TIDMCOPL
RNS Number : 6771D
Canadian Overseas Petroleum Ltd
21 February 2020
Canadian Overseas Petroleum Limited Annoucement
of Secured Loan Facility to Progress OPL 226 Project
Calgary, Canada, February 21, 2020 - 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, today announced it has entered into a
Promissory Note, effective 14 February 2020 (the "Issue Date"),
with Arthur Millholland, President and CEO of the Company, (the
"Holder") for a principal amount of CAD$200,000 (the "Note"). The
Note is repayable by the Company six (6) months from the Issue Date
and bears interest in Canadian Dollars at a rate of ten per cent
(10%) per annum. No payments of interest or principal amount will
be required by the Company prior to Maturity although the Company
may elect to prepay a portion or all of the outstanding principal
amount of the Note prior to that date. The Note is secured by the
Company by way of a General Security Agreement over its present and
after acquired personal property and is to be guaranteed by the
Company's subsidiaries.
-- Promissory Note agreement with Arthur Millholland, President and CEO, raising CAD$200,000
-- Immediate funds will enable the company to continue
discussions with investors and service providers with a view to
commence drilling of the first appraisal well at OPL 226 in
2020
Arthur Millholland, President and CEO, commented : "This loan,
which reflects my confidence in the company, will generate the
necessary funds so we can conclude the additional financing
measures needed to commence appraisal drilling of OPL 226 within
our targeted timeframe of 2020. Together with our joint venture
partner we continue to be focused on concluding the placement of
the OPL 226 Performance Bond by our Nigerian affiliate and
progressing the operational plan for the commencement of
operations."
The Company intends to use the net proceeds of the Loan Facility
for general working capital and primarily for the progression of
its development and financing plans for the OPL 226 project.
The Company is currently in discussions with strategic investors
as well as global service providers to secure financing for the
placement of the OPL 226 Performance Bond and for the provision of
services for the early production scheme and other project
financing costs.
COPL plans to drill the first appraisal well at OPL 226 during
2020, subject to financing and regulatory approvals, and place it
in production through an Extended Well Test ("EWT") utilising an
Early Production System ("EPS"). This is intended to be followed by
the drilling of two to three additional similar wells on the
prolific NOA Structure. This phase of the project would precede a
full field development plan, to be implemented following OML
conversion.
The Company's key asset is OPL 226 offshore Nigeria held by its
Nigerian affiliate. COPL's current intention is to eventually bring
three to four appraisal wells at OPL 226 onto production at a
forecast rate of 6-10,000 bpd per well.
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 2020. 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 5th Licensing Round
adjacent to the producing Pande-Temane Gas and light oil field
complex.
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
Charles Goodwin
Yellow Jersey PR Limited
Tel: +44 (0) 20 3004 9512
Email: copl@yellowjerseypr.com
Damon Heath
Shard Capital Partners LLP
Tel: +44 (0) 20 7186 9952
The Common Shares are listed under the symbol "XOP" on the CSE
and under the symbol "COPL" on the London Stock Exchange.
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
continued 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 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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