COPL provides update on its corporate and financial performance

Canadian Overseas Petroleum Limited (COPL), engaged in the exploration, production, and development of oil and gas internationally, with operations focused in Converse and Natrona counties, Wyoming, USA, recently released an update on its performance and financial situation. On December 29, 2023, the company announced a forbearance agreement with its principal lender, a capital increase, and the appointment of a Restructuring Director, with the aim of exploring strategic financing or sale options.

On January 10, 2024, in response to shareholder inquiries, COPL disclosed that the value of its assets would be insufficient to cover the claims of secured and unsecured creditors, exceeding 130 million US dollars, placing the company in a precarious financial situation in terms of liquidity. Despite a 2.5 million US dollar fundraising on January 16, intended to maintain the company's stock listing, an independent technical analysis of the assets did not alter the company's perception of their value.

COPL is facing liquidity constraints, preventing the acquisition of propane or butane for injection. The average daily production for 2024 was approximately 1,000 boe/d. Based on current cash flow projections, the company's cash reserves will be depleted by early March 2024, requiring additional financing to continue its operations. The principal lender will not extend the forbearance period beyond February 29, 2024, forcing COPL to consider strategic alternatives, including insolvency protection.