XOP/Exxon & Chevron drilling Liberia (off topic)
Canadian Overseas JV to drill Liberia LB-13 this year
2014-03-31 08:35 ET - News Release
Mr. Arthur Millholland reports
CANADIAN OVERSEAS PETROLEUM LTD. LONDON LISTING, PROSPECTUS OFFERING, CORPORATE AND OPERATIONAL UPDATE
Canadian Overseas Petroleum Ltd. (COPL) has provided a corporate and operational update.
London listing
COPL has today received approval from the U.K. 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 British pound sterling for gross proceeds of 2.4 million British pounds sterling.
It is anticipated that admission to trading and first day of dealings on the London Stock Exchange will occur on Friday, April 4, 2014. The prospectus relating to the London listing is available on COPL's SEDAR page and the U.K. national storage mechanism.
Proceeds from this fundraising will be used for general working capital purposes.
High-impact drilling
Liberia LB-13
COPL and its partner expect to commence 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 $120-million (U.S.) is carried by Exxon Mobil.
In addition, COPL understands, based on third party sources, that a major IOC operator has commenced a multiwell drilling program in Liberia adjacent to block LB-13. The company understands the Seadrill West Telus, has been mobilized 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 kilometres offshore Nigeria in between 100 and 400 feet of water and covers an area of 329 square 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 Corp. 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 chief executive officer of COPL, commented: "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 Venture Exchange], 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 two 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."
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