Member Info for Edgein

Well fellas Art has done it this time alright! Large acquisition for low cost and mainly debt over time. SQZ acquired the Erskine field and between the effective date of the acquisition and the completion date the asset had effectively paid for itself. Here the completion date is due around the end if next year. This is a completely transformative RNS and deal for COPL. 31mmbls of 2P and instant production.

We still have to hear what those pre-licence costs were, and it'll be interesting to see what happens when the list of marginal field winners is announced, will COPL be one? 226 news still to come too.

Well done Art, great deal, you're back in production again! Some of us were there for the start of Oilexco, great to be in on the ground floor again.

Regards,
Ed.

Cheers fellas,

Hopefully, we'll see some action on this new licence this side of Christmas. Of course the main event will still be the free movement of people in and out of Nigeria and some progress on 226 since Art suggested all parties are supportive. The recent development of Anyala is very encouraging at 60,000bopd as that's on the top of the Noa structure, we're just downdip on the same anticline. Hopefully focus the Nigerians in on what Noa and all those compartments have the potential to do. According to previous estimates about 40-60kbopd gross.

Dmagee,

I'm good for waistcoats and lampshades, but come to think about it I fancy a new pair of DMagee skin boots for Christmas. :)

Regards,
Ed.

Cheers Shaa,

I would have still been a lurker if LSE hadn't forced folks to register to read these free threads. I've been reading these threads for some time now and not posting. I'll probably not post much on here and let you guys continue on. Just noticed there wasn't a discussion about the most important line in the recent Q3 as a new project that doesn't have the complications of 226 and Moz could be a game changer especially if it brings in instant 2C or 2P.

Regards,
Ed.

Shaa,

Yes I agree. From Art's recent interview where he says they need to get all parties together in Nigeria to meet the top brass at DPR and NNPC sounds very promising for 226. I would find it unusual that Shorecan wouldn't be in the running for a marginal field licence as that would be a potentially very cheap way to gain reserves and possible near term production. Shoreline already operates a significant former Shell block and Art and his team have significant drilling and field development experience. Nigeria would be mad to turn down a bid from this jv in my opinion. I too see these as an easy hold. Hopefully they'll open up Nigeria again soon and they can get that 226 meeting sorted before end of Jan '21. I'll post the link for you on ADVFN as the link didn't show on here. Its the MD&A on the Canoverseas website.

Regards,
Ed.

Shaa,

Http://www.canoverseas.com/wp-content/uploads/2020/11/COPL-2020-Q3-MDA.pdf

Austin,

Well applicants for the marginal field bid round had to buy data reports and had to make small payments at various stages of the application process. Art has not confirmed that they applied for a marginal field, but from the quarterly report they have pre-licence costs on an anticipated new project. That just happens to tie in perfectly with the marginal field bid round. We'll find out in due course if this new project is a marginal field licence or just coincidental timing that just fits in with tbe bid round.

Regards,
Ed.

Cheers Shaa,

You also notice how they describe them as pre-licence costs rather than pre-acquisition DD also hints that the new anticipated project is a licence bid rather than a traditional asset acquisition.

Regards,
Ed.

Anticipated new project due diligence:

"Pre-license Costs Legal and due diligence costs of $36,000 incurred in respect of anticipated new project were recorded as pre-license costs for the three and nine months ended September 30, 2020 (nil in comparable periods of 2019)."

Coincidentally this coincides with the marginal field bid round.

Regards,
Ed.