Canadian Overseas Petroleum (LON:COPL, CVE:XOP) shares were unchanged in London as the offshore sub-Sahara focused oil and gas group released latest half year results, which confirmed its strategy of growing the business through farming into, or acquiring assets.
Short term, the focus is on working with partner ExxonMobil to progress planning on future drilling in Liberia and seeking opportunities in the sub-Saharan region it works in.
COPL has a 17% stake in the ExxonMobil operated Block LB-13 offshore exploration project. Exxon holds the remaining 83%. The obligations include the drilling of a one exploration well during the current phase of the PSC (production sharing contract), which runs to April 2016.
COPL's share of all joint interest costs and the gross drilling costs up to $120 million is carried by ExxonMobil.
However, the group did caution that it did not currently have material cash inflows and, or adequate financing to develop profitable operations.
It is pursuing exploration projects but said it would need additional funding to be able to get such projects into positive cash flow positions.
The loss for the six months was $3.8 million compared to a loss of $2.7 million for the same period in 2014. The firm had cash of $0.9mln as at June 30.