Cdn Overseas closes $130-million offeringCanadian Overseas Petroleum Ltd (C:XOP)
Shares Issued 23,965,935
Last Close 11/29/2010
.61
Wednesday December 01 2010 - News Release
Mr. Arthur Millholland reports
CANADIAN OVERSEAS PETROLEUM CLOSES $130 MILLION OFFERING
Canadian Overseas Petroleum Ltd. (COPL) has closed its best efforts offering of subscription receipts of the company. The Offering was for 260,000,000 Subscription Receipts at
.50 per Subscription Receipt for total gross proceeds of $130,000,000. Canaccord Genuity Corp. acted as sole agent in connection with the Offering.
The TSX Venture Exchange has approved as a new listing the Subscription Receipts under the symbol XOP.R, which will begin trading as of the opening of the markets on December 1, 2010. The transfer agent for the Subscription Receipts is Computershare Trust Company of Canada.
Each Subscription Receipt entitles the holder to one (1) common share ("Common Share") and one-half of one (0.5) common share purchase warrant (each whole warrant, a "Warrant") of COPL upon the satisfaction of certain release conditions as set out in the prospectus. Each Warrant entitles the holder to purchase one Common Share at a price of
.65 for a period up to 36 months after the closing date. The Warrants will not be listed for trading and are subject to cancellation if not exercised within 10 days of receipt of notice from COPL that the 20 day volume weighted average price of Common Shares on the TSX Venture Exchange is greater than $1.25.
Upon release, the funds from the Offering will be used to fulfill the terms of farm-in agreements in conjunction with the previously announced Letters of Intent ("LOIs") and an Exclusivity Letter made by COPL's wholly owned subsidiary, Canadian Overseas Petroleum (UK) Limited. The LOIs and the Exclusivity Letter are for farming-into exploration and appraisal properties in the UK North Sea. The LOIs and the Exclusivity Letter are subject to certain conditions precedent including financing and regulatory approvals in Canada and the UK.
For further information, please refer to the Company's Long Form Prospectus, dated November 23, 2010, which can be found at www.sedar.com under the Company's heading.
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