COPL starts drilling campaign and expands interest in West Africa.
- Business & Finance
Canadian Overseas Petroleum Limited, the offshore West Africa focused oil and gas exploration and development company, has provided a corporate and operational update.
COPL has received approval from the UK Listing Authority for the publication of a prospectus relating to its admission to the standard listing segment of the Official List, and to trading on the main market for listed securities of the London Stock Exchange. The Company issued 17,777,777 Common shares at a price of £0.135 for gross proceeds of £2,400,000.
It is anticipated that admission to trading and first day of dealings on the London Stock Exchange will occur on Friday 4th April 2014. The prospectus relating to the London listing is available on COPL’s SEDAR page and the UK National Storage Mechanism.
Proceeds from this fundraising will be used for general working capital purposes.
High Impact Drilling
COPL and the partner, expect to start their drilling campaign this year, as a drilling rig and support services become available. COPL was presented and has approved a budget for the comprehensive drilling campaign in 2014. As previously announced, COPL’s share of all joint venture costs and the gross drilling costs up to US$120 million is carried by Exxon Mobil.
In addition, COPL understands, based on third party sources, that a major IOC operator has start a multi-well drilling program in Liberia adjacent to Block LB-13. The company understands the Seadrill “West Telus”, has been mobilised and is in country for this drilling campaign.
Expansion of West Africa Portfolio
As part of COPL’s stated strategy to expand its interests in West Africa in order to generate stable cash flow from secure offshore assets, the Company has been assessing opportunities in Nigeria. As part of this process, the Company has evaluated assets and held talks with partners and government representatives in country.
As a result of this process, COPL has entered into a non-binding option agreement in principle relating to the potential acquisition of an interest in OPL 2010 in the Niger Delta.
OPL 2010 is located 50 km offshore Nigeria in between 100 and 400 feet of water and covers an area of 329 sq. km. To date there have been four discoveries made on the block, consisting of three oil discoveries and one gas. As part of the agreement, COPL has access to historic seismic and well data on the block.
OPL 2010 is surrounded by accessible production facilities and offshore infrastructure, with producing fields and discoveries not yet in production surrounding the block. The block was created as the result of an IOC relinquishment on commencement of production and is subject to indigenous partner tax status. There is no requirement for Nigerian National Petroleum Corporation participation.
In addition to this significant opportunity COPL continues to evaluate other offshore assets in Nigeria and is in close discussions regarding future commitments. Further updates will be proved as COPL concludes negotiations in the near future.
Arthur Millholland, President and CEO of COPL said: “We are extremely pleased to have been admitted, with a standard listing, to the Main Market of the London Stock Exchange. In addition to the TSX-V, our new listing in London will provide a series of new investors access to the COPL story. We are very encouraged by the reception we have received from the investment community in London.
“We are embarking upon high impact exploration on Block LB-13 in Liberia where we will be targeting over 2 billion barrels of prospective resources. We are very pleased to have ExxonMobil as a partner on the block. Their involvement brings COPL not only financial and technical support, but is also a strong endorsement of this acreage.
“Our entry into Nigeria through the option agreement on OPL 2010 in Nigeria is another significant step forward in the growth of COPL as we look to create a balanced portfolio encompassing stable cash flow from secure offshore assets.
“With a proven technical team in place, and a number of funding options open to us, we look forward to providing further updates on COPL’s progress over the coming months.”