The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
At the end of last year, COPL had a C$1.3m deficit and entered talks with Riverfort and Yorkville Advisors in an effort to secure a £2m equity placing. It had already taken a loan from Millholland. Employees had been taking shares in the company in lieu of salary and directors had agreed to a write off of fees for 2019 and 2020. At the time COPL was also known to be in talks with unsecured creditors about converting debts into shares. The strategy seems to be paying off.
COPL had borrowed from Millholland in the form of a promissory note to the tune of C$200,000 with the note repayable by the company in six months from the issue date. The note was paying 10% a year, according to a statement from COPL.
The coming vanadium battery revolution
COPL said it would be using the cash for general working capital and the progression of development and financing plans for the OPL 226 project. The loan is being seen by investors as a major vote of confidence by the CEO in the quality of the field that COPL is going to be drilling in.
In October 2018 Nigeria’s national oil company, NNPC, granted conditional approval for a 24 month extension of a Phase 1 exploration in the block until 1 October 2020. The plan is to place an initial well at OP 226 into extended well testing, using an early production system. This is intended to be followed by drilling of two or three similar wells on the prolific NOA oil structure.
The Equity Sharing Agreement announced by the Company on April 30 with YA and RGO has been terminated by the parties by mutual consent pursuant to the terms of the Loan Agreement.
The funds received by the Company pursuant to the Loan Agreement and, if applicable, the Future Equity Funding will cover general working capital and enable the Company to continue focusing on its Nigerian OPL 226 project as disclosed on June 4, 2020.
Taken from the link which was highlighted below regarding "Loan and Equity Sharing Agreement Terminated"
Further to a RigLogix report of 26 September 2019, Chariot Oil & Gas are accelerating efforts towards monetising its major gas discovery project in Morocco. The Anchois field development project will likely consist of two subsea wells tied back to a subsea manifold. The company says that once developed, the field will be a key factor in Morocco becoming more energy self-sufficient and less reliant on the importation of oil and coal which will also help reduce the country`s carbon footprint. The Anchois discovery, made in 2009, was drilled in a water depth of 1,273` (388m) using DW semi Valaris 5006 (7,500`). A similar specification unit will most likely be required for the future wells.
Further to a RigLogix report from 5 March, Canadian Overseas Petroleum (COP) is trying to finalize a deal for $2.5 million that it hopes will keep it running until it can bring together a partnership for the development of the Noa field off Nigeria. Yorkville Advisors and Riverfort Global Opportunities had offered the $2.5m to cover general working capital as COP tries to entice full financing for the project in OPL 226 in a partnership with Shoreline. But COP is waiting for the prospectus to be cleared by UK authorities.
The 20m bbl field is in OPL 226 and COP still expects to drill an appraisal well this year. If successful, this will be placed into production through an extended well test using an early production system, likely to be a MOPU. This is intended to be followed by the drilling of two to three additional wells.
Canadian Overseas Petroleum Ltd (LON:COPL, CSE:XOP) has called legal action, called against its Nigeria joint venture ShoreCan, “merely opportunistic”. The 50% owned vehicle is in dispute with Essar Exploration & Production Limited over a Shareholders Agreement which governs the relationship between ShoreCan and Essar in respect of the Essar Nigeria business. ShoreCan owns 80% of Essar Nigeria, which in turn owns a 100% contracted interest in OPL226 (comprising shallow to mid-water offshore acreage). READ: COPL raises C$200,000 as strategic investor talks continue Essar seeks to terminate the Shareholders Agreement, inked initially in 2015, and, is claiming US$63mln in damages in in respect to historic amounts invested in Essar Nigeria for OPL 226. COPL, in a statement, noted that ShoreCan and Essar have been in dispute since August 2018 about whether the respective parties are in compliance with obligations set out in the shareholders' agreement. The London-listed partial owner in ShoreCan added that its believes, based on legal advice, that the JV vehicle has several valid defenses to the action brought by Essar and can possibly counterclaim. "We believe this legal action is merely opportunistic at this time of a global health pandemic and the associated global economic crisis,” said Arthur Millholland, COPL chief executive. “We have attempted for some time to resolve these issues with Essar Mauritius without success. We intend to defend the Essar Mauritius's legal action rigorously. “The timing of this legal action during the upheaval in the global oil markets caused by the Covid-19 pandemic speaks volumes to the quality of the OPL226 asset. “Time will tell how this plays out in Nigeria as it involves Shoreline, a prominent and well respected indigenous Nigerian shareholder."
Canadian Overseas Petroleum (LON:COPL) owns a stake in offshore Nigeria field OPL 226 COPL wants to drill a four-well programme that will cost US$120mln Talks underway with potential partners What it owns COPL’s 50% owned affiliate ShoreCan owns 80% of the share capital of Essar Nigeria. Essar Nigeria’s sole asset is a 100% interest and operatorship of OPL 226 that is located about 50 kilometres offshore in the central area of the Niger Delta. OPL 226 has an area of 1530 sq km and is situated in water depths ranging from 40m to 80m. Historically, five wells have been drilled, with the first oil discovery on the Block made in 2001 in the fifth well (Noa-1) after earlier drilling encountered predominantly gas-bearing sands. ShoreCan has completed additional seismic processing to the most recent 568 km2 3D seismic survey acquired by Essar Nigeria in 2012. How It's doing COPL's boss Arthur Millholland recently lent C$200,000 to tise it over while talks with investors and service providers continue at the OPL 226 asset. This year the company wants to start drilling an appraisal well in OPL 226. The loan will cover working capital, providing room for the OPL 226 talks to continue. Presently, the company is in talks with strategic investors with a view to securing financing to cover the performance bond and other project finance talks. What the boss says: Arthur Millholland, chief executive “The attractiveness of working offshore Nigeria is that its home to some of the best reservoirs in the world, so the economics are very good." Inflexion points Short-term finance arranged Receipt of performance bond from Nigerian bank Appraisal work starts at OPL 226 Finance partner is found and terms agreed.
I have read the latest RNS and no where can I see what you quoted " drilling finance now which is about to get approved and most likely art and kola came to London to agree and sign off" again please quote factual information
scotlouie more than you would be having a heart attack!
I fully agree with you Jiving that they ('pump & dump' merchants) do deter investors whether potential or long term holders from having proper discussions on subjects that are actual issues, the good thing is they don't seem to hang around too long.