Canadian Overseas Petroleum Operational Update

Canadian Overseas Petroleum Limited ("COPL" or "the Company") (TSX VENTURE:XOP),
the offshore West Africa focused oil exploration and development company, is
pleased to provide an operational update.


Highlights

Liberia



--  Block LB-13 drilling programme, in partnership with Exxon-Mobil, is
    expected to commence in late H1 2014 
--  The exploration programme is targeting P50 Prospective Resources of 2.6
    bn bbls of oil(i) 
--  As part of the farm out agreement, ExxonMobil is paying COPL's share of
    drilling cost for the first exploration well up to US$120 million of
    gross expenditures 
--  Long lead items ordered with rig confirmation pending, expected Q1 2014



New Zealand



--  COPL continues to work towards proving up the legacy asset in the
    prolific onshore East Coast Basin 
--  Geological studies including seismic reprocessing completed, fulfilling
    block work commitments 
--  2D Seismic campaign due to commence in 2014 



Business Development



--  COPL is actively looking at further opportunities in West Africa with
    near term focus on Nigeria and Angola 
--  Evaluation of offshore acreage including in-depth seismic analysis 
--  COPL has been invited to bid with several indigenous consortiums in the
    current Nigerian marginal field round 



Mr. Arthur Millholland, President and CEO of COPL commented, 

"The Company has made significant progress in the latter part of 2013 as we
continue to move forward with the drilling programme in Liberia, assess
appraisal and development opportunities in West Africa and progress towards the
2D seismic campaign in New Zealand. COPL has built a highly skilled technical
team with extensive offshore experience which we believe will stand us in good
stead as we look to broaden our portfolio. We look to 2014 with considerable
confidence and look forward to reporting further progress to shareholders." 


Liberia

The Company, in partnership with Exxon Mobile who are paying COPL's share of
costs on the first exploration well, have continued to make progress towards the
2014 exploration drilling programme on the Block LB-13 offshore Liberia. 


The location for the first exploration well has now been identified and work is
being carried out on the design and planning of the well. The Environmental
Impact Study is also underway and expected to be completed in early 2014. The
partners have also placed orders for long lead items required for the planned
exploration programme and are awaiting confirmation of rig availability. 


New Zealand

In December the operatorship of the Petroleum Exploration Permit (PEP) 53806 in
the East Coast Basin Offshore New Zealand reverted to COPL. The primary target
is a light oil resource play in the Whangai shale that is widespread throughout
the East Coast Basin, reaching thicknesses up to 600m with potential
multi-billion barrels of OOIP. The secondary target is the overlying Waipawa
shale that is only up to 70 m in thickness.


Geological studies including seismic reprocessing have recently been completed
on the block, in line with the Company's work commitments. A 2D seismic campaign
covering 223 km is currently being planned to be conducted on the acreage in
2014. 


Business Development

COPL believe that offshore West Africa is an attractive region due to the
significant oil and gas discoveries made in the past five years while remaining
underexplored because of its vast size. Whilst the Company's first priority
remains its interest offshore Liberia, the Company has been actively pursuing
other opportunities in the region. 


The Company's strategy is to use the expertise and experience of its senior
management team to grow its footprint in West Africa with a focus on prospects
which offer near term cash flow potential.


In the latter part of 2013 COPL has been actively evaluating and progressing
appraisal and development opportunities offshore Nigeria. COPL was also recently
invited to participate with indigenous partners in the upcoming oil and gas
marginal field bid round in Nigeria.


About the Company 

COPL is an international oil and gas exploration and development company
focussed in the offshore West Africa. The Company holds a 17% working interest
in Block LB-13, offshore Liberia, with ExxonMobil the operator holding an 83%
working interest. COPL is carried by ExxonMobil for its share of the first $120
million of gross drilling costs of a two well exploration programme planned for
2014. COPL also holds exploration acreage with shale oil potential on the north
island of New Zealand. 


(i)By definition of the COGC Handbook - "Prospective Resources are those
quantities of oil and gas estimated on a given date to be contained in
accumulations yet to be discovered." Further the Handbook states - Caution (per
NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the
resources will be discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of the resources."


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Canadian Overseas Petroleum Limited
Mr. Arthur Millholland
President and CEO
[phone]


Canadian Overseas Petroleum Limited
Rob Elgie
Manager of Investor Relations
[phone]
www.canoverseas.com


Bell Pottinger
Mark Antelme or Henry Lerwill
Public Relations
[phone]