Canadian Overseas Petroleum Limited (‘COPL’), an international oil and gas exploration and development company focused on sub-Sahara Africa, has completed a placing for up to £2,000,000 with Yorkville Advisors Global (‘YA’) and Riverfort Global Opportunities PCC (‘RGO’) at a placing price of 0.07p per share. The Company has also entered into an Equity Sharing Agreement with the parties. These funds will cover general working capital and enable the Company to continue focusing on its Nigerian OPL 226 project.
The benefits of this transaction include:
The securing of this equity capital despite the uncertain market environment underpins COPL’s confidence that it can successfully execute its business plan.
It will allow the Company to attract additional capital going forward due to the knowledge it has sufficient funding to navigate these unprecedented market conditions.
It allows the Company to preserve its interest in its prime Nigerian asset OPL 226, which is an outstanding conventional light oil development project.
The structure of the transaction allows for orderly and measured dilution over twenty-four (24) months.
As part of the transaction, CEO Arthur Millholland, has agreed to defer the repayment of his previously disclosed loan to the Company until December 31, 2020 or convert it into COPL Shares at the reference price.
Arthur Millholland, President and CEO, commented:
‘To have secured this funding, especially during these very challenging times, reflects the Company’s prospects and the high quality of its principle asset. We now have the ability to press on with discussions with relevant stakeholders and accelerate efforts to deliver the clear potential of OPL 226 by the end of 2020.