In a wide ranging interview with London South East, Canadian Overseas Petroleum Limited President and CEO Arthur Millholland told us of the plans being put in place for a drilling programme at OPL 226 in the Niger Delta.
Arthur explained that much of the Autumn had been taken up with resolving issues with the Indian group Essar who hold 20% of the Nigerian licence.
"We expect the Bond to be in place in the coming weeks. The term sheet was fully accepted by the Nigerian bank last week and the paperwork will take a few more weeks." said Arthur.
"Last week our affiliate signed a letter of intent for a brand new drilling rig which is in an Asian shipyard" said Arthur.
"Remember, a drilling rig is a vessel and every five years has to be recertified. Lease a new one and no recertification costs are incurred."
Next steps are for a more binding letter of intent and then a contract which means we commit to take it to Africa.
Finally, when we spoke about working capital, Arthur accepted that the 3 Million raised will not be sufficient to take the business to drilling and testing. "We are going to have to raise additional working capital. We have options open to us other than equity. It may not be equity and for now that's what I'm going to say."
