Canadian Overseas Petrol... Share Discussion Threads

[luckyabbeygale] 13/8/2021 11:47

I don't get it. Is this sort of good news for COPL?.

[edgein] 13/8/2021 11:24

Art makes his move:

"London, United Kingdom; Calgary, Canada: August 13, 2021 - Canadian Overseas Petroleum Limited ("COPL" or the "Company") (XOP: CSE) & (COPL: LSE), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona Counties, Wyoming, USA, announces that its affiliate Southwestern Production Corp. ("Southwestern"), operator of the Barron Flats Shannon Miscible Flood Unit (the "Barron Flats Unit"), has filed a law suit in the State Court of Wyoming, Converse County, against the following named defendants: Cuda Energy LLC ("Cuda"), a wholly owned subsidiary of Cuda Oil and Gas Inc. (CUDA:TSXV), Bridging Finance, Inc. ("Bridging"), and Tallinn Capital Energy L.P. ("Tallinn"), to seek a Judicial Foreclosure on Cuda's non operated working interest in the Barron Flats Unit."

Just went it looks like Cuda might have survived by the skin of their teeth Art goes for the jugular!

Regards,
Ed.

[luckyabbeygale] 13/8/2021 11:21

More news just come out. I assume this does not affect the share price.

[phurley] 13/8/2021 02:46

Humble pie. Arthur has done well. Good luck to all of u that kept the faith.

[ride daice] 12/8/2021 17:36

I have to admit that I think this is the most bizarre scenario I've experienced in 20 years of investing in O&G.

I bought into COPL before Liberia and despite a couple of averaging down events after that disappointment I had definitely confined COPL to the bottom drawer with the intention to sell the lot if the unlikely opportunity of getting a decent fraction of my stake back ever arose. Then along came the Atomic deal and this glorious suspension. I've never experienced a glorious suspension before (unlike members of the S&M community I suspect) because they normally don't end well but on this occasion COPL will be coming out of the tunnel in significantly better shape than when it entered imho.

I suspect that other weary LTH'ers may share this view and I for one have no intention of running for the exit next week when trading resumes (I hope). We now have lots of oil and oil is expensive.

GLA.

[edgein] 12/8/2021 14:53

And to rub the salt in to those that suggested that the US assets meant COPL were losing interest in Africa here's this bit too:

"In order to execute its strategic growth strategy, the Company plans to:

. exploit management’s experience at finding and investing in high return exploration, appraisal or development opportunities focused primarily on oil;

. continue to evaluate opportunities on the West African Transform Margin and OPL 226, that are focused on oil trapped in Late Cretaceous sandstone reservoirs. While some parts of West Africa are relatively lightly explored via exploration drilling, it has the potential to offer high reward for large, undiscovered oil and gas deposits;

. partner with other African operators to explore for, appraise and/or develop properties, in particular with respect to existing interests in Nigeria"

Regards,
Ed.

[edgein] 12/8/2021 14:40

In Nigerian/Africa,

"ShoreCan is focussed on acquiring upstream oil and gas exploration, development and producing assets in Africa, and has taken a position in Nigeria while it continues to evaluate a variety of additional assets in Nigeria."

There will be lot of assets up for grabs with the majors losing interest in their Nigerian assets, lots of smaller non-core assets. So it will be interesting to see what they get their hands on now that COPL are in a much stronger position to develop Shorecan now that they have growing production and cashflow into the COPL group.

The scale of the Nigerian assets remain as company making as ever with 1U/P90 of around 300mmbbls (gross), P50/2U of Crica 500mmbbls (gross) and 3U/P10 of around 1bn bbls (gross). No wonder Essar were so keen to get these back again.

"In addition, ShoreCan has invested USD$8 million into Essar Nigeria in the form of an interest-free shareholder loan. The funds are to be used for Essar Nigeria operations and in particular, to cover work program obligations, including the costs of drilling one well under Phase-1 of the PSC."

Which could be reclaimed from production should Essar be able to bring this block to production.

"The Directors believe that Essar Nigeria (which is conditionally 80% owned by ShoreCan) is in the final stage of being granted ministerial consent for the change of control of Essar Nigeria pursuant to the OPL 226 Transaction."

We're all looking forward to this (well us actual holders) as that would be another major part of the plan falling into place and initially carried for months by Essar who would take on all the risk of Noa-2, COPL can just remain spectators until they see the flow rates.

"The Contractor shall exclude and relinquish 50% of the contract area upon the earlier of the conversion of OPL to OML and the expiry of the exploration period."

Given the huge size of OPL226 they can just relinquish the deep water areas off the shelf where they haven't taken any seismic yet, so that's pretty much covered too.

They've been doing the rounds too:

"to grow its international oil and gas business in Sub-Saharan Africa and elsewhere in the world by farming into and/or acquiring interests in, exploration, unappraised and/or undeveloped assets as well as in producing assets using the expertise and experience of its senior management team.

Since its inception, the Company, both on its own and through its joint venture with ShoreCan, has explored potential development opportunities in various parts of Africa including, among others, the United Republic of Tanzania, the Republic of Namibia, the Republic of Equatorial Guinea, Nigeria and Mozambique."

If we're thinking WA EOR projects as mentioned previously by AM, its possibly Nigeria or Equatorial Guinea (Equatorial Guinea held 1.1 billion barrels of proved crude oil reserves as of January 2017. Production of petroleum and other liquids averaged 244,000 barrels per day (b/d) in 2016, which is lower than its peak production of 375,000 b/d in 2005). I wonder which of these will pop first as we watch the progress in Wyoming develop. Interesting times ahead, launch due next week.

Regards,
Ed.

[edgein] 12/8/2021 14:14

Some very interesting snippets in the prospectus for sure, especially about the performance of the miscible flood and the impact that its having on the production and reserves of the Wyoming assets:

"The subsequent analysis of one full year of production and gas injection
data indicated the performance of the miscible flood is exceeding the initial plan. As such, the Ryder Scott Report filed by the Company as at 31 December 2020, and now updated effective 1 April 2021, has been updated accordingly to reflect the reservoir performance up to 31 March 2021.

In addition, the Company is evaluating drilling locations and targeted reservoirs in Proved Developed and Proved Undeveloped Reserve areas in the Cole Creek unit. The purpose of this evaluation will be to drill an initial 2 to 4 wells in 2021-2022 needed to initiate miscible flooding in 2023-2024 and to increase the Company’s oil production."

So it sounds like they still plan to drill on CC (as well as reactivate those 17 wells) this year. RS suggest there's around 114mmbbls in place for the Frontier and Dakota formations and numerous proven and possible future well locations. So there's lots of potential to increase flow rates with the miscible flood exceeding expectations and these new wells to be drilled this year and next. They'll be going flat out drilling BFU next year too. Once they establish the flow rates over the longer term of the CC field there's lots of scope for the reserves to increase from the current 11.9mmbbls given the oil in place numbers given in this report.

There's a good chance they can add significantly to the 2P given the performance of other wells in the area. With our previous NPV of around $185m at $39/bbl increasing to over $300m at $70/bbl there's current scope to add significantly to that. Wyoming alone makes our current cap of £60m look tiny, gonna pop. Plus they suspended with a very hefty cash balance which will be confirmed again in the Q2 coming soon.

Regards,
Ed.

[ride daice] 12/8/2021 13:41

There must be plenty of nervous shorts out there.

[meek] 12/8/2021 13:27

I think that will depend on opening price, anything under 1p and I'll be trying to treble my holding.

[asm5] 12/8/2021 06:15

I see Zak Mir has done a good write up.

[zxie] 11/8/2021 18:15

Come back soon

[zxie] 11/8/2021 18:15

is pleased to announce that it has received written notice approving a Final Prospectus dated 11 August 2021 ("Prospectus") from the Financial Conduct Authority ("FCA"). The Company has subsequently applied to the FCA and London Stock Exchange for relisting on the official list of the FCA and readmission to trading of its common shares on the Standard Segment of the London Stock Exchanges Main Market for listed securities.

[sportbilly1976] 11/8/2021 18:11

Page 263, Ryder Scott report

The following table shows the net present value of future net revenue (before deduction of income taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the reserves data of the Company evaluated for the year ended April 1, 2021, and identifies the respective portions thereof that we have evaluated and reported on to the Company’s management:


Independent
Qualified
Reserves
Evaluator or
Auditor
Effective Date of
Evaluation Report
Location of
Reserves (Country
or Foreign
Geographic Area)

Net Present Value of Future Net Revenue
(before income taxes, 10% discount rate)
(USD M$)
Audited Evaluated Reviewed Total
Ryder Scott
Company

April 1, 2021


$174,791



$174.8 bln !

[ultimatejustice9] 11/8/2021 17:44

Loads of information on the COPL telegram group - open to all. You need the telegram app and then follow the link

hxxps://t.me/joinchat/SId8W51wOfISv0ss

H T T P S (hides the first part for some reason)

[ride daice] 11/8/2021 17:30

Where is Phurley ? It would be interesting to know what he/she thinks of today's events.

[smcl] 11/8/2021 17:23

Agreed Skidaddle.

[skidaddle] 11/8/2021 17:17

The real worry was whether it was going relist at all.

Not anymore.

This baby will have legs. Just how long remains to be seen, but considerably north of suspension imho.

[sportbilly1976] 11/8/2021 17:17

Prospectus now on website



"It is expected that the Admission will become effective and that
unconditional dealings in the Common Shares will commence at 8:00 am (London time) on 17 August 2021."

[smcl] 11/8/2021 16:57

It will be at least 1p.... a lot more than when suspended.

It's still unknown what the outcome will be in terms of share price but its reasonable to assume it will be better than it was before.... and that has to be a good thing!

[saint in exile] 11/8/2021 16:54

Sell away..reckon there will be far more buyers tbh

[con90210] 11/8/2021 16:38

Totally disagree

[jamie414] 11/8/2021 15:44

It will be rebased and if you haven't noticed II's have big wedges in here.PI are now just little fish in the big pond.

[roberts1975] 11/8/2021 15:38

How many are locked in hereI would urge caution when this comes back There is going to be one mass sell off