Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP) said it has upgraded its reserves following the completion of the acquisition of Cuda Energy’s assets on July 26, 2022.
Net working interest 1P or proven reserves after royalties increase 47% to 17.3mln barrels equivalent (boe), with discounted net present value 93% higher at US$255mln.
Net WI 2P Reserves (proven and probable) after royalties increased by 39% to 31.3mln boe, while their discounted NPV value rises by 91% to US$492mln.
On a per barrel basis, the 1P reserves were valued at US$14.75, up 31%, and the 2P reserves at US$15.70, up 38%.
All the comparisons were at the end of 2021 with the analysis carried out by Ryder Scott
In a statement, Arthur Millholland, COPL’s CEO, commented: "The updated reserves of the Company and the significant increase in COPL's 2P NPV 10% to US$492mln illustrate the benefit of the timing of our acquisition of the Cuda assets in a high oil price environment."
“We purchased these assets for US$19.15mln with the incremental reserves acquired at a cost of $2.20 per barrel. This is a remarkable metric to the comparative valuation of the 2P Reserves of $15.70 per barrel as of July 31, 2022," he added.