It sees the company issue new shares, priced at 0.07p each, with an initial upfront placing of £750,000.
This will be followed by an ‘equity sharing agreement’ with Riverfort whereby eight monthly subscriptions will provide a total of £300,000. Subsequently potential extensions to the agreement can unlock further tranches of funds.
The funding is significant for COPL because, as the company highlighted, it can give confidence to other investors that it will be able to execute its business plan.
COPL told investors that the funding allows the company to attract additional capital going forward, by confirming it has sufficient funding to navigate the unprecedented market conditions.
“To have secured this funding, especially during these very challenging times, reflects the company's prospects and the high quality of its principle asset,” Arthur Millholland, COPL chief executive said in a statement.
“We now have the ability to press on with discussions with relevant stakeholders and accelerate efforts to deliver the clear potential of OPL 226 by the end of 2020."
COPL expects talks with strategic investors and international service providers will resume once restrictions related to coronavirus (COVID-19) allow.
Meanwhile, the company said that its joint venture affiliate Shoreline Canadian Overseas Petroleum Development Corporation will respond to the previously announced lawsuit filed by Essar once served on its offices in Bermuda.
Operationally, meanwhile, the company noted plans to drill the first appraisal well at OPL226 during 2020 and place it in production though an extended well test and early production system, before a further programme of two or three similar wells. It anticipates between 6,000 to 10,000 bopd per well.
This initial phase of wells would come before a full field development plan.