Skip to content
 

Canadian Overseas Petroleum: CEO Arthur Millholland talks to The Armchair Trader

*

The word ‘transformative’ is quite often used, and suggests that a particular deal or find may have significantly changed a company’s fortunes. For Canadian Overseas Petroleum (CSE:XOP / LSE:COPL), its acquisition of the Wyoming-based Atomic Oil & Gas company has transformed it from an oil and gas exploration and development company to one that is now also in the business of production.

More than that, the acquisition is proving itself to be “a jewel of an asset”, as Arthur Millholland, CEO and President of COPL, described it to The Armchair Trader, as for a price of $54m the deal came with 31 million barrels of proved and probable reserves. And the timing of the deal was pretty good, too: at the time the deal was agreed, in December 2020, the oil price stood at $37/bpd; since then the oil price has rallied to today’s $69/bpd (11 September). The deal represents a return on investment of more than 50%, with a $2.18/bpd acquisition cost against a value of $7.52/bpd at net present value (10%).


Want the full story? Access all of The Armchair Trader's content for just £5.99 per month.

Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.

Free 28 day trial. Cancel anytime.


Log In or Sign Up to Armchair Trader+

Already a member? Log in here:


Not a member yet? Sign up for your free trial or check out the benefits of membership.

Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.

Looking for great investing ideas? Sign up to our free newsletter.

This article does not constitute investment advice. Make sure you do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Site Partners

Our partners are established, regulated businesses and we are grateful for their support.

Aquis
CME Group
FP Markets
Pepperstone
TMX
WisdomTree
Back To Top