Canadian Overseas Petroleum Limited (LON:COPL, CVE:XOP) has increased the size of its previously announced equity funding, and it will now raise C$8.25mln.
In late March the company announced the original C$6mln Canadian share placing, and last week revealed a £800,000 UK raise representing a ‘relaunch’ of the company in London.
And now it confirms that it will issue a total of 117.9mln units each priced at 7 cents to raise C$8.25mln.
The cash injection is earmarked to meet the company’s obligations for its ongoing projects in West Africa - supporting the company ahead of the Exxon operated exploration well offshore Liberia, as well as covering its share of costs for an appraisal and development joint venture in Nigeria.
Units issued in the placing will comprise one new common share and one warrant to purchase an additional common share at a price of 9.5 cents over a two year period.
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.