Canadian Overseas Petroleum Ltd Common Share Offering (1750G)
May 25 2017 - 1:01AM
UK Regulatory
TIDMCOPL
RNS Number : 1750G
Canadian Overseas Petroleum Ltd
25 May 2017
Canadian Overseas Petroleum Limited
Common Share Offering
Calgary, Canada, 25 May 2017- Canadian Overseas Petroleum
Limited (the "Company") (TSXV: XOP) (LSE: COPL), is pleased to
announce a Common Share offering to raise gross proceeds of GBP3.25
million (the "Placing"), pursuant to which the Company will issue
650,000,000 new common shares ("Placing Shares") at a price of 0.5
pence per Placing Share. Management, including Arthur Millholland,
President & CEO, representing approximately 3% of the existing
share capital of the Company, and certain existing shareholders,
plan to participate in the Placing for an amount approximately
equal to their proportionate current holdings in the Company.
Full details of the Placing will be included in the Prospectus
filed with the UK Listing Authority, which is expected to be
published later today and be available on SEDAR and the Company's
website, http://canoverseas.com (subject to certain access
restrictions), shortly thereafter.
The Company intends to use the net proceeds of the Placing to
fund the Company's on-going general and administrative expenses
which principally covers a full technical team including
geologists, a geophysicist, reservoir engineers, a drilling
engineer and in-house Counsel, which are approximately US$385,000
per month, as the Company seeks to progress its projects in West
Africa.
The Company's other financial commitments for the 12 month
period, following the date of the Prospectus, include 50% of the
costs relating to Shoreline Canadian Overseas Petroleum Development
Corporation's ("ShoreCan") commitment to invest funds in the form
of an interest-free shareholder loan to be used for its 80% owned
Essar Nigeria operations. In particular, to cover the near term
work programme obligations, including drilling one well under
Phase-1 of the OPL 226 Production Sharing Contract. As previously
announced the Company has engaged COFARCO SAS of Paris France and
Zeus Capital of London United Kingdom to source the required funds
at the project level.
The Placing is subject to customary conditions and the receipt
of required regulatory approvals, including the approval of the LSE
and the TSX Venture Exchange (the "TSX-V"). Application has been
made for the Placing Shares to be admitted to trading on the Main
Market and are expected to be admitted to trading on 12 June
2017.
Mr. Arthur Millholland, President and CEO commented: "The
Company is focused on securing project financing for its oil
appraisal and development project offshore Nigeria in OPL 226 held
through its 50% owned subsidiary ShoreCan's 80% shareholding in
Essar Exploration and Production Limited Nigeria. COPL provides
management and technical services to ShoreCan and Essar Nigeria.
The net proceeds of the Placing will provide the Company with
additional working capital as we look to execute on our business
plan."
"Whilst we were disappointed with the initial drill results from
the Liberian Mesurado-1 well drilled in December, we are nearing
the end of our re-interpretation of the 2,500 sq. kilometre LB-13
3D seismic data set through the incorporation of the drilling
results into an updated seismic interpretation. This involves a
reappraisal of the seismic attributes previously interpreted to be
possibly associated with hydrocarbons. Specifically, the Company is
evaluating whether the false hydrocarbon seismic response at
Mesurado-1 is a local or a regional phenomenon. This evaluation is
not one which can be accomplished in a short time, but should be
completed late Q2 to early Q3 2017. Once this is completed the next
steps regarding LB-13 will be determined."
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any securities in the United
States, nor shall there be any sale of the Units in any
jurisdiction in which such offer, solicitation or sale may be
unlawful. The Common Shares and Warrants have not been and will not
be registered under the 1933 Act or any U.S. state securities laws
and may not be offered or sold in the United States absent
registration under the 1933 Act or an applicable exemption from the
registration requirements of the 1933 Act and applicable U.S. state
securities laws.
Capitalised terms used in the Prospectus shall, unless the
context provides otherwise, have the same meaning in this
announcement.
About COPL
The Company is an international oil and gas exploration and
development company focused in offshore West Africa. The Company
holds a 17% working interest in Block LB-13, offshore Liberia, with
ExxonMobil the operator holding an 83% working interest. The
Company is also actively pursuing opportunities in Nigeria in
partnership with Shoreline Energy as part of its strategy to
generate stable cash flow from secure offshore assets. The Company
and Shoreline, through their jointly held affiliated company,
Shoreline Canadian Overseas Petroleum Development Corporation
("ShoreCan") has acquired 80% of the share capital of Essar
Exploration and Production Limited (Nigeria) which 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 in late 2017.
ShoreCan is currently waiting for final approval from the
Government of Nigeria for the acquisition.
ShoreCan is building a portfolio of exploration and development
assets in sub-Saharan Africa. To date, ShoreCan has taken a
position in Nigeria. It continues to evaluate a variety of
additional assets in Nigeria, and Equatorial Guinea.
The Common Shares are listed under the symbol "XOP" on the TSXV
and under the symbol "COPL" on the London Stock Exchange.
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) 75 4427 5882
Email: copl@yellowjerseypr.com
Broker: London Stock Exchange
Shore Capital Stockbrokers Limited
Edward Mansfield / Mark Percy
Phone: T: +44 20 7408 4090
This information is provided by RNS
The company news service from the London Stock Exchange
END
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