Canadian Overseas Petroleum and its affiliates has received a Resource Report prepared by independent energy consultancy Ryder Scott dated July 29, 2022 confirming its deep oil discovery on its affiliate COPL America Inc's lands in Converse and Natrona counties, Wyoming.

The Report was commissioned by COPL to supplement its internal assessment of crude oil resources in its Discovery disclosed to the market in January 2022.

Highlights

• Confirms the Wyoming deep discovery has total Original Oil in Place of 993.5 million barrels
• It is independent verification of the oil Discovery announced in January 2022
• These are conservative estimates complying with Canadian standards
• COPL plans to drill one horizontal Frontier 1 well and two horizontal Frontier 2 wells as part of its 2022-23 drilling campaign commencing in Q4 2022 with two of the horizontals offsetting the 14-30V discovery well drilled in Q3 2021.

The Report: 

• Supports the Company's conclusion that the Frontier 2 and Dakota discoveries are large stratigraphic oil accumulations encompassing the reserves at the Company's operated 100% WI Cole Creek field;
• Outlines 118 horizontal well locations to exploit the identified Frontier 2 and Dakota Reserves and Resources

Arthur Millholland, President & CEO, commented: 
"This independent Report validates what we announced at the start of the year and highlights the significant potential of our fantastic Wyoming asset. Compiled to Canadian regulatory standards, the Report gives a conservative view, and we expect to see further exploration upside in due course once our drilling program gets under way in the coming months. Following on from the recent financing and completion of the Cuda Energy acquisition, this Report is another step forward as we transform into an oil producer of scale."

Summary of Report

The Report only evaluates COPL's working interest leasehold at the Cole Creek Unit, the non-unit working interest leasehold immediately to the north and east of Cole Creek and includes the western portion of the Barron Flats Federal Deep Unit. (The Report does not evaluate the full extent of the Frontier 1 and Frontier 2 as mapped by the Company outside of these lands.) Prospective Resources in the Report were determined probabilistically with the associated risk factors determined by Ryder Scott. Contingent Resources in the Report were determined deterministically based on the parameters used in the evaluation of the Company's Oil and Gas Reserves at Cole Creek.

COPL discovered oil in five reservoir sands in the Upper Cretaceous Frontier 1 (3 reservoir sands), Frontier 2 and Lower Cretaceous Dakota Formations in theBFU Fed 14-30VF well, which was drilled and completed in the third quarter of 2021. The Report classifies crude oil resources in the Frontier 1 Formation as Prospective Resources. Crude oil resources in the Frontier 2 and Dakota Formations are classified as Contingent Resources ("1C", "2C" and "3C"), which are complementary to Proven Producing and Undeveloped ("1P"), Probable Producing and Undeveloped ("2P") booked by the Company at its Cole Creek Unit as the Frontier 2 and Dakota are considered to be single oil accumulations respectively.

KeyFacts Energy Industry Directory: Canadian Overseas Petroleum