Oil-junior, Canadian Overseas Petroleum Limited (LON:COPL, CVE:XOP), has announced a new £2.5mln funding, with new shares being issued at a price of 1p each.
Cash raised in the equity funding is earmarked to cover on going general and administrative expenses which mainly comprises covering the head count of geologists, a geophysicist, reservoir engineers, a drilling engineer as well as in-house counsel.
READ: COPL making “encouraging progress” towards Nigeria funding deal
The company noted that its expenses amount to approximately US$410,000 per month, as it works to progress its assets in West Africa.
COPL noted that it also has financial commitments related to its planned activity at its Nigerian joint venture, where new appraisal drilling planned for late 2017 or early 2018.
The company highlighted that it has engaged intermediaries, COFARCO SAS of Paris and London’s Zeus Capital, to arrange project-level funding for the upcoming work programmes.
READ: Canadian Overseas Petroleum boss upbeat on offshore Nigerian opportunity
The company said it has achieved ‘encouraging progress’ in the project funding efforts, adding that it remained confident that it will meet the target to drill an appraisal well with an early production scheme following shortly after.
Arthur Millholland, COPL chief executive, said in a statement : "This placing will strengthen our balance sheet while we concurrently work towards finalising the project financing, operations program and plan for our OPL 226 project offshore Nigeria."