RE: So they DO attribute 'some' value to Cole Creek Unit13 Mar 2024 00:37
130. On July 24, 2023, the COPL Group announced that COPL America had executed a non binding letter of intent with an established energy company (the βJV Counterpartyβ) to develop
and exploit its oil reserves and resources at the CCU area. The letter of intent granted exclusivity
to the JV Counterparty for a period of time to allow for the negotiation of terms, and the structure
of the joint venture to be agreed upon. At the time it was announced, the Company was optimistic
that the potential joint venture would lead to future development, and ultimately increased
production and sales in the CCU.
131. However, on December 18, 2023, COPL announced that the JV counterparty had elected
to terminate the letter of intent and that no further discussions were planned. This was a significant
setback for the COPL Group, as reflected in the materially negative reaction of the trading price
of COPLβs common equity after the announcement. As a general matter, it will be difficult for the
COPL Group to unlock value and develop the oil reserves in the CCU without a joint venture
partner.