Game-changing US deal transforms Canadian Overseas Petroleum into a producer
- COPL boosted by new discovery as Wyoming assets continue to exceed expectations
- COPL chief exec says production performance is extraordinary
- Canadian Overseas Petroleum Ltd wraps up a strong second quarter with new discovery
Quick facts: Canadian Overseas Petroleum Ltd
Price: 0.32 GBX
Market Cap: £50 m
About the company
COPL is an international oil and gas exploration, development and production company actively pursuing opportunities in the United States through the acquisition of Atomic Oil and Gas LLC with operations in Converse County Wyoming, and in sub-Saharan Africa through its ShoreCan joint venture company in Nigeria, and independently in other countries.
How it is doing
Gross oil production at August 31 measured 2,720 barrels of oil per day, which equates to 1,604 barrels net to COPL and represents some 123% growth from the rates at the field in April. It is up some 24% from rates measured just two weeks ago, COPL noted.
The strengthened performance comes as a result of an ongoing enhanced gas injection programme, which started on April 1 (which was also the effective date of COPL’s deal to acquire the Wyoming assets).
“Oil production will continue to increase as the surface well site production facilities are enhanced to handle the increased oil production rates and associated higher working pressures,” said chief executive Arthur Millholland.
Oil production from the assets is up some 80% measured at 2,200 barrels per day, up from 706 barrels at April 1 (the effective date of the transaction). Production volumes are expected to rise further.
Canadian Overseas Petroleum Ltd (LSE:COPL, CSE:XOP, FRA:V9LA, OTC:VELXF) shares are set to resume trading on the London Stock Exchange on Tuesday following its transformational reverse takeover of Atomic Oil & Gas.
The deal reinvents COPL as “a versatile oil and gas exploration and production and development company”, highlighted chief executive Arthur Millholland.
Insight: COPL chief exec says production performance is extraordinary
It comes after COPL shares resumed trading in London in the wake of its reverse takeover to acquire production assets in Wyoming, and, told investors that those assets are performing ahead of expectations.
What management says
Canadian Overseas Petroleum Ltd (LSE:COPL, CSE:XOP, FRA:V9LA, OTC:VELXF) (COPL) chief executive Arthur Millholland joined Proactive’s Stephen Gunnion with details of the company’s second-quarter results and an operations update.
Millholland telling Proactive that its Wyoming assets continue to perform well beyond COPL’s initial expectations, with crude oil production increasing 123% since April 1, 2021. The company has also announced an oil discovery at its 100% owned Barron Flats Federal unit.
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