REG - Canadian O'Seas Petr - Operations and Production Update

Canadian Overseas PetroleumAnnouncement

05/06/2023 07:00

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RNS Number : 6290B  Canadian Overseas Petroleum Ltd  05 June 2023

COPL Operations and Production Update

 

London, United Kingdom; Calgary, Canada: June 5, 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 give an update on
its operations and recent oil production.

 

Operations Update

·    Three conversions of BFSU flowing wells to pumping-flowing wells have
been completed;

o  Production from the first converted well in the program is up 110% from
pre-conversion levels. The well was converted in mid-April, with stable
production averaging 190 Bbl./d in the month of May, up from an average of 90
Bbl./d flowing excluding downtime periods pre-conversion.

o  The second well is producing oil above pre-conversion levels but is not
yet stable. Paraffin treatment schedules are being evaluated which are
intended to bring stability along with enhanced production levels.

§ Both of the first two wells in the program experienced significant downtime
in flowing configuration from Q3-2022 to Q2-2023 due to paraffin plugging. The
conversions accompanied with scheduled paraffin treatment programs are
intended to maximize production from these wells and eliminate production
interruptions.

o  Conversion operations on the third well were completed just days ago, with
the well returning to production on May 31.

·    Oil production is increasing from the well conversions and the
resumption of the Company's production optimization program after
weather-related disruptions in Q1-2023.

o  April 2023 average gross production: 1,170 Bbl./d

o  May 2023 average gross production:1,330 Bbl./d

o  April and May production includes production downtime as COPL America
undertakes well conversions to pumping-flowing, wellhead upgrades and paraffin
remediation treatments. Production is expected to increase from these wells
following these conversions and proactive paraffin treatments.

·    The initial phase of the second Cole Creek Unit ("CCU") recompletion
for Frontier 1 oil production has been completed;

o  The well has been perforated with oil inflow observed on perforation. The
Company is evaluating options for stimulation of the perforations, and the
timing of these, in conjunction with its JV discussions.

Arthur Millholland, President and CEO commented:

"The Company is progressing on all fronts outlined in our last Operations
Update. We are pleased with the progress on the construction of our Gas
Gathering System Upgrades and are fortunate to have been able to acquire the
necessary high-pressure production equipment we require here in Alberta,
avoiding supply chain and long lead times in the United States. The results
from our first well conversion have so far exceeded our expectations.
Production from the converted wells takes time to settle down to design and
implement a well specific paraffin treatment regime. We are active on all
fronts and will continue to update the market."

 

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 three Units: Cole Creek 100% WI, Barron Flats Shannon
(Miscible) 85% WI and the 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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