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Canadian Overseas Petroleum set to build on transformative 2021

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A good indicator about the prospects for a company is when its directors decide to buy, or sell, its shares. At Canadian Overseas Petroleum Limited (CSE:XOP / LSE: COPL) CEO Arthur Millholland on 1 February announced he had bought US$385,700 of COPL shares on the Canadian Securities Exchange at a price of $0.58 per share. As he says: “This share purchase shows my confidence in the company’s recently announced deep discovery and the performance of our miscible flood at our Barron Flats project in Wyoming.”

Millholland is best placed to know about COPL’s prospects and, going by the acquisitions and discoveries COPL has made, he has every reasoncommodities delighted that this discovery reflects the scale of previous discoveries made over my career and in particular the North Sea. We estimate the Frontier element of the discovery to [have] the capacity of up to three horizontal wells per square mile each initially producing 1,000–3,000 barrels per day. We plan a phased production program and have already applied for permits covering four horizontal wells. We will use internal resources to cover the initial costs of development, whilst full field development plans are evaluated. This discovery highlights the long-term sustainable production outlook from this outstanding asset.”

COPL is also pursuing opportunities in Sub-Saharan Africa. In Nigeria, COPL has an interest in an oil appraisal and development project in shallow to mid-water offshore Nigeria in area OPL 226, which it is managing in partnership with Shoreline Energy International Limited and through its jointly held affiliated company Shoreline Canadian Overseas Petroleum Development Corporation (ShoreCan). OPL 226 project has a best estimate of 2C contingent resources of 16 million bbls (gross) and unrisked prospective resources of 533 million barrels (gross) of oil.

The COPL share price is up 94% so far this year, mostly gained in the space of four days after 6 January, when the price surged 84% on news of the confirmation of a significant oil discovery at its Wyoming asset.

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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