Canadian Overseas Petroleum Ltd Announces 2021 Financial Results and Operations Update

LONDON, UK and CALGARY AB / ACCESSWIRE / April 1, 2022 / Canadian Overseas Petroleum Limited (“COPL” or the “Company”) (XOP:CST)(COPL:LSE), an international oil and gas exploration, production and development company with production and development operations centered in Converse and Natrona counties, Wyoming, USA, is pleased to announce its financial results for the fourth quarter of 2021 and for the year ending December 31, 2021.

This year has been marked by major positive changes for the COPL.

Early in the year, COPL completed the acquisition of Atomic Oil & Gas, which transformed the company. COPL now operates three assets in Wyoming’s Powder River Basin that have a reserve life of more than 40 years and sloping oil production from gas-miscible flooding, with facilities built and commissioned. in service in 2019. The assets are:

At the time the transaction closed, the assets were producing 1,100 barrels of light oil. Following the implementation of a works program by COPL, the asset has since greatly exceeded initial expectations and current (gross) production of approximately 1,900 barrels per day is limited due to continued oil constraints. installation. The asset has identified 2P reserves of approximately 26 million barrels (net) of light oil, before royalty payments.

  • Of the significant acreage acquired in the Wyoming asset, only a small portion is currently in production. An exploration program is underway which has already identified:

  • In January 2022, the COPL confirmed a major discovery with an estimated total reservoir volume of 1.5 to 1.9 billion barrels of oil-in-place (“OIP”), of which 1.2 to 1.6 billion barrels of OIP underpin COPL lands.

  • This highlights the potential for the Wyoming asset to generate long-term production at a scale several times greater than COPL’s original expectations.

  • The Frontier element of discovery covers approximately 61 square miles, with 90% of the resource defined on company land.

    • The Company intends to begin initial discovery delineation later this year with horizontal wells from 16 drill locations, for which permits are pending.

    • COPL’s operating subsidiary, Southwestern Production Corp, is in the process of securing a drilling rig for the delineation drilling program and the planned drilling program of 8 additional production wells and 1 injection well on its field. production Barron Flats Shannon.

Fourth quarter 2021 financial highlights:

  • Net crude oil sales before royalties averaged 1,094 bbls/d versus 1,071 bbls/d in the third quarter of 2021, which was limited due to facility constraints.

  • Oil sales, net of royalties, were $5.8 million, offset by a realized loss of $1.4 million on crude oil hedging contracts, compared to $5.2 million offset by a realized loss of $0.6 million on crude oil hedging contracts in the third quarter of 2021.

  • Realized a gain of $1.6 million on butane hedging contracts, compared to a gain of $1.1 million in the third quarter of 2021, with respect to the miscible flood injection program.

  • Net operating income was $43.97/bbl, which included a realized net gain of $2.76/bbl on crude oil and butane contracts, compared to $26.85/bbl, which included a realized loss of $4.31/bbl on crude oil and butane contracts in the third quarter. of 2021.

2021 Financial Highlights:

  • Net crude oil sales before royalties averaged 972 bpd, which was limited due to facility constraints.

  • Oil sales, net of royalties, were $15.0 million, offset by a realized loss of $2.3 million on crude oil hedging contracts.

  • Realized a gain of $2.8 million on butane cover contracts under the miscible flood injection program.

  • Net operating income was $33.10/bbl, which included a realized net gain of $1.92/bbl on crude oil and butane contracts.

COPL objectives for 2022:

  • Complete consolidation of available interests in Wyoming assets.

  • Refinance the COPL America Inc credit facility to reduce the Company’s cost of capital.

  • Optimize and increase oil production at the miscible flooding of the Barron Flats Shannon unit operated.

  • Commence Phase 1 of Barron Flats Deep Oil discovery delineation.

  • Maintain the company’s ESG operational credentials.

Arthur Millholland, President and CEO, said: “We have achieved our 2021 targets and with the recent discovery COPL is very well positioned to take full advantage of the opportunity. This year has been a year of transformation and we look to the future with renewed confidence.

Financial results and related annual regulatory filing materials, including financial statements, MD&A and Annual Information Form, which includes reserve status data and other oil and gas information (Regulation National 51-101 Forms 51-101A1, 51-101F2, 51-101F3), for the fiscal year ending December 31, 2021, may be viewed under the Company’s name at www.sedar.com or on the Company’s website at www.canoverseas.com.

About the company:

COPL is an international oil and gas exploration, development, and production company actively pursuing opportunities in the United States with operations in Converse and Natrona counties in Wyoming, and in sub-Saharan Africa through its ShoreCan joint venture in Nigeria, and independently in other countries.

For more information, please contact:

Mr. Arthur Millholland, President and CEO
Mr. Ryan Gaffney, Chief Financial Officer
Canadian Overseas Petroleum Limited
Tel: + 1 (403) 262 5441

Cathy Hume
CHF Investor Relations
Tel: +1 (416) 868 1079 ext. 251
Email: [email protected]

Charles Goodwin
PR Limited yellow jersey
Tel: +44 (0) 77 4778 8221
Email: [email protected]

The ordinary shares are listed under the symbol “XOP” on the CSE and under the symbol “COPL” on the London Stock Exchange.

This press release contains forward-looking statements. Use of any of the words “initial”, “planned”, “may”, “will”, “before”, “estimate”, “anticipate”, “believe”, “should”, “plan”, ” future”, “continue”, “may”, “expect” and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain expectations and key assumptions made by the Company, including, but not limited to, the ability to raise necessary financing for operations, delays or changes in plans regarding exploration or development projects or capital expenditures. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements since the Company cannot guarantee that they will prove to be correct since the forward-looking statements address Future events and conditions, by their very nature, involve inherent risks and uncertainties, many of which are beyond the control of Canadian Overseas Petroleum Ltd. For example, uncertainty in reserve estimates, uncertainty in production estimates and projections, cost overruns, health and safety issues, political and environmental risks, fluctuations in commodity prices and exchange rates, changes in legislation affecting the oil and gas industry could cause actual results to differ materially from those expressed or implied by the forward-looking information. The forward-looking statements contained in this press release are made as of the date hereof, and Canadian Overseas Petroleum undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws.

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THE SOURCE: Canadian Overseas Petroleum Ltd

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