TIDMCOPL
RNS Number : 4694Z
Canadian Overseas Petroleum Ltd
15 December 2017
Canadian Overseas Petroleum
Mozambique license awarded and Nigeria update
Calgary, Canada, December 15., 2017 - Canadian Overseas
Petroleum Limited ("COPL" or the "Company") (XOP: TSX-V) &
(COPL: LSE), an international oil and gas exploration and
development company, announces that through its 50% owned
subsidiary ShoreCan, COPL has been advised by the Government of
Mozambique that its bidding consortium, described below, has been
awarded onshore Block PT5-B in the 5th Licensing Round (the
"Block").
ShoreCan, the jointly held subsidiary of COPL and Shoreline
Energy International, holds a 57% interest in the consortium and is
the operator. The other constituents are: Bluegreen (23%), Indico
Dourado (10%) and ENH (carried 10%) (together the
"Consortium").
PT5-B is located on the Mozambique coastal plain, 750 km north
of the capital of Maputo. The block is 4,356 sq. km in size and
surrounds the north, west, and southwest margins of the Pande Gas
Field, half of the Pande-Temane Gas field complex which has
reported gas reserves of 2.6 TCF and production in 2016 of 475
mmcf/d. The gas is primarily exported by pipeline to South Africa.
In February 2017, Sasoil the operator of the Pande-Temane gas
complex announced a light oil discovery and the construction of a
crude oil and LPG processing facility in an adjacent area to the
east called Inhassoro. The Company believes the Block is
prospective for light oil and gas in the productive zones at Pande,
Temane and Inhassoro as well as deeper horizons.
The Consortium has been invited to negotiate with the Government
of Mozambique the terms of the production sharing contract
governing the Block in the first quarter of 2018. These will
include the acquisition of 1600 line km of 2D seismic. COPL
believes the Block offers potential for additional gas and light
oil resources based on its review of the historic 2D seismic data
base.
Nigeria
With regard to OPL 226, offshore Nigeria, COPL notes that Essar
Nigeria, which is 80% owned by ShoreCan, is in the final stage of
being granted ministerial consent for the Essar acquisition, and
has applied for an extension to the first phase of the Production
Sharing Contract ("PSC"). COPL can also confirm that the Company
has made further progress towards raising funds to finance the OPL
226 project. While the process of extending the PSC and raising
funds for the project has taken longer than anticipated, COPL and
its partner Shoreline continue to do all they can within their
means to achieve these milestones. The Company also notes that the
timing of the drilling campaign on OPL 226 will be delayed somewhat
due to the delay in completing the project financing and receipt of
final consent from the concessionaire NNPC for the change in
control of Essar Nigeria.
Arthur Millholland, President and CEO, commented:
"The development in Mozambique through our ShoreCan partnership
is an exciting new opportunity for COPL. While exploratory, the
on-shore block is situated in a hydrocarbon-rich area, located
close to two large producing gas fields and an oil field. COPL will
update further in due course once the terms of the production
sharing contract are agreed.
In Nigeria, Essar is in the final stage of being granted an
extension to the related PSC. Given the indigenous participation in
the project there is considerable domestic support and COPL
continues to do everything it can as a partner to finalise the
extension and project financing."
About the Company:
The Company is an international oil and gas exploration and
development company focused in offshore West Africa. The Company is
actively pursuing opportunities in Nigeria in partnership with
Shoreline Energy International Limited ("Shoreline") 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"), have acquired 80% of the share capital,
and have taken over the management, of Essar Exploration and
Production Limited (Nigeria) ("Essar Nigeria"). Essar Nigeria 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 early 2018.
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 Mozambique.
The Common Shares are listed under the symbol "XOP" on the TSXV
and under the symbol "COPL" on the London Stock Exchange.
For further information, please contact:
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
Phone: T: +44 20 7468 7906
This news release contains forward-looking statements. The use
of any of the words "initial, "scheduled", "can", "will", "prior
to", "estimate", "anticipate", "believe", "should", "forecast",
"future", "continue", "may", "expect", and similar expressions are
intended to identify forward-looking statements. The
forward-looking statements contained herein are based on certain
key expectations and assumptions made by the Company, including,
but not limited to, the ability to raise the necessary funding for
operations, delays or changes in plans with respect to exploration
or development projects or capital expenditures. Although the
Company believes that the expectations and assumptions on which the
forward-looking statements are based are reasonable, undue reliance
should not be placed on the forward-looking statements since the
Company can give no assurance that they will prove to be correct
since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties most of which are beyond the control of Canadian
Overseas Petroleum Ltd. For example, the uncertainty of reserve
estimates, the uncertainty of estimates and projections relating to
production, cost overruns, health and safety issues, political and
environmental risks, commodity price and exchange rate
fluctuations, changes in legislation affecting the oil and gas
industry could cause actual results to vary materially from those
expressed or implied by the forward-looking information.
Forward-looking statements contained in this news release are made
as of the date hereof and Canadian Overseas Petroleum undertakes no
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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