Canadian Overseas Petroleum Limited (LON:COPL) has topped up its working capital with a £497,000 share placing, as it continues to progress field development and financing planning for the OPL 226 project in Nigeria.
In a statement, the company revealed it will be issuing 497mln new shares priced at 0.1p each to investors via the placing arranged by Shard Capital.
At OPL 226 the intention is to develop an oil field with three or four wells in order to deliver some 6,000 to 10,000 barrels of oil per day by the end of 2020.
Drilling is expected to start in late 2019, subject to regulatory approval, and will be followed by a second phase of wells. A ‘performance bond’ is already in place to allow the company to begin the programme.
"This placing will help ensure the company is able to realise the significant potential with OPL 226,” said Arthur Millholland, COPL chief executive.
“As it is limited to only 20% of our current market capitalisation, we expect to announce additional financing measures in the coming weeks. Concurrently we are focused on concluding the placement of the OPL 226 Performance Bond by our Nigerian affiliate and progressing the acceptance of the jack-up drilling rig currently under a non-binding letter of intent.”