Member Info for Cdnoilsupporter

I don't think I can be labelled a ramper or deramper. But I can't understand how Art thinks we can afford to do this. We had trouble raising the performance bond when we were supposedly running OPL 226. Now we are trying to acquire Atomic, and taking on debt financing, and then massive overhead, and also trying to acquire more of the US plays as well as another West African Asset? Meanwhile, if the PSC does actually extend ever, Essar will drill within 6 months of extension, and we will then be obligated to come up with 10% of historic costs to buy up to 15% interest in OPL 226. Where is all this money going to come from? Are we going to be a company with 20 billion shares out by the end of 2020? I am asking oil and gas people that post on this board to help us understand how we can possibly use the Atomic deal, which seems to be a done deal, to make this happen in a way where shareholders benefit and it isn't done with continued placings with insiders getting shares and warrants at massive discounts.

For this company to finish acquiring Atomic and maybe an asset in West Africa, we need more money. So where does it come from? And taking over Atomic isn't just revenue - we are taking on a massive amount of further overhead right? We have to pay for all the people that will be working on extracting the oil for us now. How are we going to afford all of this?

I am a bit worried that what is coming is a sale of our interest in Nigeria back to Essar. Art called it a lottery ticket in that interview - I interpret that as trying to change the optics of the value of our interest. Why diminish that unless you are planning to sell it?

If you read the summary on this acquisition, the shares are not issued until the deal closes - that will be end of January next year. The hope is OPL 226 extension granted prior to that closing date, and Essar announces a drill program, so we get some price movement before the dilution occurs.

This asset will help us pay overhead and raise monies to buy our extra 10% carried interest, if Essar proves out OPL 226.

I will watch this board, but frankly, like an earlier poster said - I don't expect a proper share price on this until we are showing positive revenues from the US assets. This share price isn't going to make sense until end of Q2 or early Q3 next year.

GLTA

seems like some glitching - Art is answering some emails he is getting. Art is in London UK right now .

You can mail a question to agm@canoverseas.com - they will try to address it in the informal session - that is where Art will be expected to give us an update on operations status, once the meeting is closed.

Well it will be an interesting AGM if no news in advance of it. I expect all of you will try to attend via audio attendance ?

The best thing that could happen to us is that Essar finally gets this drilled, and some big company buys out our maximum 15% interest, probably Essar, giving us an exit opportunity. I think experience shows that our management team clearly bit off way more than it could chew in trying to take this massive play over from Essar. We wasted YEARS paying salaries for staff to ultimately give it back to Essar in a settlement. We have received ZERO value from this company for it having held this interest for so many years. This company has been around for many years, and has provided absolutely no value or revenue. Think about that. AM and other employees proclaimed to have "expertise" have taken salaries for a decade and we have nothing of value to show for their work. ZERO revenue. GLTA.

This AGM will have a call in feature . For brits that want to listen in.

Okay Charlie, the website for COPL has the presentation on the OPL 226 play, it identifies the 3 potential resource prospects, and how they would be drilled. So under each of the 3 scenarios - with the current oil price - what do you see as our production cost per barrel for the type of drilling this will require - and then what are the royalties - so we know the net profit per barrel under each of the 3 scenarios. Then we can look at either 5 or 15% of that to our benefit. I would understand the first well program is to be 4 wells. also presuming the first shows commercially viable oil can be extracted. So once we go to proven resources - what is our cash flow? Where does it take our market cap?

For this company to have 10 pence shares, it would need a market cap of $774 million USD. I just don't see that math if we are going to be a 15% owner of what could be a huge commercial field that will take a number of years to develop. But I would love to be proven wrong.

Caw Caw, I think Art has a hard time abiding by the direction that he has to stop promoting . He can't give a prediction and then later claim he had no control over it. He refuses to explain a missed prediction. That came up in a past AGM when he used to have them.
Asmalik - so then on its own, Nigeria is worth something less. I guess what I am trying to understand is that if nothing else changes for the company, what should our market cap be if the first drill proves commercially viable resources are there to be extracted? Once we know that, we will know what our share price should be. I am trying to understand our near term potential.

Caw caw, I am not arguing that in the past Art made promises about deadlines - I am saying that as much as I read about the extension - all Art said was it would happen, but never said when. He explained that as no notice was received that it would not be extended, that lack of notice meant that the PSC had to be extended. So at least on this, he never made a promise of a date.

Holstb - with the tax structure in place and because our indigenous partner is only a 15% maximum player, so I don't think we get preferred royalty rates, a 10 pence valuation would mean this company would have to be valued at 600 million pounds or so. How do you see us getting that valuation with a 15% interest? I am asking seriously, as I don't understand what 15% of this field translates to here.

Hawkes, I agree with your assessment. Art isn't going to issue a press release saying he doesn't control the government approval process and he won't guarantee a delivery date. But the press release said it is coming. So Art has told us - the extension is coming but I can't tell you when. There is a lot of reason to be frustrated with this company, but not about when the Nigerian government will issue an extension. It will come when it comes and that will allow Essar to start announcing steps toward a drill.

I read your board a lot - but I think this is a stock that will have some wild price fluctuations in a lead up to a drill in about June of 2021. GLTA

It is a bit gutting to see that for the stock to rally, we have to watch the company give itself hundreds of millions of options to dole out to insiders. We have to take it as good news that the company seems to be diluting us to ensure a fairly big piece of any future benefit can be sliced off for the chosen few. We take that as a good sign that something is going to happen because the company seems to be granting options to allow the insiders to benefit in a future uptick in share price. I pray that Essar drills before we are committed to another project way too big for us to handle. GLTA

typo there- shoreline will now own 15% max of this play whereas before they had 40% - so do we still qualify for indigenous status and better royalties?

Anybody left here should be people that believe the PSC extension will eventually be granted and Essar will eventually drill. And as none of us have crystal balls, we are not willing to try to time the market to get out and back in before news. So I have a question for those with some knowledge here - does the revised revenue sharing deal with Essar still qualify this for indigenous involvement and the better royalty rates? I saw a lot of stuff posted by a certain deramper suggesting that basically 95% of the net revenues of this play are taxes, but that makes no sense. But before, Shoreline had Shorecan owning 40% and now they top out at 15%. So do we still get better royalty treatment with Shoreline at 15% and not 40%?

And taking royalties into consideration, what is the net profit here if the gross profit were $15 a barrel to produce this if it proves successful and commercial? Of that $15 - how much goes to tax, and then I presume we get 5 or 15% of it. So what are the numbers? Does anybody with technical experience in this industry, hopefully with offshore Nigeria, know what this means for us ? Using a model of $15 gross profit on producing the oil. Just so I can get a sense of our potential value here going forward. And I apologize if my question frames things incorrectly. I just want to hear from the oil and gas experienced investors on what this could mean for us.

We were clearly in a deal way beyond our means to begin with here with OPL 226. COPL should keep costs down, figure out how it will raise the $6 million to buy our extra 10% interest, if the wells prove out, and then build up some cash before committing to something again. I would hate to see COPL committing us to another massive deal that we cannot afford to do, before long term shareholders can be rewarded for our patience on a rerate with OPL being drilled and proven out. Lets do that first before anything else.

I don't know why anybody thinks this extension will happen so fast. Am I wrong here but didn't we already get an extension because of Ebola a couple years ago? That took a long time to get, but we got it. And we originally were applying for a one well test program and we were told another reason for delay was Nigeria requested a 4 well commitment? Which we agreed to do. And why would anybody agree to 4 wells if there wasn't a tremendous amount of confidence that this will prove out? And I am not naming names, but stop feeding trolls by responding to them or their posts. Plain and simple, anybody posting here arguing that the asset is not viable has a motive. Those of us here may be proven wrong to trust this asset and the ability of Essar and ShoreCan to get it done. But when you look at the history of what is going on here, common sense tells me that I have reason to be frustrated with some things that have occurred, but this will get extended and drilled eventually. Art has promised a lot of things and missed his deadlines, but he never promised a drill in 2020 AFTER the announcement of the new deal with Essar. He had promised it a lot of times in the past, but clearly Essar kept derailing that from going ahead. Now that issue is behind us- I think we can expect a drill in Q1 of 2021. Nothing much is going to happen with this stock until then. What we will get in 2020 is news of the extension and its terms. That might not occur before September 30, but it will happen.

Frankly, I am more interested in hearing how Art intends to raise the 6 million dollars (USD) to buy up our interest to 15%. It takes time to arrange that via financing, which I would vastly prefer over another raise. So for once, time is our friend.

GLTA

Every long term shareholder can give you examples of a number of times that COPL has missed a promised deadline. And COPL doesn't seem to feel like it has any obligation to explain the delay. So if you are in this stock, you need to accept that risk.

I have said this before - this won't be drilled in 2020. That shouldn't be news to anybody that has researched this stock. But it will be drilled in 2021. So this shouldn't be share price changing news to anybody. And it shouldn't be a shock that creditors that took stock at .07 and .30 pence might be selling to clear their debts. The price will move for awhile. We can't expect a proper rerate until Essar Nigeria actually drills, and Art discloses how exactly we are buying out our share of historical costs to get us to 15% if this is a gusher. What is also unclear still is the royalty structure here, and so what value our 15% will represent, if this proves to be a great field, because we have an indigenous partner to minimize the royalties. And before royalties get paid - don't we get to reclaim costs? So I would expect that we could claim and recoup a fair amount of costs to the benefit of COPL when this proves out? Anybody with knowledge - can you weigh in how cost recoup and royalties work when we have an indigenous partner? If we can see the potential value of 5 or 15% - based on current price of oil, we can maybe get a better sense of our potential value here.

The settlement of historic debt was employees taking shares for wages, and our IR people getting paid. Our outgoing CFO was paid in shares, and our incoming CFO gets shares. We just disclosed a whole bunch of warrants being exercised and now we are up to about 4.9 billion shares. Sure- it is great to see insiders taking shares, but it is at the expense of those of us that participated in financings at way higher levels. Just ask a long term shareholder in Canada what our share count was about 5 years ago. No change to our situation in that time for the shares issued, other than covering admin expenses and overhead. Meaning salaries. I am about as frustrated as Oilberta - just haven't sold yet.