Canadian Overseas Petroleum Limited (LON:COPL, CVE:XOP) shares shot up 30% on Wednesday on London’s AIM market as it confirmed it had signed definitive agreements with UK investors for a £800,000 fund raise.
COPL previously, at the end of March, announced a C$6mln funding in Canada.
“This financing is the first step in relaunching Canadian Overseas Petroleum to the London market and utilizing our listing on the London Stock Exchange,” said Arthur Millholland, COPL chief executive.
“It marks the start of an exciting year".
On AIM, COPL shares gained 1.12p, 30%, to change hands at 4.88p each.
The junior oil company said the admission of the first tranche shares to the London Stock Exchange was expected on April 28.
Proceeds from the share placing will support the group through the drilling of the hotly anticipated first well offshore Liberia, as well as covering overhead costs for the Nigerian oil appraisal and development project and general working capital.
A total of 22.85mln new shares will be issued at a price of 3.5p. Investors will also receive a share warrant to purchase a further share at 4.75p in the next 24 months.
BIG PICTURE: Upcoming Liberia well makes COPL a rarity
Later this year - or early next – Canadian Overseas Petroleum will come sharply into focus as Exxon finally begins drilling the Mesurado-1 exploration well.
COPL owns 17% of the exploration project, which it describes as a ‘low risk, high impact’ opportunity.
Whilst Liberia will be a key focus for investors, more recent opportunities in a separate joint venture also promise a value-adding future for the dual listed group.
Teaming up with Shoreline Energy Group last February saw COPL significantly diversify from being simply a one project or one well exploration company. The new joint venture now has a Nigerian oil block which hosts an un-appraised oil discovery in shallow-to-mid-depth water.
--UPDATED 11:00, APRIL 20--