Member Info for ART123

Everyone keeps blasting away with all the potential here - which I can also see - but they seem to miss all of the problems.

1) the company incurred a lot of debt when acquiring this asset

2) immediately production was increased with gas injections and then the next thing we know there was no gas available so production figures dropped back to where they were before.

3) Partners CUDA mysteriously slipped into administration - not a good sign.

4) Production can be increased by laying 2 km of pipeline - but this can only be done when the CUDA administration problem has been resolved and then there might be further questions/problems depending on what happens to CUDA's assets

5) The huge oil discovery drill was fraught with problems - and could only initially flow at 100 bopd.

6) They need to refinance the debt which will no doubt come with the obligatory placing as lenders like to see the company come up with a chunk of the cash themselves - and at the current share price that will mean further dilution.

7) Without knowing the details some amount of current production is hedged at some silly low price and we are getting virtually no gain from the $100 barrel oil price. To be honest this is just bad management as the hedge needs to be reset to meet the current high oil prices.

8) If COPL does acquire CUDA's assets that will mean a lot of extra outlay, which is not good as the company can only just keep up with their costs at the moment.

9) To increase production a lot of extra wells will need to be drilled and as things are going at the moment that might mean a lot of extra cash which will mean lots of extra dilution and a very low share price.

10) Poor management with a lack of information is not helping things here, nor is the permanently low share price. Shareholders are more than a little p*ssed off.

There are probably more. I am not a long term holder here and have only held since readmission. But then before COPL acquired this asset they had nothing for all the years since the duster offshore Liberia - and fortunately I never once in all of those years ever owned any shares here. But since I have held the share price has moved in one direction alone and that is downwards. No doubt if it had moved upwards even just a little I would probably have reached my buy price and grabbed my money back and run out of the door as it's all turned out to be a bit of a disaster.

After all what could go wrong with an asset acquired when the share price was about $20 barrel and it is now $100+ barrel and after an unexpected billion barrel oil discovery right under our feet - ask Mr Millholland and no doubt he will in his unlucky way manage to find problems and more problems and the share price will keep falling and falling and falling ................

I have just emailed her again as below:

"Hi Cathy,

Just to follow up on my recent email I now see that another poster on the LSE Bulletin Board has also had a response from you. I will copy it here: "I have had a reply from Cathy regarding timelines - she emailed having spoken first to Art, The expectation is to receive CPR early May hopefully in time for 16/5 announcement. Cuda they expect to know in the next week or so."

This is just a further example of the confusion here caused by a lack of communication and information from the management of this company.

This information must be for every shareholder and released via RNS by the management and not just privately emailed to certain individuals. Shareholders are all equals and need to be treated equally.

Regards

******* ********"

"FWIW I have had a reply from Cathy regarding timelines - she emailed having spoken first to Art, The expectation is to receive CPR early May hopefully in time for 16/5 announcement. Cuda they expect to know in the next week or so."

This completely sums up the problems here. What right has she or Mr Millholland to give such information privately to a shareholder and not to all shareholders by way of an RNS.

And what please is the 16/5 announcement????????????

With regards to my post earlier today, which I will repeat below, I have now manned up and sent an email myself which is also posted below.

"Can anyone and everyone who has been in contact with Cathy Holme recently or even anytime please contact her again and request that she communicates with the COPL BOD and requests that details of the CPR are put out to the shareholders. Specifically shareholders need to know that a CPR is in progress and the approximate release date.

Thanks in advance."

My email reads as follows:

"Hi, Cathy,

As a shareholder in the above company (Canadian Overseas Petroleum Ltd) I am quite horrified by the lack of communication from the management. This is bordering on being rude and appears to have a noticeably negative effect on the share price.

I, along with many other fellow shareholders, would like to know if there is a CPR underway that will include a resource estimate for the new "Significant Oil Discovery" as announced by RNS on 10th January 2022. So far there has not been any mention of a CPR in any of the Canadian Overseas RNS's since this date.

As we all know it is very common practice for Oil and Gas exploration and production companies to commission such reports with most companies making quite a fanfare of the whole process, especially the release of such information.

If an updated CPR has been commissioned then the shareholders should and need to be informed and this must be done by Canadian Overseas Petroleum Limited by an RNS and this information must include an approximate date for its release.

As I and other members of the LSE Bulletin Board know a transcript of an apparent reply from yourself to a shareholder's email was posted at 08.22 on Wednesday 6th April during which your reply states that "Yes Ryder Scott has been working on the CPR as in order to speak about what they have they need to be able to refer to a qualified, independent report."

While this appears to answer the question of whether a CPR has been commissioned it is I'm afraid not a satisfactory way of dealing with this question as this information must come from the company themselves.

What I would request is for you to communicate with the BOD of Canadian Overseas and to request for them to issue an RNS to confirm what you have said that a CPR is underway which will include the new discovery and to give an approximate date for its release.

Rather than correspond directly with the management this is I feel a matter that should be dealt with by CHF Capital Markets in their role as Investor Relations for Canadian Overseas though if this information is not forthcoming in the near future then I will probably be forced to correspond directly with the management of the company.

Regards

******* ********"

If anyone feels like copying this and forwarding it to Investor Relations then feel free. The more requests the more likely that something will be done,

Cheers and ATB

Blaming bulletin boards for rumours and false information is nonsense. These boards only become overactive due to a shortage of information.

There is still no mention of the CPR, if it is in progress and when it may be released znd no mention of exactly when the CUDA results due.

Can anyone and everyone who has been in contact with Cathy Holme recently or even anytime please contact her again and request that she communicates with the COPL BOD and requests that details of the CPR are put out to the shareholders. Specifically shareholders need to know that a CPR is in progress and the approximate release date.

Thanks in advance.

Poor management is unfortunately the one factor that shareholders just cannot beat.

Most of the posts are quite optimistic on this board but the share price keeps slipping on lack of communication and very, very poor management. It seems to be the BOD are the only ones who can't see the potential here.

Unfortunately, this is a bad trait with so many of these listed companies these days and it seems to be that the higher the salary the less the management seems to care and the worse it gets.

Personally I hope that some other company get the CUDA assets as COPL quite clearly cannot afford the asset/holding that they have already and they certainly don't want to have to struggle to afford an enlarged asset.

So we finally have it in black and white:

"Yes RS has been working on the CPR as in order to speak about what they have they need to be able to refer to a qualified, independent report."

from Cathy Holme from CHF Investor Relations and this has resulted in a rather modest 10% share price rise.

However this should have been announced in a stand-alone RNS, giving the date when this was started and the approximate date when it is due to be released.

Each and every listed company realises the importance of CPR's, JORC's, Mineral Resource Estimates and Prospective Resource Estimates and these are very useful tools for creating shareholder value. And they are always announced as in progress with approximate release dates.

An extreme example of a Resource Estimate creating value can be found in UKOG's Horse Hill Kimmeridge asset back in 2015 after the drilling of the first well and about a year before the well was even flow tested.

On Friday 30 January 2015 UKOG announced by RNS that they had signed an alliance with a reservoir specialist, Nutech. The share price was around 0.4p at the time.

Then on 9th April 2015 the results were announced by RNS with a "Significant upgrade of the Horse Hill discovery, UK Weald Basin". The share price, which was at just over 1p the day before the announcement (which was also a considerable improvement on the 0.4p when the assessment was first announced) rose dramatically to a high of over 4.5p. So overall the Resource Estimate 10 bagged the share price with ease and this shows the importance of CPR's.

Us poor shareholders here still haven't officially been told that a CPR is in progress let alone the start and release dates. How pathetic. This is very poor management.

Maybe someone who is in contact with Ms Cathy Holme might suggest to her that she contacts the COPL BOD to request that full details of this prospective CPR, including an approximate release date, are announced properly to the shareholders via an RNS.

Start again

I liked the post by Tiburn at 19.19 yesterday which got an astonishing 33 recommendations. It was a thoroughly good post and brings up the question of what could possibly go wrong here with all this positive news to look forward to. Yet looking at the share price and the miserable performance of this share since readmission it is obvious that something is going horribly wrong.

I think the problem here is the CEO/President, whatever he calls himself. It looks like after all the years of flunking this business on AIM he has completely lost his nerve.

Any decent CEO would use the opportunity of this huge discovery to ramp up the share price, say to 50p/60p or even higher to 80p/90/. Then when the inevitable refinancing placing comes along it can be done at say 45p/50p or even 75p/80p.

Instead, it looks as if Mr Millholland is aiming to pull this off at his favourite placing price of 20p or maybe if he tries hard enough even lower at say 15p. This will mean huge dilution and further **** off the shareholders who can only see an ever-widening gap between the asset and the m/cap.

Great post though but it's just a shame that the management and the shareholders are on such a different wavelength.

I liked the post by T

Pantheon - PANR - is actually the best comparison here (rather than 88E) as PANR also have a billion barrel plus discovery which is also flowing at a modest 100 or less bopd.

Still that sort of M/Cap - £980M - is something to look forward to here in the not too distant future.................

I didn't think there was any way of closing that gap at 20p after the announcement of the billion barrel discovery but they seem to be finding a way somehow.

Personally I didn't think the results were that bad, with plenty to look forward to this year. And the share is hugely underpriced any way - at least compared to other UK market oilies operating in the USA such as 88E and PANR (with it's £980 Million valuation).

Is the share price going to rise here - or rather should it rise.

Production rates for the last Q of last year are not so important and are held up by this CUDA business anyway.

But forward plans for:

"The Company intends to commence initial delineation of the discovery later this year with horizontal wells from 16 drilling locations, for which permitting is underway.

o COPL's operating affiliate, Southwestern Production Corp, is in the process of securing a drilling rig for the delineation drilling program and the planned drilling program of 8 additional production wells and 1 injection well at its producing Barron Flats Shannon Field."

is hugely important.

What is Operating Netback?
Operating netback is a measure used in the oil and gas industry to reflect the net profit on oil and gas after royalties, production, and transportation expenses.

How Does Operating Netback Work?
The formula for operating netback is:

Operating Netback = Price - Royalties - Production - Transportation

Let's assume that Company XYZ drills for oil in the Gulf of Mexico. For every barrel of oil it sells, it must pay $5 in royalties, $5 in production costs, and $10 in transportation costs. A barrel of oil sells for $100. Using the formula above, Company XYZ's operating netback is:

Operating Netback = $100 - $5 -$5 - $10 = $80

The route to production is very fast here - at least compared to most of these large discoveries.

I'm just surprised that COPL and partners don't find a major to fund all the drilling for say a 25% stake as that would be a much faster way to proceed - and a much quicker way to create a higher share price and shareholder value.

"The Company intends to commence initial delineation of the discovery later this year with horizontal wells from 16 drilling locations, for which permitting is underway."

Couple this with:

"We estimate the Frontier element of the discovery to cover an area of approximately 51 square miles with the capacity of up to three horizontal wells per square mile each initially producing 1,000 - 3,000 barrels per day."

and that's a lot of production...................

That's a lot of drills planned for this year!!!!

· The Frontier element of the find covers approximately 61 sq. miles, with 90% of the defined resource on the Company's lands.

o The Company intends to commence initial delineation of the discovery later this year with horizontal wells from 16 drilling locations, for which permitting is underway.

I'd be looking for 10% everyday this week - and more next week.

Lots of trades going through with not a lot of shares in free float.

Just a shame there are no long term posters here.