COPL in Talks Over Liberian Block Acquisition

Canadian Overseas Petroleum Limited  has been informed by Peppercoast Petroleum plc (“Peppercoast”) that discussions continue with The National Oil Company of Liberia (“NOCAL”) and the Government of Liberia regarding the requisite approval for the closing of the Sale and Purchase Agreement of Block LB-13 offshore Liberia from Peppercoast to COPL.

Given the complexities involved in this process, closing of the transaction is anticipated to occur within Q3 2011 assuming the requisite approvals can be obtained. The Company had previously stated that the  transaction was expected to close on or about June 30,2011.
Block LB-13 (the “Block”) covers an area of approximately 2,400 square kilometres and is adjacent to Blocks LB-14 and LB-12 held by a supermajor oil company. The Block is governed by a Production Sharing  contract (“PSC”) having an 8 year term that commenced in May 2007. The PSC is divided into 3 phases of 4 years, 2 years and 2 years, respectively. Phase 1 was completed by Peppercoast in May of this year. Phase 2  and 3 of the PSC requires the drilling of one well per Phase.

COPL has acquired a Licence to 2,023 square kilometres of 3D seismic covering the Block, which was shot in the first quarter of 2010 to evaluate the oil potential of deep water Cretaceous sands analogous to the deep water oil discoveries offshore Ghana and Sierra Leone.

A number of drilling prospects have been identified on the Block from the interpretation of the 3D seismic by Peppercoast and the Company. These prospects  are under an ongoing technical evaluation to finalize a primary drilling location. Planning for the Phase 2 commitment well has been initiated by the Company’s Aberdeen, Scotland based drilling team.
In the UK, the drilling vessel WilPhoenix has arrived on location at the Fulla exploration prospect and is undergoing final preparations and regulatory procedures prior to drilling. This will be COPL’s first well in the UK. Wells in the Bluebell and Esperanza exploration prospects are planned for the third quarter of 2011.

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Source:COPL , July 1, 2011;