Canadian Overseas Petrol... Share Discussion Threads

[smcl] 30/12/2020 08:23

Broadly agree Ed. Have 4m although sold a few recently.

[edgein] 30/12/2020 08:18

Well no pain no gain. This is proof of liquidity and if that means acquiring 31mmboe then its still every bit as game changing today as it was yesterday.

Noone can make money on COPL? Really?

This placing is slightly over twice my average price in COPL. I've an 8 figure holding and not selling a single one. US acquisition, WA EOR field and 226 all on the cards at the moment all makes these an easy hold for me at the moment. Art and his mates did want into this placing at the bottom as they'll be pretty sure of the upside on their cash from here.

Regards,
Ed.

[rolo7] 30/12/2020 08:18

How many placings now?

[2prsimo] 30/12/2020 07:51

Awful little company - why folks bother with this is beyond me

[jiving] 30/12/2020 07:43

The only people who will ever make money out of this wretched thing are Canadian insiders & BOD & management via their 10% free options.

BTW as its a "non brokered placing" who gets the: ".... finder's fee of 7.0% in common shares and 7.5% in common share purchase warrants in relation to the Placing."

[guyswonga] 30/12/2020 07:39

huge overhang

[zxie] 30/12/2020 07:29

raise gross proceeds of GBP6,000,000 (the "Placing") at a price of 0.2 pence per Unit (the "Placing Price") with each Unit consisting of one common share

[moor sir] 29/12/2020 11:11

Nice rise today

[frogyboyo] 29/12/2020 10:31

Going to be 0.20s soon!

[frogyboyo] 29/12/2020 10:01

Look at that drop. Same old COPL!!! Should have sold last market!

[phurley] 29/12/2020 09:58

Seems some progress on the licence.

[frogyboyo] 25/12/2020 08:14

You were on the drillship? Er no you were in bed talking out your ass. Bitcoin!!!! Only an utter fool would invest in that.

[edgein] 23/12/2020 16:51

Thanks to Kwizza and Dr Richard over on the SRSP board, marginal field round:



Regards,
Ed.

[edgein] 23/12/2020 16:38

Another little link for you chaps:



"The Cole Creek field is located in the western margins of the Powder River Basin about 15 miles north east of Casper in T 35 N and R 77 W. Discovered in 1935 it has produced from the Cretaceous horizons, the Shannon, Frontier, Muddy, Lakota and Dakota sandstones. This paper discusses the potential remaining in the Dakota Channel sands running across the south eastern nose of the structure. The Dakota has only been produced from two areas in the reservoir, the first being the poorer quality sands on the crest of the structure and the second being the so called channel sands on the southern nose which was partly developed because the productivity of the Dakota wells was higher in that area. It was not clear whether these channel sands are in communication with the crestal sands or whether there are several separate Dakota reservoirs around the structure. The Cole Creek field is principally a structural trap but to understand the reservoir it is important to determine to what extent stratigraphy and hydrodynamics plays a part in the Dakota trapping mechanisms."

By B. F. Tower University of Wyoming.

Regards,
Ed.

[edgein] 23/12/2020 15:38

Great timing by Art to get this asset from Atomic:



Doesn't really sound like shale oil:

Future Development Opportunities

"Cuda's Converse and Natrona County Lands contain the entire stack of oil-charged Cretaceous Sands and include multiple low-risk conventional and unconventional horizontal drilling opportunities, giving the Company a deep inventory of locations. At Cole Creek, Cuda has technically identified 48 horizontal locations in the Frontier 2 and Dakota formations which are captured in the independent Reserves Report prepared by Ryder Scott effective December 31, 2018. Cuda is planning to commence horizontal drilling at Cole Creek in 2020. Drilling opportunities exist in the Frontier, Niobrara, Mowry and Muddy formations as defined by bypassed wells on BFU Lands. Publicly disclosed well information from major industry operators within Converse County further supports the future potential for commercial development on Company Lands.2 This un-booked potential at BFU, generates significant value for the lands below the Shannon interval. Powder River Basin land values estimate to USD $3,000 per acre based on publicly disseminated sources."

If that isn't enough for you take a gander at this:



"Positioning for Growth
Portfolio of Scalable Opportunities

Wyoming – High Impact “One-off” Acquisition Delivering Low Risk Organic Growth with Visible Upside

70+ gross infill locations to be drilled over the next 3 years.

C$50/bbl netbacks at US$65 WTI

Drilling inventory delivers <1-year payouts and 125% ROR based on primary RF recovery

Gas Flood will increase the recovery factor from 10% to 15% to a potential of up to 50%

5+ deeper zones where offsetting competitors (Anadarko, Chesapeake, EOG) have licensed 10,000 locations (Wyoming Rig Count has increased from 8 to 30 in the past two years)

Proven Muddy & Frontier on land base w/ 2 vertical wells (each produced >100 Mbbls)

Recent Cole Creek Asset Acquisition offers significant Frontier 2 and Dakota horizontal upside."

Regards,
Ed.

[frogyboyo] 22/12/2020 19:00

City Analysts is Aberdeenman

[rob_swift] 22/12/2020 11:52

Excellent post City Analyst. The key, i think, lies in the cashflow from the 1 December, financing any debt, plus operational costs. As for shale thousands of small oil producers have gone bust due to uneconomical oil prices. Their as usual with oil companies, lies the risk. But if you believe that oil is not yet dead, as many do, then Art, if he has his figures right, and the oil flows as it has been predicted too, has made a great deal. I would think that David Walsh would be the owner of the minority stakes btw.
The 0.002 pence/share to cover the $4M is key also. That price could be well above 0.002 surely. So 1.5 billion shares may be much lower, especially if Nigeria is in play by Jan 31st.
So i personally, think confidence is growing in the market place, and i have increased my holding, after many years of frustration. One very important point to note which i think is under appreciated, is that the main market is far more regulated than AIM (compliance etc,). This is where Eight Capital Partners will have a vital role.
Happy Christmas all, and an even HAPPIER NEW YEAR!!!!!!

[guyswonga] 22/12/2020 10:16

could be FCAP were selling the remainder of the last placing they must nearly be clear now

[9naz] 21/12/2020 15:42

Could the Canadian tax year ending on 31/12/2020 explain some of the large selling/ seller that we have had recently.

[city analyst1] 21/12/2020 14:05

Fellow investors, further to my previous posts, I’ve decided to take a long and hard look at the Atomic transaction in its entirety.

Here goes…

So, what’s the actual deal?

• COPL is to acquire Atomic Oil & Gas LLC for a consideration of £39.9m ($54m) consisting of assumed debt, cash and shares.

• Atomic is a privately-held, shale oil and gas play with assets in the Powder River Basin (in the State of Wyoming, USA). It is majority-owned by 74yr-old David Michael Walsh, the company's current President. Mr Walsh, who is currently knee-deep in debt, is working around the clock to try and stave off bankruptcy (see link below).

• Atomic operates interests in 52,258 acres (gross) of contiguous leasehold. There are two oil production units within the block: the Barron Flats unit (57.7% WI) and the Cole Creek unit (66.7%).

• A non-refundable deposit of £740,000 ($1m) has already been paid.

• A debt-financed payment of £5.9m ($8 million) is now due on, or before, December 31, 2020, for 15% of Atomic's working interest in the Barron Flats and the Cole Creek units.

• COPL will then take ownership of £19.2m ($26m) of Atomic’s bank debt.

• COPL will then take ownership of an additional debt (accounts payables, director fees, pensions, etc.) of £11.1m ($15m).

• Finally, COPL will issue Atomic Oil and Gas LLC COPL shares worth £2.95m ($4m). At 0.002pence per share, COPL could potentially issue 1.5bn shares to meet this requirement.

• Previously known as Monreal Plc, debt specialist Eight Capital Partners will be overseeing the entire transaction.

• The effective date of the transaction was December 1, 2020.

• COPL ‘expects&rsquo; to complete the acquisition by January 31, 2021.


So, from the above, I deduce the following:

• COPL needs to find £5.9m before December 31, 2020 – in 10 days’ time!

• COPL needs to issue shares worth £2.95m ($4m) to Atomic before January 31, 2021. If priced at 0.002pence per share, 1.5bn shares could be issued to meet this requirement.

• On January 31 2021, and if all goes to plan, COPL will inherit £30.3m of Atomic’s debt but only control 57.7% (Baron) and 66.7% (Cole) of Atomic’s producing assets. Currently, no detail has been provided on the financial covenants surrounding the debt or the identity of the owner of the remaining 42.3% (of Baron) and 33.3% (of Cole).

• Finally, COPL will need to raise additional cash for routine operational expenditure before January 31, 2021.

Now, and to be absolutely clear, the above is not necessarily negative. It simply provides full visibility of the fiscal challenges attached to the transaction.

Thus, going forward, the nature of the required financing, the detail behind the £30.3m debt, the audited oil production numbers, and Atomic's breakeven price (of oil per barrel) will determine the true value of COPL shares, and, subsequently, trigger a revaluation of the shares.

It is, nevertheless, important to note that, according to Deloitte Energy Consultants, shale remains a relatively high-cost and capital-intensive method of recovering oil and gas from rocks. Its growth in recent years depended on prices artificially propped up by the Opec cartel’s decision to keep cutting production. The Permian Basin of Texas and New Mexico is the most prolific shale oilfield in the world, let alone the US. But even here, prices above $35 a barrel are needed to turn a profit.

That aside, Arthur Millholland appears to have landed a 'material' opportunity through this 'distressed sale' which is likely to return a poor result for Mr Walsh who is under enormous economic duress.

AIMHO.








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[36jay] 21/12/2020 08:44

Funding update imminent and confirmed.No more placing.Soon 1p+.#copl
Email confirmation from copl's IR that $1m deposit has already been paid from company funds - they had $2.2m at 30 Sep. No placing required for deposit. Copl are planning to fund the rest of the deal through debt and shares issued to seller.