REG - Canadian O'Seas Petr - Update on Application to Flare Gas

Canadian Overseas PetroleumAnnouncement

14/09/2022 12:45

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RNS Number : 4730Z  Canadian Overseas Petroleum Ltd  14 September 2022

 

 

Canadian Overseas Petroleum

Update on Application to Flare Gas

London, United Kingdom; Calgary, Canada: September 14, 2022 - Canadian
Overseas Petroleum Limited ("COPL" or the "Company") (XOP: CSE) & (COPL:
LSE), an international oil and gas exploration, production and development
company with operations focused in Wyoming, USA, is pleased to provide an
update on its affiliate, Southwestern Production Corporation's (Southwestern")
application to flare additional gas volumes at its Barron Flats Shannon Unit
("BFSU") located in Converse County Wyoming.

 

Southwestern has made an application (the "Application") to the Wyoming Oil
and Gas Conservation Commission ("WOGCC") to temporarily flare additional gas
at its operated BFSU miscible flood project. The WOGGC Hearing on the
Application (the "Hearing") was scheduled for September 13, 2022.
 Southwestern has requested a continuance to the scheduled Hearing Docket in
October in response to an objection to the Application filed shortly before
the scheduled September Hearing. The objector is known to the Company as they
hold a 0.1% working interest in the BFSU as well as ownership of the surface
rights. It is Southwestern's preference to have an uncontested Hearing. As
such, it is in discussions with the objector regarding their concerns and
conditions to withdraw the objection, which the Company feels the majority of
these can reasonably be met.

 

COPL has previously disclosed the BFSU miscible flood is performing beyond its
expectations, which is also outlined in the Application. The issues facing the
Company are unexpected very high pressures on certain producing wells. These
high pressures have caused safety issues during work overs, at well site
production facilities and with the current gas gathering system in addition to
restricting oil production. Temporary gas flaring at some or all of these
wells will mitigate these issues until a field wide solution is engineered and
implemented. Gas production from one of these wells has recently been tied
directly into the gas plant to reduce the load on the gas gathering system.
Two additional wells will also be tied directly into the gas plant after
recent receipt of direct right of way consent from the objector. Once
completed these actions will mitigate the high-pressure effects on three of
the current 5 wells with the issue, and current flared gas volumes will also
be reduced.

 

As the miscible bank continues to move across the field, certain wells will
respond as simulated but some are more than likely to respond similarly to the
current wells causing the issues at hand. Thus, the Company requires
flexibility to operate with safety being paramount under ongoing "Good
Oilfield Practices".

 

Arthur Millholland, President & CEO, commented:

 

"While the delay in the Hearing is unfortunate, the Company's Application is
based on extensive and sound engineering which we look forward to presenting
to the WOGCC in October. Flaring gas is something we do not do lightly as we
own the enriched gas flared as it was purchased for the miscible flood. In
addition, we are seeing positive responses to our wax treatment program in the
field and I look forward to updating the market with results once we see some
stability. We also continue to be focused on our 2022 objectives as laid out
earlier this year."

 

Southwestern's Application and the Objection to the Application can be found
on the WOGCC website: https://wogcc.wyo.gov/ (https://wogcc.wyo.gov/) .

 

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

 

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) 7747788221

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

www.altrescap.com
(https://us-west-2.protection.sophos.com?d=altrescap.com&u=aHR0cDovL3d3dy5hbHRyZXNjYXAuY29tLw==&i=NjE3MTkwZjFlOWZkN2MxMDRiMmJjZDlk&t=dUdUb2l6NmlZbVdyQnJiRHRkRGRIN0NJbDh3Ym04ODZiU3hkRVdjU0RaZz0=&h=00028df708b54f3cb998e141d5e49985)

 

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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