Canadian Overseas Petroleum Ltd - oil and gas exploration and development company focused on offshore Africa - Announces that its 50% owned joint venture company, Shoreline CanOverseas Petroleum Development Corp Ltd, has agreed to definitive agreements for resolving its disputes with Essar Exploration & Production Ltd. ShoreCan and Essar Mauritius sign a sales and purchase agreement as well as other agreement concerning their obligations under their shareholders agreement. The settlement agreement settles Essar Mauritius's claim against ShoreCan with both parties agreeing to bear their own costs and end proceedings in the High Court of Justice of England and Wales. Sharecan is to return 70% of shares in Essar Nigeria to Essar Mauritius with Essar Mauritius to carry ShoreCan for a 10% carried interest on all costs relating to drilling of the first well up to USD5 million. ShareCan is able to increase its Essar Nigeria shareholding to 30% from 10% though payment of 20% of historic Essar Nigeria expenditures at cost through the first well drilling. Essar Nigeria's board and management team are being restructured.
Current stock price: 0.49 pence
Year-to-date change: seven times higher; share price 0.07p December 31
By Anna Farley; annafarley@alliancenews.com
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