REG - Canadian O'Seas Petr - Operations Update

Canadian Overseas PetroleumAnnouncement

06/07/2023 07:00

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RNS Number : 1780F  Canadian Overseas Petroleum Ltd  06 July 2023

Canadian Overseas Petroleum Limited Operations Update

 

London, United Kingdom; Calgary, Canada: July 6, 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.

 

Operations Update

·    Oil Production in Q2 rebounded to an average 1,250 Bbl./d, with
production for the month of June averaging 1,249 Bbl./d. Pipelining at the
Company's Barron Flats Shannon Unit ("BFSU") caused intermittent interruptions
in injection volumes and production volumes due to temporary shutdown of
certain injection wells and production wells.

·    Construction of the BFSU's $4.5 million high-pressure gas gathering
system upgrade is on target for completion this month as previously disclosed.

o  The high-pressure gas gathering pipeline system has been installed, and
tested and is awaiting the following:

Ø Delivery of the first three of eight high-working pressure
wellsite/production separation facilities required for the upgrade is
anticipated by week's end, with the balance of the units being delivered over
the following two weeks. Six of these units were fabricated in Alberta to
specifications for winter operations common in Alberta, Canada which should
mitigate the issues experienced at the BFSU during the winter of 2023.

Ø Upon installation of the wellsite/production separation facilities, the
system will be commissioned.

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

o  The well conversions have been successful as the well's production
performance has been within expectations.

o  Production downtime has been reduced significantly, with downtime in June
temporarily related to pipeline construction.

o  The Company has been conducting and evaluating different paraffin
remediation treatments and schedules to optimize production from these wells.

o  Field operating costs per produced barrel are anticipated to be reduced
due to the well conversions. This is due to significantly reduced production
downtime and related workover costs from paraffin plugging associated with
their previous flowing configuration. The Company is focused on reducing
operating costs through upgrades to its production operations.

·    The Company's Reservoir Engineer and its specialist reservoir
engineering firm are developing a revised miscible injection strategy for
commencement late in the third quarter following the upgrades to BFSU gas
gathering system and production facilities. The Company reduced miscible
injection volumes and miscible concentration in March 2022 to manage the
field's operating pressures at certain facilities and well sites. Oil
production from the BFSU is a function of injection volumes. It is the
Company's intention to resume injection volumes to a level to return to its
previous oil production peak in late 2021/early 2022 before injection volume
reduction.

Arthur Millholland, President and CEO commented: "The Company is progressing
on all fronts outlined in our last Operations Update. We are pleased that our
Gas Gathering System Upgrades are on schedule, and we were fortunate to have
been able to acquire the necessary high-pressure production equipment we
require here in Alberta which alleviated supply chain issues in the United
States. With the required upgrades to our field gas gathering system nearing
completion, we are focusing our attention on a revised injection strategy to
return the field to its designed depletion strategy which should result in a
return to the previous production peak and an increasing production profile."

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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