Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

UPDATE - COPL's window of opportunity for Liberia well is still open

“From a timing perspective, we believe there is still a lot of time for the drill programme but the window is shortening for us to accomplish what we want to accomplish,” Chris McLean, COPL chief financial officer told Proactive.
UPDATE - COPL's window of opportunity for Liberia well is still open

-adds management comments and additional detail-

Reduced numbers of necessary foreign workers in Liberia due to the outbreak of the Ebola virus in West Africa has meant that Canadian Overseas Petroleum’s (LON:COPL, CVE:XOP) planned offshore drilling programme will be delayed.

COPL has a 17% stake in the ExxonMobil operated Block LB-13 offshore exploration project.

Nevertheless the company says the technical assessment of the project area, including geological modelling, continues and new targets have now been identified and mapped as a result.

"We continue to make significant progress with the technical evaluation of Liberia,” chief executive Arthur Millholland said in a statement.

“Whilst the possible delay in the commencement of drilling is regrettable, the safety of the partnership's staff is paramount and we are confident that staff numbers in country will return to normal levels in the near future."

There are alternative approaches that could yet see the first exploration well drilled within the previously envisaged “window of opportunity” for the programme.

Rig availability is not considered a problem and long-lead items are understood to be in-hand, therefore it is mainly a matter of logistics and contingency plans are currently being worked on.

One possible solution would be the re-location of the envisaged shore-based support to a neighbouring country such as the Ivory Coast or Ghana.

It is not wholly uncommon for support and rig operations occurring in separate territories – recently Africa Petroleum’s rig was operated out in Ghana, while Anadarko and Chevron’s programme was supported from both Liberia and Ivory Coast.

“These aren’t huge logistical issues to get over, it is just the practicalities of the planning that went into preparing an operation in one place has to be adapted for another,” Chris McLean, COPL chief financial officer told Proactive.

“From a timing perspective, we believe there is still a lot of time for the drill programme but the window is shortening for us to accomplish what we want to accomplish.”

Once an operational plan is finalised and confirmed it is likely to take between 60 to 90 days for drilling to actually begin. As such, it is still possible that the first well could still go down this year with a second well potentially following next year.

This morning, COPL also gave investors an update into its expansion plans – with potential new acquisitions in West Africa.

COPL also told investors that it has, as the operator of a consortium, bid for an asset in an area it describes as the West Africa Transform Margin.

While details were somewhat scarce, as the award has yet to be approved, COPL did reveal that the consortium includes what it called “a prominent producing independent African energy company”.

It expects to be in a position to provide an update on the bid during the third quarter.

The company also continues to evaluate opportunities in Nigeria, though its option over the OPL 2010 block has now expired. It still has eyes for OPL 2010, but COPL said it is also evaluating and negotiating several other assets in Nigeria.

It is in negotiations to acquire two offshore blocks, both of which include appraised discoveries with contingent resources. It has also been invited to participate in the G&G (geophysical and geochemical) study for a deep water offshore block.

Opportunities in the country play to management’s strengths and experience, COPL said.

Millholland added: "The company continues to be motivated by the opportunity that exists in West Africa for exploration and development of the WATM as regional companies look to partner with experienced management teams.

“The COPL team has been part of the evaluation of deep water prospects and the development of mid-water production schemes over the last 30 years. It is this combination of experience and access to undeveloped assets that are creating these opportunities.”

View full COPL profile View Profile

Canadian Overseas Petroleum Limited Timeline

August 17 2018

Related Articles

Paul Welch
August 30 2018
Production since the half year has risen to 4,400 barrels per day
oil and gas operations
July 09 2018
Greka highlighted improved revenues which boosted gross profit despite the challenges experienced in India and China through 2017.
onshore oil field
Eland, along with its project partner, produced almost 1mln barrels of oil from the OML 40 licence in the first six months of the year, a significant year-on-year rise

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors 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