Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXD) raised US$8mln in an accelerated bookbuild share placing as it seeks to expand its portfolio in Wyoming.
Some 30.25mln new shares are being sold at a price of 20p, with the placing run by stockbroker Tennyson Securities.
COPL said the placing proceeds will be used alongside existing cash resources in a bid for Cuda Energy LLC, or its assets, which is presently in a receivership process.
Cuda is a non-operating partner in COPL’s existing positions in Wyoming.
In November, COPL shares were boosted as it confirmed increased oil production volumes from the Barron Flats project in Converse County, Wyoming.
Production averaged 700 barrels of oil per day, marking a 35% improvement from volumes reported earlier that month.
The performance was the result of new facilities coming online to reduce the surface working pressures on the most capable producing well in the field. It added that the well - a horizontal well that has produced at a restricted rate of 150 bopd since August – had exhibited an exceptional response to its miscible flood scheme.