Calgary, Canada, January 28, 2019 – Canadian Overseas Petroleum Limited (“COPL” or the “Company”) (XOP: CSE) & (COPL: LSE), an international oil and gas exploration and development company focused on offshore Africa, announces a market update for the year-ended December 31, 2018.
· Developed appraisal drilling work programme for OPL 226
· Submitted the work programme for the drilling of no less than three appraisal wells in the NOA #1 area of OPL 226
· ShoreCan accepted terms for project financing for up to US$50 million of its funding required for OPL 226 from Trafigura PTE Ltd (“Trafigura”), a global commodities trading firm, and The Mauritius Commercial Bank Limited (“MCB”), an Africa-focused commercial bankAdvanced discussions with service providers regarding the provision of services for the work programme
· Progressed discussions with the Government of Mozambique regarding terms and issuance of the Production Sharing Contract (“PSC”) governing onshore Block PT5-B awarded in the 5th Licensing Round
· Project financing for ShoreCan due to be completed by the end of Q2
· Appraisal drilling on OPL 226 scheduled for mid-year
· On track to bring four appraisal wells onto production at a forecast rate of 6-10,000 bpd by the end of 2020
· Complete negotiations and execute a PSC with the Government of Mozambique
· Complete a production acquisition
Arthur Millholland, President & CEO, commented: “We have made significant progress over the last year, having secured financing from an African-focused commercial bank and a global commodities trading firm, which will allow us to capitalise on the significant production opportunity that our offshore Nigerian asset represents. With the potential for significant near-term production at OPL 226, we are focused on ensuring this comes on stream as soon as possible, with the first production well scheduled to commence drilling by mid-2019, assuming all steps of the process are in order.