Canadian Overseas Petroleum Ltd (LON:COPL, CVE:XOP) highlighted “significant progress” as it released an update for the first quarter ended March 31.
The oil and gas junior is working on a financing package for OPL 226 for its appraisal and development project offshore Nigeria, as well as the required necessary government consents.
READ: Canadian Overseas Petroleum can take heart from oil price rally
“Our management team, who are also shareholders, share the concern of the shareholders who contact us about the length of time it is taking to move forward on this project,” said Arthur Millholland, COPL chief executive.
He added: “Unfortunately, most if not all of the issues have been outside of our control, but together the company and our joint venture partner Shoreline Energy are focused on bringing this part of the project to a conclusion.”
Millholland highlighted that the group’s economics are “very attractive”, especially as crude oil prices remain above US$75 per barrel, which he said should allow COPL to conclude the financing and move quickly to the next or operational phase.