Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors
Why invest in COPL?
Canadian Overseas Petroleum Limited: THE INVESTMENT CASE

COPL’s Liberia well can be transformational - broker

“Mesurado-1 is a high impact well which could be potentially transformational for COPL," said analyst Craig Howie.
Oil rig workers drilling offshore
INVESTMENT OVERVIEW: COPL The Big Picture
COPL owns a 17% stake in the Mesurado well

Shore Capital analyst Craig Howie says he is highly encouraged to see the start of drilling operations for Canadian Overseas Petroleum Limited’s (LON:COPL, CVE:XOP) exploration well offshore Liberia.

It was confirmed on Wednesday that project operator US oil supermajor ExxonMobil began drilling the Mesurado-1 well.

COPL owns a 17% stake in the exploration project, though its share of drilling costs are covered by Exxon.

In a note, Howie said: “Mesurado-1 is a high impact well which could be potentially transformational for COPL, in our opinion.

“Given the strong subsurface understanding and presence of a lucrative multi-well carry (targeting an extensive prospect inventory), we believe that the risks lie firmly on the upside for the company.”

Shore Capital’s valuation, risked net asset value, amounts to 21p per share which is more than double the current price of 9.99p.

Mesurado-1 is located some 50 miles from the Liberian coast and is in 2,500 metres of water.

The target has been estimated to host 1.78bn to 4.2bn of gross prospective recoverable oil resources, which would equate to between 305mln and 720mln barrels net for COPL’s interest in the project.

The project is on trend with exploration successes in neighbouring countries such as Sierra Leone, Senegal, Cote D’Ivoire and Ghana.

View full COPL profile View Profile

Canadian Overseas Petroleum Limited Timeline

Related Articles

two oil rigs in the North Sea
October 31 2016
The challenging oil and gas markets have forced Plexus to make fundamental changes to its business, changes which it says have made it a stronger company than when the downturn set in
Cadogan-well.JPG
September 20 2016
Cadogan has now stemmed its losses. The next step will be a real turnaround
picture of gas pipes
June 14 2017
The Ntorya-3 appraisal well may be delayed in favour of acquiring another batch of 3D seismic over the licence.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use