Mac the knife............................is back in town.......................
The pricing of this issue will not be determined until after thebooks are closed If you would like to participate, confirm your levelof interest by responding to this email with the number of units youwould like to subscribe for. Thank you.
New Issue |Canadian Overseas Petroleum Ltd (XOP.V) | Prospectus
Offering Price: To be determined in the context of the market
Last trade: 0.53
Each unit is convertible into 1.0 common shares and 0.5 warrants.
Eachwhole Warrant entitles the holder to acquire one Common Share at aprice that is equal to a 30% premium to the Offering Price
MinimumGross Proceeds: 60,000,000 CAD
Use of proceeds: The net proceeds of theOffering shall be primarily used for the Corporation's exploration andappraisal program in the UK North Sea.
Eligibility: RRSPs,RRIFs, RESPs, DPSPs and TFSAs
Jurisdictions: Allprovinces of Canada, excluding Quebec, Internationally.
ClosingDate: Dec 7, 2010
Pre financing fully-diluted shares outstanding: 30,000,000.
12%Insider ownership.
Please notethat investors will receive free-trading subscription receipts,convertible into units upon the closure of certain transactions set outin the prospectus. Funds will be held in escrow pending these "escrowrelease events". If the "escrow release events" do not occur beforeMarch 1, 2011, receipt holders will be refunded their investment, plusaccrued interest.
Highlights
-President and CEO of XOP, Mr. Arthur Millholland, was previouslypresident and CEO of Oilexco, a company that grew from $4 million to $4billion market cap in 5 years. He has assembled a management team with aproven track record of finding, appraising and developing UKCS (U.K.Continental Shelf) oil accumulations, especially Paleocene oilaccumulations trapped stratigraphically in Channel sands.
-The management team is made up of 5 former senior members of Oilexcomanagement.
- Management believes it can build abusiness similar in profile to Oilexco in 3 years while moreaggressively managing financial risk.
- Attractiveportfolio of high working interest exploration/appraisal opportunitiesfocused on light to medium gravity oil in the UK Continental Shelf. Fortechnical details on the 7 projects in the portfolio, please view the
presentation.
- Opportunities inthe portfolio are either related to or on trend with known oilaccumulations, and are well defined with seismic attributes and/orseismically defined structure
- In the UK Central NorthSea, the Company has secured the exclusive right to participate in thedrilling of the largest undrilled hydrocarbon indicated by a SeismicAmplitude Attribute Anomaly.
- Management estimates thecurrent portfolio will produce a recoverable resource between 51.3 MMBOE& 162.6 MMBOE with a 43% working interest.