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(Alliance News) - Canadian Overseas Petroleum Ltd on Friday said it raised more equity investment than expected but at a much lower price than originally planned, following a share price tumble over the past month.
Canadian Overseas is an oil and gas exploration, development and production company based in London and Calgary, Canada. It has operations in Converse and Natrona counties in the US state of Wyoming.
Canadian Overseas said it has received a USD4.0 million equity investment, all from Anavio Capital Partners LLP, at 2.6 pence per share. At the beginning of September, the company had said it would receive just USD3.5 million from Anavio, but at 4p per share.
The stock was down 1.3% at 1.93p in London on Friday afternoon and has halved since the September 6 announcement of the planned equity raise.
Anavio also will receive warrants for 126.2 million shares at 2.6p, expiring in August 2027. Other outstanding convertible bonds and warrants will have their exercise prices changed to 2.6p as well.
Additionally, Canadian Overseas said a senior debt and hedge restructuring will reduce its liabilities by USD13.5 million, while the company will have removed more than USD3 million in costs before the end of 2023. As result, it said it now is fully funded through the first quarter of 2024.
"If we can bring production back above 2,000 [barrels per day] on average for 2024, it will allow us to fully fund COPLA for the entire year," said Chief Executive Officer John Cowan, who took over the post at the start of September.
By Tom Waite, Alliance News editor
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