REG - Canadian O'Seas Petr - Q2 Results & Gas Gathering System Completion

Canadian Overseas PetroleumAnnouncement

15/08/2023 07:00

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RNS Number : 2915J  Canadian Overseas Petroleum Ltd  15 August 2023

COPL Announces Q2-2023 Financial Results & Gas Gathering System Completion

 

London, United Kingdom; Calgary, Canada: August 15, 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 the publication of its
Financial Statements and Management Discussion and Analysis for the three and
six months ended June 30, 2023.

Second Quarter 2023 Operational and Financial Highlights:

·   The Company commenced upgrading its gas gathering system in the second
quarter to debottleneck restrictions at certain well locations, to recover
produced gas back to the gas plant and to reduce gas flaring.   COPL is
pleased to announce that the gas gathering system is functioning and was
commissioned on time and under budget in July 2023.

·    The Company interest crude oil sales before royalties averaged 1,103
bbls/d as compared to 974 bbls/d in the first quarter of 2023.

·    Petroleum sales, net of royalties were $5.6 million as compared to
$5.2 million in the first quarter of 2023. The increase is due mainly to the
increase in oil production partially offset by a reduction in the realized
sales price of oil of $71.75/bbl as compared to $74.94/bbl in the first
quarter of 2023.

·    The Company incurred a realized hedging gain of $0.1 million on
butane hedge contracts as compared to $0.5 million in the first quarter of
2023. The Company had no crude oil hedge swap contracts in place in the first
half of 2023 due to a hedge restructuring in December 2022. The butane hedges
were put in place to protect the liquid purchases required for the miscible
flood injection program.

·    The operating netback was $20.93/bbl, before the net realized gain on
butane hedge contracts as compared to $17.19/bbl, in the first quarter of
2023. The increase is due mainly to the reduction in operating expenses of
$6.98/bbl in the second quarter of 2023, partially offset by the decrease in
the realized sales price of oil in the current quarter.

·    The Company initiated several G&A reductions in the quarter as
costs were $1.9 million as compared to $2.3 million in the first quarter of
2023.  The Company intends to implement further cost savings in the third and
fourth quarters of 2023.

·    A cash position of $5.2 million as at June 30, 2023 as compared to
$4.0 million as at December 31, 2022.

 

The Financial Statements and the Management's Discussion and Analysis as at
and for the quarter ending June 30, 2023, can be viewed under the Company's
profile at www.sedarplus.ca (http://www.sedarplus.ca) or at the Company's
website at www.canoverseas.com (http://www.canoverseas.com) . The Company
encourages interested parties to read the Management's Discussion and Analysis
along with the Financial Statements and accompanying notes.

 

Convertible Bonds and Issued Share Capital:

The Company will issue 2,447,980 common shares ("Shares") on 17 August 2023
pursuant to the conversion of one 2028 Bond ($0.2 million principal).
Following this bond conversion, the Company's outstanding Bonds include:

 

2027 Bonds principal outstanding: $12.4 million (62 bonds)

2027 Bondholders: 4

 

2028 Bonds principal outstanding: $13.0 million (65 bonds)

2027 Bondholders: 3

 

Following this issuance of Shares, the Company has a total of 698,988,888
common shares issued and outstanding. There are no common shares held in
treasury and therefore the total number of voting rights in the Company is
698,988,888. This figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest in, the
share capital of the Company under the Financial Conduct Authority's
Disclosure Guidance and Transparency Rules.

 

Applications will be made for the Shares to be admitted to the FCA's Official
List and to trading on the London Stock Exchange's main market for listed
securities within the next twelve months, in accordance with Listing Rule
14.3.4.

 

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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