Canadian Overseas Petroleum (LON:COPL) owns a stake in offshore Nigeria field OPL 226
COPL wants to drill a four-well programme that will cost US$120mln
Talks underway with potential partners
What it owns
COPL’s 50% owned affiliate ShoreCan owns 80% of the share capital of Essar Nigeria.
Essar Nigeria’s sole asset is a 100% interest and operatorship of OPL 226 that is located about 50 kilometres offshore in the central area of the Niger Delta.
OPL 226 has an area of 1530 sq km and is situated in water depths ranging from 40m to 80m.
Historically, five wells have been drilled, with the first oil discovery on the Block made in 2001 in the fifth well (Noa-1) after earlier drilling encountered predominantly gas-bearing sands.
ShoreCan has completed additional seismic processing to the most recent 568 km2 3D seismic survey acquired by Essar Nigeria in 2012.
How It's doing
COPL's boss Arthur Millholland recently lent C$200,000 to tise it over while talks with investors and service providers continue at the OPL 226 asset.
This year the company wants to start drilling an appraisal well in OPL 226.
The loan will cover working capital, providing room for the OPL 226 talks to continue.
Presently, the company is in talks with strategic investors with a view to securing financing to cover the performance bond and other project finance talks.
What the boss says: Arthur Millholland, chief executive
“The attractiveness of working offshore Nigeria is that its home to some of the best reservoirs in the world, so the economics are very good."
- Short-term finance arranged
- Receipt of performance bond from Nigerian bank
- Appraisal work starts at OPL 226
- Finance partner is found and terms agreed