REG - Canadian O'Seas Petr - Covenant Waiver and Operations Update

Canadian Overseas PetroleumAnnouncement

01/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230301:nRSA4217Ra&default-theme=true

RNS Number : 4217R  Canadian Overseas Petroleum Ltd  01 March 2023

 

 

COPL Announces Covenant Waiver and Operations Update

London, United Kingdom; Calgary, Canada: March 1, 2023- Canadian Overseas
Petroleum Limited and its affiliates ("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, is pleased to announce that its
operating affiliate, COPL America, has received a covenant waiver ("Waiver")
from its senior lender (the "Lender") and, is also pleased to provide an
operations and oil production update.

 

Covenant Waiver

 

Further to the news release of 1 February 2023, COPL America has executed a
Waiver, with the support of its Lender, pursuant to which the measurement date
of its 28 February 2023 liquidity covenant (the "Liquidity Covenant") has been
extended to 14 March 2023.  The Liquidity Covenant will be measured based on
average cash of $2.5 million from the period, 15 January 2023 to 14 March
2023.

 

Operations Update

 

The Company has experienced several severe winter storms at its Wyoming
operations from late December to late February. High snow accumulations from
these winter storms coupled with ongoing high winds and lower than normal
temperatures have impacted the production operations at the Company's Barron
Flats Shannon Unit and it's Cole Creek field. The Company has augmented its
normal snow clearing equipment with contracted D6 sized bulldozers to keep the
field roads open daily to its production tanks. This extra equipment was
needed due to ongoing snow drifting to heights of 8-10 feet due to recurrent
high winds. Access to field production tanks has also been restricted by the
lack of snow clearing on local rural public roads due to local government
imposed low clearing priority during these winter storm events. Oil storage
capacity in the field is limited, thus production is limited when removal of
produced oil is restricted.

 

2023 Production Summary

 

·    January: 1,080 bbl./d average

·    February: 1,200 bbl./d average

·    Current: 1,400 bbl./d

·    Shut-in:

o Barron Flats Shannon Unit: 150 bbl./d

o Cole Creek: 90 bbl./d

 

Arthur Millholland, President and CEO commented: "This has been a difficult
winter in Wyoming and western North America in general. The weather we have
experienced has been well above historical averages. The interruption in our
production operations has been difficult for all of us. We conduct our field
operations with safety of our field personnel and contracted services first.
Ongoing conditions with very low temperatures, high winds and significant
drifting snow have caused the Company to suspend operations during these
storms. Those familiar with these conditions east of the Rocky Mountains in
the north-western United States and Western Canada understand the issues to
production operations and accompanying safety concerns related to field
personnel.  Most importantly our principal stakeholders understand this too,
and are working with the Company to exit this period stronger than it
entered."

 

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 and Natrona Counties Wyoming, and in sub-Saharan Africa through
its ShoreCan joint venture company in Nigeria, and independently in other
countries.

 

 

For further information, please contact:

 

Mr. Arthur Millholland, President & CEO

Mr. Ryan Gaffney, CFO

Canadian Overseas Petroleum Limited

Tel: + 1 (403) 262 5441

 

Cathy Hume

CHF Investor Relations

Tel: +1 (416) 868 1079 ext. 251

Email: cathy@chfir.com

 

Charles Goodwin

Yellow Jersey PR Limited

Tel: +44 (0) 77 4778 8221

Email: copl@yellowjerseypr.com

 

Peter Krens

Joint Broker

Equity Capital Markets, Tennyson Securities

Tel: +44 (0) 20 7186 9033

 

 

Alex Wood & Keith Dowsing

Joint Broker

Alternative Resource Capital

AW: +44 (0) 7559 910872

KD: +44 (0) 7559 910873

 

Andrew Chubb / Neil Passmore

Advisor/Joint Broker

Hannam & Partners

+44 (0) 20 7907 8500

 

 

 

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

 

 

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 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
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 information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDPPUCGPUPWPPR