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Canadian Overseas Petroleum Ltd - junior oil and gas company focused in Sub-Saharan Africa - Agrees to acquire Atomic Oil & Gas LLC, which operates in the Powder River Basin area in Wyoming, USA, for USD54 million. Expects the acquisition to complete by January 31, 2021. This includes a USD1 million deposit, an initial debt-financed payment of USD8 million, an assumed debt of USD26 million, total additional debt and cash of USD15 million and Canadian Overseas Petroleum shares to Aromic shareholders priced at USD4 million.
Canadian Overseas Petroleum says this will be a game-changing acquisition for the company, as it will acquire as part of the sale 31.1 million barrel of oil equivalent of proved and probable reserves and two operated oil fields in Wyoming, called Barron Flats Shannon Unit and Cole Creek Unit, at the start of their 40-year life. The opportunity to acquire Atomic arose only as a result of the Covid-19 environment and the drop in oil prices during 2020, it said.
Current stock price: 0.24 pence; up 26% on Wednesday midday
Year-to-date change: up over 100%; traded at 0.07 each on December 31,2019
By Zoe Wickens; zoewickens@alliancenews.com
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