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Canadian Overseas Petroleum looks to mid-year for Nigeria finance

COPL said talks are underway with three large groups that can provide both oil services and finance

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COPL wants the first appraisal well to start in the summer

Canadian Overseas Petroleum Limited (LON:COPL) hopes to complete financing for an appraisal drilling programme at OPL226 in Nigeria by the middle of 2019.

COPL said talks are underway with three large groups that can provide both oil services and finance.

READ: Canadian Overseas Petroleum focused on finance for Nigeria licence

The company is looking to arrange project finance of US$100mln and equity of a further US$20mln.

These are the triggers for a project financing and offtake agreement term sheet for between US$30mln to US$50mln agreed with Mauritius Commercial Bank and commodities trading group Trafigura.

Subject to finance, appraisal drilling on OPL 226 is scheduled for mid-year, said COPL, with the intention to bring four wells onstream at a forecast rate of 6-10,000 barrels per day by the end of 2020.

Arthur Millholland, COPL’s chief executive, said: “With the potential for significant near-term production at OPL 226, we are focused on ensuring this comes on stream as soon as possible, with the first production well scheduled to commence drilling by mid-2019, assuming all steps of the process are in order.”

COPL’s 50% owned subsidiary ShoreCan is entitled to 80% of the vehicle that holds the OPL 226 licence.

Elsewhere, talks are ongoing with the Mozambique government over terms for a production sharing contract governing onshore Block PT5-B on the Mozambique coastal plain.

Quick facts: Canadian Overseas Petroleum Limited

Price: 0.0625 GBX

LSE:COPL
Market: LSE
Market Cap: £2.18 m
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