Canadian Overseas Petroleum Limited (LON:COPL, CVE:XOP) told investors it is making “encouraging progress” towards a funding deal for its oil field appraisal and development project offshore Nigeria.
The AIM-quoted oiler said it is confident that it will drill an appraisal well in late 2017 or early 2018 as targeted.
READ: Canadian Overseas Petroleum boss upbeat on offshore Nigerian opportunity
"At present we remain focused on developing our highly attractive oil appraisal and development project in OPL 226, offshore Nigeria,” said Arthur Millholland, COPL chief executive.
“The initial work program will be to drill an appraisal well at the NOA-1 oil discovery and bring it into production through an early production scheme.
“The drilling of up to three additional similar wells on the NOA Structure would follow on from this.
“This phase of the project would precede a full field development.”
READ: Talks over Nigeria exploration funding advancing well says COPL
He added: “the two Investment Banks we are engaged with, specialise in project financing of African energy ventures and we have great confidence that they will secure the necessary funding.”
COPL also updated on its plans for the Block LB-13 exploration area offshore Liberia, where the production sharing contract alongside ExxonMobil expired on September 25. The company said it intends to approach the Liberian authorities about a new contract for the area, as it sees opportunity in other areas of Block LB-13. It added that it continues to perform geological and geophysical analysis of the area.
"We look forward to updating shareholders with the next steps that we take with regards to evaluating other leads mapped out on block LB-13 and other opportunities we see along the Liberian continental margin," Millholland added.