RNS21 Feb 2020 07:05
Calgary, Canada, February 21, 2020 - Canadian Overseas Petroleum Limited ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration and development company focused on sub-Sahara Africa, today announced it has entered into a Promissory Note, effective 14 February 2020 (the "Issue Date"), with Arthur Millholland, President and CEO of the Company, (the "Holder") for a principal amount of CAD$200,000 (the "Note"). The Note is repayable by the Company six (6) months from the Issue Date and bears interest in Canadian Dollars at a rate of ten per cent (10%) per annum. No payments of interest or principal amount will be required by the Company prior to Maturity although the Company may elect to prepay a portion or all of the outstanding principal amount of the Note prior to that date. The Note is secured by the Company by way of a General Security Agreement over its present and after acquired personal property and is to be guaranteed by the Company's subsidiaries.
· Promissory Note agreement with Arthur Millholland, President and CEO, raising CAD$200,000
· Immediate funds will enable the company to continue discussions with investors and service providers with a view to commence drilling of the first appraisal well at OPL 226 in 2020
Arthur Millholland, President and CEO, commented: "This loan, which reflects my confidence in the company, will generate the necessary funds so we can conclude the additional financing measures needed to commence appraisal drilling of OPL 226 within our targeted timeframe of 2020. Together with our joint venture partner we continue to be focused on concluding the placement of the OPL 226 Performance Bond by our Nigerian affiliate and progressing the operational plan for the commencement of operations."
The Company intends to use the net proceeds of the Loan Facility for general working capital and primarily for the progression of its development and financing plans for the OPL 226 project.
The Company is currently in discussions with strategic investors as well as global service providers to secure financing for the placement of the OPL 226 Performance Bond and for the provision of services for the early production scheme and other project financing costs.
COPL plans to drill the first appraisal well at OPL 226 during 2020, subject to financing and regulatory approvals, and place it in production through an Extended Well Test ("EWT") utilising an Early Production System ("EPS"). This is intended to be followed by the drilling of two to three additional similar wells on the prolific NOA Structure. This phase of the project would precede a full field development plan, to be implemented following OML conversion.
The Company's key asset is OPL 226 offshore Nigeria held by its Nigerian affiliate. COPL's current intention is to eventually bring three to four appraisal wells at OPL 226 onto production at a forecast rate of 6-10,000 bpd per well.
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