REG - Canadian O'Seas Petr - Business and Financial Performance Update

Canadian Overseas PetroleumAnnouncement

22/02/2024 07:00

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RNS Number : 0141E  Canadian Overseas Petroleum Ltd  22 February 2024

COPL Provides Business and Financial Performance Update

London, United Kingdom; Calgary, Canada: 22 February, 2024 -Canadian Overseas
Petroleum Limited ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an
international oil and gas exploration, production and development company with
production and development operations focused in Converse and Natrona
Counties, Wyoming, USA, provides a business and financial performance update.

 

On December 29, 2023, the Company announced (i) that it had entered into a
Forbearance Agreement with its Senior Credit Facility Lender, pursuant to
which the Senior Credit Facility Lender agreed not to enforce certain rights
and remedies that it might otherwise have until February 29, 2024 as a result
of the default(s) under the Senior Credit Facility (ii) an equity placing, and
(iii) the appointment of a Chief Restructuring Officer, all of which were
intended to give the Company time to consider strategic financing or sale
alternatives.

 

On January 10, 2024, the Company announced, in response to shareholder
queries, that, among other things, the Company had concluded that the value of
COPL's assets were unlikely to be sufficient to cover the claims of the
secured and unsecured creditors which then stood in excess of US$130 million
and that the Company was in a precarious financial situation relating to its
liquidity position.

 

On January 16(th) the Company closed a US$2.5m equity placing that was
designed to give the Company an opportunity to remain listed whilst it
obtained an independent technical review of the assets, including possible
near term and medium term cash flows from various different development
strategies, approach investment banks with a view to obtaining indications as
to the value of COPL's assets and seek further funding. The preliminary
results of the third party technical review have not changed the Company's
conclusions about the value of the Company's assets.

 

During this period, given its liquidity constraints, the Company has not been
acquiring any Propane or Butane for injection. The average daily production
has been for 2024 has been approximately 1,000 boe/d.  Based off the most
current cash-flow projections, the Company forecasts that its cash reserves
will be fully depleted in the first week of March 2024 and that the Company
will require additional funding to be able to continue operations beyond such
date. The Company has sought, and so far been unable to obtain, such
additional funding.

 

The Senior Credit Facility Lender has indicated that it will not extend the
forbearance period beyond February 29, 2024.  The Company continues to
consider strategic alternatives in light of the foregoing, including some form
of formal insolvency protection that may or may not leave value in the
Company's common shares.

 

 

 

.

 

About the Company:

 

COPL is an international oil and gas exploration, development and production
company actively pursuing opportunities in the United States with operations
in Converse County Wyoming.

 

For further information, please contact:

 

Mr. Tom Richardson, Chairman

Canadian Overseas Petroleum Limited

Tel: + 1 (403) 262 5441

 

Charles Goodwin

Yellow Jersey PR Limited

Tel: +44 (0) 77 4778 8221

Email: copl@yellowjerseypr.com

 

The Common Shares are listed under the symbol "XOP" on the CSE and under the
symbol "COPL" on the London Stock Exchange.

 

 

 

Caution regarding forward looking statements

 

This news release contains forward-looking statements. The use of any of the
words "initial, "scheduled", "can", "will", "prior to", "estimate",
"anticipate", "believe", "should", "forecast", "future", "continue", "may",
"expect", and similar expressions are intended to identify forward-looking
statements. The forward-looking statements contained herein are based on
certain key expectations and assumptions made by the Company, including, but
not limited to, the ability to raise the necessary funding for operations,
delays or changes in plans with respect to exploration or development projects
or capital expenditures. Although the Company believes that the expectations
and assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the forward-looking
statements since the Company can give no assurance that they will prove to be
correct since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties most of
which are beyond the control of Canadian Overseas Petroleum Ltd. For example,
the uncertainty of reserve estimates, the initiation of proceedings under the
Companies' Creditors Arrangement Act or similar legislation, the uncertainty
of estimates and projections relating to production, cost overruns, health and
safety issues, political and environmental risks, commodity price and exchange
rate fluctuations, changes in legislation affecting the oil and gas industry
could cause actual results to vary materially from those expressed or implied
by the forward-looking information.  Forward-looking statements contained in
this news release are made as of the date hereof and Canadian Overseas
Petroleum Limited undertakes no obligation to update publicly or revise any
forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.

 

This announcement has been issued by and is the sole responsibility of the
Company. No representation or warranty, express or implied, is or will be made
as to, or in relation to, and no responsibility or liability is or will be
accepted by the Company (apart from the responsibilities or liabilities that
may be imposed by the Financial Services and Markets Act 2000, or the
regulatory regime established thereunder) or by any of its affiliates or
agents as to, or in relation to, the accuracy or completeness of this
announcement or any other written or oral information made available to or
publicly available to any interested party or its advisers, and any liability
therefore is expressly disclaimed.

 

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