TIDMCOPL
RNS Number : 3879U
Canadian Overseas Petroleum Ltd
29 March 2019
Canadian Overseas Petroleum
Reports 2018 Year End Results and Q1 Update
Calgary, Canada, March 29, 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, announces its results for the year
ending December 31, 2018 and an update for the first quarter,
2019.
Highlights for the year ended 2018 are as follows:
-- Secured a term sheet of up to US$50 million into the
Company's subsidiary ShoreCan from The Mauritius Commercial Bank
Limited and Trafigura.
-- Completed financing in London that raised gross proceeds of GBP3.0 million.
-- Submitted the work programme for the drilling of no less than
three appraisal wells in the NOA #1 area of key Nigeria off shore
oil asset, OPL 226.
-- COPL and its ShoreCan joint venture partner continue
discussions with potential contractors and suppliers regarding the
appraisal wells and several other wells.
-- A large international offshore service provider approached
COPL to bid for the appraisal wells. Discussions are ongoing.
-- During the fourth quarter, the NNPC granted conditional
approval of a 24-month extension for the Phase-1 PSC subject to
certain conditions including the submission of a Performance Bond
of US$7 million.
-- On track to bring four appraisal wells onto production at a
forecast initial production rate of 6-10,000 bpd per well, by the
end of 2020.
-- 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.
Q1 Update
-- The Company's Nigerian Affiliate has accepted a term sheet
from a recognized Nigerian Bank for the provision of a US$7 million
Performance Bond which will meet the principal condition of the
24-month extension of Phase 1 of the OPL 226 PSC which runs until
October 2020. Security for the Performance Bond will be provided by
COPL's affiliate ShoreCan. The Company expects the Performance Bond
to be in place to the satisfaction of the regulatory authorities in
the coming weeks, at which point activities on OPL 226 can be
commenced in earnest.
-- In March the Company's Nigerian Affiliate signed a
non-binding letter of intent with an offshore drilling contractor
for a new build high spec jack-up drilling rig. The rig is
currently undergoing testing and final inspections before its
acceptance by the contractor. Successful completion of these tests
is one of the Affiliates' conditions in moving forward in the
contracting process.
Arthur Millholland, President & CEO, commented:
"We are now well placed in the development of our strategically
important Nigerian asset as we look to commence drilling of the
appraisal wells later this year. This is a key step to enable COPL
to become a successful mid-tier oil and gas company. Over the last
year we have been focused on securing the required contracts and
regulatory approvals for OPL 226, raising the necessary funds for
the expanded and accelerated program of the asset, while at the
same time sourcing contractors and suppliers to perform the
drilling, logistics and supplies needed to enable production. We
look to the future with confidence given the imminent commencement
of operations and the recent evaluation of our Nigerian asset's
resources."
The results and associated annual regulatory filing documents,
including the Financial Statements and the Management's Discussion
and Analysis, can be viewed under the Company's name at
www.sedar.com or at the Company's website at
www.canoverseas.com.
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 mid-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 awarded an exploration license
onshore Mozambique in the 5(th) 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
Harriet Jackson/Charles Goodwin
Yellow Jersey PR Limited
Tel: +44 (0) 20 3004 9512
Email: copl@yellowjerseypr.com
Broker: London Stock Exchange
Shore Capital Stockbrokers Limited
Edward Mansfield
Phone: T: +44 20 7408 4090
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
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.
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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