here1 Apr 2022 15:02
April 1, 2022 - Canadian Overseas Petroleum Limited ("COPL" or the "Company") (CSE: XOP) & (LSE: COPL), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona Counties, Wyoming, USA, is pleased to announce financial results for the fourth quarter 2021 and for the year ending December 31, 2021.
This has been a year of major positive change for COPL.
At the start of the financial year COPL completed the acquisition of Atomic Oil & Gas which has been transformative for the Company. COPL now operates three assets in the Powder River Basin in Wyoming which have a 40+ year reserve life and inclining oil production from gas miscible flood, with facilities built and commissioned in 2019. The assets are:
• Barron Flats Unit: (58% Working Interest)
• Cole Creek: (67% WI)
• Barron Flats Federal (Deep) Unit ("BFFDU"): (56% WI)
At the time the transaction completed the assets produced 1,100 barrels of light oil. After the implementation of a works programme by COPL, the asset has since then far exceeded original expectations and current production (gross) of approximately 1,900 barrels a day is restricted due to ongoing facility constraints. The asset has identified 2P reserves of approximately 26 million barrels (net) of light oil, before the payment of royalties.
• Of the significant acreage acquired in the Wyoming asset, only a small part is currently in production. An exploration programme is underway which has already identified:
• In January 2022, COPL confirmed a major discovery with an estimated total reservoir volume of 1.5-1.9 billion barrels of Oil in Place ("OIP"), of which 1.2 - 1.6 billion barrels of OIP underlays COPL lands.
• This highlights the potential for the Wyoming asset to generate long-term production on a scale many times greater than COPL's original expectations.
• 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.
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.
Fourth Quarter 2021 Financial Highlights:
• Net crude oil sales before royalties averaged 1,094 bbls/d as compared to 1,071 bbls/d in the third quarter of 2021, which has been limited due to facility constraints.
• Petroleum sales, net of royalties were $5.8 million offset by a $1.4 million realized loss on crude oil hedge contracts as compared to $5.2 million offset by a $0.6 million realized loss on crude oil hedge contracts in the third quarter of 2021.
• Realized a gain of $1.6 million on butane he
Sign In
Follow the stocks
