(Alliance News) - Canadian Overseas Petroleum Ltd on Wednesday announced a series of improvements to its financing situation, while also installing a new board chair and chief executive officer.
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 USD3.5 million equity investment from Anavio Capital Partners LLP at 4 pence per share. The stock was down 9.5% at 3.80p in London on Wednesday afternoon and is down 75% over the past 12 months.
Anavio also will receive warrants for 69.7 million shares at 4p, expiring in August 2027. Other outstanding convertible bonds and warrants will have their exercise prices changed to 4p.
Canadian Overseas said a further USD5.0 million in liquidity will be released from hedge restructuring. It also will save USD500,000 from directors agreeing to waive cash compensation in 2023. This is on top of USD2.0 million in cost saving made in the year so far.
The company also announced that Arthur Millholland will move from group CEO to president of US affiliate COPL America Inc, effective immediately. In his place, John Cowan, a company director since 2015, will become CEO, and Tom Richardson will become chair.
"COPL is entering an important new phase of extremely tight financial discipline," Richardson said. "The company now has a focussed executive team and Board aligned in their focus on delivering value for all stakeholders. We are delighted with the belief and wholly aligned support of our two most significant capital providers in the changes we are effecting."
By Tom Waite, Alliance News editor
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COPL (COPL)