Canadian Overseas Petroleum – ‘game changer’ oil producer completes near $15m financing
Some good news from the Calgary, Alberta-based Canadian Overseas Petroleum (LON:COPL) has just been announced.
From a combination of the group’s main bondholder, institutional shareholders, and new investors the company has completed its $14.8m Convertible Financing.
In the process the group issued 70.3m new warrants, while in tandem it settled off another $2.2m of debt to various creditors by issuing 26.84m new shares at a premium to the current market price.
The £20m capitalised group is engaged in the exploration, appraisal, development and production of oil and gas assets with producing assets and reserves principally in the Converse and Natrona Counties in the US state of Wyoming, where it is the operator and majority working interest owner of three oil producing units.
The company also has interests in sub-Saharan Africa through its ShoreCan joint venture in Essar Nigeria, as well as independent interests in other countries.
The ‘game changer’
Last December the group declared a ‘game changer’ at its Frontier 1 oil reservoir in Wyoming. Oil production started in January before severe winter storms impacted to slow operations.
Referring to the financing President and CEO Arthur Millholland stated that:
"This is an important raise for COPL.
After some bumpy months operationally, and in our refinancing negotiations, this raise supports the company to an intended RBL and for the capital investment required to achieve a material production uplift.
We appreciate the support of our leading investors and are excited about the deployment of this capital."
The group’s shares improved to 5.32p on the news.