Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXD) (COPL) has received Canadian court approval for the acquisition of the Wyoming assets of Cuda Energy.
Final approval of the sale is subject to the approval of the United States Bankruptcy Court for the District of Wyoming.
Assuming the US sale order becomes final, COPL said it expects completion to occur sometime between 10 June and 10 July 2022.
Arthur Millholland, COPL’s CEO said: "We have achieved the first step in the court approval process for the acquisition of the Cuda assets.
“The next step is the process mandated by Chapter 15 of the United States Bankruptcy Code as it pertains to Cuda Energy LLC.
“Though the timelines appear lengthy, they are part of the process as mandated by the bankruptcy laws in Canada and the United States that allows for the acquisition of the assets free and clear of liens and claims."
COPL announced the acquisition of Cuda last month alongside a US$20mln bridge loan and US$13mln share placing to help pay for the deal.
Cuda is currently in receivership and has an interest in the Barron Flats Shannon field (27% WI); Barron Flats Federal (Deep), Cole Creek and non-unitized lands (27.5%-33.333% WI), all of which is acreage that COPL bought into last year with the acquisition of Atomic Energy.