Canadian Overseas Petroleum Limited (“COPL” or the “Company”) (XOP: TSX-V) & (COPL: LSE), an international oil and gas exploration and development company focused on offshore West Africa, today announced the filing of the third quarter ended September 30, 2017.
During the period, COPL and its partner in block LB-13, offshore Liberia, both have elected not to enter into third exploration period and accordingly, surrendered their rights to the LB-13 license, resulting in the expiration of LB-13 production sharing contract on September 25, 2017. Accordingly, the Company recognized an impairment of its exploration and evaluation assets of $15.6 million that related to Liberia project.
Subsequent to the end of Q3, the Company raised £2.5 million of additional equity in London England to strengthen COPL’s balance sheet.
Meanwhile, the Company continued to work with its investment bankers to source funds for its appraisal/development project at OPL 226, offshore Nigeria, held through COPL’s partnership with Shoreline Energy. In addition, the Company held numerous discussions with potential contractors and suppliers to drill an appraisal well in early 2018.
Arthur Millholland, President & CEO, commented:
“We continue to focus on developing our attractive oil appraisal and development project in OPL 226, offshore Nigeria. The initial work program will be to drill an appraisal well to the NOA-1 oil discovery and place it on production through an Early Production Scheme. This would be followed by the drilling of up to three additional similar wells on the NOA Structure. This phase of the project would precede a full field development. Two investment banks have been engaged to assist our subsidiary ShoreCan with the financing required to commence drilling at OPL 226. Unlike equity financings that are straightforward and fast, project financings are complex and require a lot more paperwork and legal review. We hope to update the market and our shareholders at an early opportunity.”
Source: Press Release