Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXD) has issued a stock market statement responding to what it described as “unfounded market rumours, through disinformation posted on social media and internet chat forums.”
The company, in the statement, reiterated its aims for 2022 and addressed internet rumours related to its annual filings for 2021, submitted recently to the company’s website.
It highlighted that its objectives include the completion of its arrangements to consolidate interests in Wyoming, the refinancing of a credit facility for its American subsidiary to reduce cost of capital, optimise oil production, and start Phase 1 of the delineation of the Barron Flats Deep Oil discovery.
The company noted that at the end of December it had US$7.8mln of cash and equivalents, and, noted that at the end of the period cash was impacted by US$3.2mln related to the ongoing operations from Cuda Energy LLC, which is currently in bankruptcy.
COPL also provided details on a waiver to a borrowing facility for its United States subsidiary, entered into during March 2022, with respect to past defaults determined by the lender under terms agreed in March 2021. In the statement, the company detailed how the waiver and its impacts are represented in the financial results.
"I am making this statement to the markets as I am aware that we have a large number of private shareholders who may be influenced by certain groups or individuals with an agenda propagated by social media or other platforms to benefit themselves,” chief executive Arthur Millholland said.
“I do though understand the disclosure with respect to financial accounts can be difficult to understand to some, but I am also well aware these disclosures can be easily manipulated by those who understand the inherent weaknesses of others in the market.
“I hope our clarification aids those stakeholders that have concerns resulting from the views and discussions on social media and internet chat forums.
“All stakeholders should know we have an experienced managerial, financial and technical team, and such the company is more than confident in reiterating that we delivered on our 2021 objectives, and are well positioned to achieve our forthcoming plan in 2022.
“In addition, you should not discount our recent deep oil discovery which COPL will fully capitalize on as we are confident in our assessments. Again, 2021 has been a transformative year for the company and we look to the future with renewed confidence.”