOA Structure
- all set to come on-stream by the end of 2020. This phase of the
project would precede a full field development, after OML
conversion offering significantly higher production levels. A full
summary of the OPL 226 program was outlined in a Company
announcement dated January 28, 2019.
Completion of this phase of the program will trigger conditional
project financing arranged by ShoreCan for up to US$50 million for
OPL 226 from Trafigura and the Mauritius Commercial Bank. The
project finance is contingent on a production test delivering 6,000
bpd for 21 days and a minimum of US$20 million capital investment
by ShoreCan. The Company is currently in advanced discussions with
several global service providers regarding the provision of
services for the early production scheme and concurrently in
discussions with groups for the provision of project financing.
Netherland Sewell and Associates, Inc. ("NSAI") has evaluated
COPL's Contingent Resources and Prospective Resources on OPL 226
and produced a report as of December 31, 2018. The report, dated
March 15, 2019 was prepared under Canadian National Instrument NI
51-101. The findings highlight the inherent value in the asset and
underpin the Company's ultimate potential. A summary of the report
can be found in the Company's Annual Information Form ("AIF") dated
March 28, 2019. The complete report can be viewed under the
Company's name at www.sedar.com or on the Company's website
www.canoverseas.com.
Application has been be made for the Placing Shares to be
admitted to the Official List and to trading on the Main Market on
5 June 2019.
Arthur Millholland, President and CEO, commented: "This placing
will help ensure the Company is able to realise the significant
potential with OPL 226. As it is limited to only 20% of our current
market capitalisation, we expect to announce additional financing
measures in the coming weeks. Concurrently we are focused on
concluding the placement of the OPL 226 Performance Bond by our
Nigerian affiliate and progressing the acceptance of the jack-up
drilling rig currently under a non-binding letter of intent. As we
have previously indicated, once the Performance Bond is in place we
can commence operations in earnest."
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 Placing Shares in any
jurisdiction in which such offer, solicitation or sale may be
unlawful. The common shares 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.
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) ("Nigerian Affiliate" or the
"Affiliate"). The Company's Nigerian Affiliate has applied to the
concessionaire NNPC for formal consent to the change in control of
the Nigerian Affiliate. The Affiliate 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 2019. ShoreCan is
continuing building a portfolio of exploration and development
assets in sub-Saharan Africa. To date, ShoreCan has taken a
position in Nigeria and has been indicatively awarded an
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 CSE
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
Damon Heath
Shard Capital Partners LLP
Tel: +44 (0) 20 7186 9952
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 CSE nor its Regulation Services Provider (as that
term is defined in the policies of the CSE) 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.
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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