Canadian Overseas Petroleum Limited, an international oil and gas exploration and development company focused on offshore Africa, announces a market update for the year ended December 31, 2018.

2018 Highlights:

• Developed appraisal drilling work programme for OPL 226
• Submitted the work programme for the drilling of no less than three appraisal wells in the NOA #1 area of OPL 226
• ShoreCan accepted terms for project financing for up to US$50 million of its funding required for OPL 226 from Trafigura PTE Ltd ("Trafigura"), a global commodities trading firm, and The Mauritius Commercial Bank Limited ("MCB"), an Africa-focused commercial bankAdvanced discussions with service providers regarding the provision of services for the work programme
• Progressed discussions with the Government of Mozambique regarding terms and issuance of the Production Sharing Contract ("PSC") governing onshore Block PT5-B awarded in the 5th Licensing Round

2019 Outlook:

• Project financing for ShoreCan due to be completed by the end of Q2
• Appraisal drilling on OPL 226 scheduled for mid-year
• On track to bring four appraisal wells onto production at a forecast rate of 6-10,000 bpd by the end of 2020
• Complete negotiations and execute a PSC with the Government of Mozambique
• Complete a production acquisition

Arthur Millholland, President & CEO, commented: 
"We have made significant progress over the last year, having secured financing from an African-focused commercial bank and a global commodities trading firm, which will allow us to capitalise on the significant production opportunity that our offshore Nigerian asset represents. With the potential for significant near-term production at OPL 226, we are focused on ensuring this comes on stream as soon as possible, with the first production well scheduled to commence drilling by mid-2019, assuming all steps of the process are in order. 

"Having achieved certain milestones in 2018, and given the level of interest we've received in OPL 226, we enter 2019 with renewed optimism".

Link to Canadian Overseas Petroleum Nigeria country page   l   KeyFacts Energy Nigeria country page