Canadian Overseas Petroleum Limited ("COPL"), an international oil and gas exploration and development company focused on sub-Sahara Africa, announces its results for the year ending December 31, 2019.

The Company at the end of its fiscal year-end, December 31, 2019, was experiencing liquidity issues which have extended into the current period of 2020. As stated previously, the Company does not currently have sufficient working capital, cash inflows and/or adequate financing to continue its operations. Accordingly, the Company’s continued successful operations are dependent on its ability to obtain additional financing.  

The Board of Directors has undertaken steps to mitigate these issues currently and going forward. These steps include the following:

1. In February 2020, the Company announced it had entered into a loan agreement in the form of a Promissory Note, secured by the Company’s assets, with the President and CEO for CDN$200,000. The purpose of this loan was to ease the liquidity issue temporarily to allow the Company to enter into a larger Financing.
2. On April 29, 2020, the Company announced that it had entered into a £2,000,000 Equity Placing Agreement with Yorkville Advisors Global (“YA”) and Riverfort Global Opportunities PCC. Closing of this facility is contingent of the clearing of a Prospectus which is currently in front of the UK Regulators.
3. On April 29, 2020, The Company announced the President and CEO had agreed to convert the Promissory Note for CDN$200,000 into Common Shares at the Benchmark Price in the announced Yorkville-Riverfort Equity Placing Agreement. Closing is subject to Regulatory Approval and satisfactory discussions with the Company’s unsecured creditors.
4. The Company’s Employees have agreed to accept Common Shares in COPL as payment for accrued unpaid salaries at the Subscription Price in the announced Yorkville-Riverfort Equity Placing Agreement. Closing is subject to Regulatory Approval. 
5. The Company’s Directors have agreed for the Company to write off accrued unpaid Directors Fees for 2019 and 2020.
6. The Company has entered into discussions with its major unsecured creditors, representing businesses who have provided services to the Company and are included in Accounts Payable. The Company’s Board of Directors by resolution at a meeting Board of Directors held on May 12, 2020 has authorized management to enter into agreements with these businesses to convert their respective accounts receivable into Common Shares of the Company at the Subscription Price in the in the announced Yorkville-Riverfort Equity Placing Agreement.

Arthur Millholland, President & CEO, commented: 
“This has been a difficult time for COPL. We certainly could not foresee the onset of the global COVID-19 pandemic, nor its effect on the global markets at year end or at the beginning of March. We have taken these steps in difficult times to allow the business to survive. Our employees, management and directors have all contributed to this task at hand. The Company will emerge from this with a much-improved balance sheet and enhanced liquidity. In conjunction with the Yorkville-Riverfort financing announced recently, we will be able to move forward on COPL’s key asset in Nigeria. Activities will recommence when the COVID-19 situation allows, as Nigeria has not escaped this global pandemic.” 

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