REG - Canadian O'Seas Petr - Gas Gathering System Construction Progress

Canadian Overseas PetroleumAnnouncement

23/05/2023 07:30

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RNS Number : 3258A  Canadian Overseas Petroleum Ltd  23 May 2023

COPL Announces Gas Gathering System

Construction Progress

 

London, United Kingdom; Calgary, Canada: May 23, 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, announces a project construction
update for the gas gathering system ("GGS") at its Barron Flats Shannon
(Miscible) oil production Unit ("BFSU").

GGS installation progress:

·    Right-of-way access for the installation of the GGS was cleared and
crews mobilized to site in late April.

·    All 8" pipe has been delivered to site and strung alongside the right
of way.

·    Welding of pipe commenced on May 10(th) and is continuing, with 2,352
ft of 8" pipe laid and welded to date.

·    Construction is scheduled to take two to three months and Phase 1a is
budgeted at up to $4.5 million, funded by proceeds of COPL's recent
convertible bond financing. The wellsite facility upgrades in the scope of
work include installing high-pressure separators and high-pressure fire tubes
for each separator.

·    The project consists of five miles of high-pressure steel pipe routed
through the core area of the field. Phase 1a will connect seven batteries,
servicing nine wells of the 34 producing wells, which will be tied into the
high-pressure system.  The current, low-pressure gas gathering system will
continue to service the remaining BFSU wells. The system is designed to
optimally capture additional wells with increased pressures as the field
miscible flood matures.

·    COPL has also initiated well conversion programs to convert certain
high productivity oil producing wells at BFSU to flowing-pumping
configurations, in tandem with the GGS installation.

 

A map detailing the planned gas gathering system upgrades (Phase 1a and
subsequent) can be found:
https://www.canoverseas.com/wp-content/uploads/2023/05/BFSU-Infrastrusture-Phases-04.06.2023_compressed.pdf
(https://www.canoverseas.com/wp-content/uploads/2023/05/BFSU-Infrastrusture-Phases-04.06.2023_compressed.pdf)

 

Arthur Millholland, President & CEO commented:

"The GGS Phase 1a project is designed to connect our top producing wells in
the Shannon (Miscible) flood and other wells proximate to the main GGS
trunkline, alleviating pressure related issues, reducing flaring requirements
and allowing our facilities to return produced gas back to the BFSU gas
plant.  We are pleased with the progress to date which is on time and on
budget."

 

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 Wyoming.

The Company operates the Cole Creek Unit 100% WI, Barron Flats Shannon
(Miscible) Unit 85% WI and holds Barron Flats Federal (Deep) 85% WI in
addition to non-unitized lands 100% WI.

The Company's Wyoming operations are one of the most environmentally
responsible with minimal gas flaring and methane emissions combined with
electricity sourced from a neighbouring wind farm to power production
facilities.

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 (mailto:cathy@chfir.com)

 

Charles Goodwin

Yellow Jersey PR Limited

Tel: +44 (0) 77 4778 8221

Email: copl@yellowjerseypr.com (mailto:copl@yellowjerseypr.com)

 

Peter Krens

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

Advisors/Joint Brokers

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.

 

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