Canadian Overseas Petroleum needs financing by March to continue

Chicago, Feb. 1 – Canadian Overseas Petroleum Ltd. announced that affiliated COPL America may not meet its financial covenants in its senior credit facility in February and March unless new financing is secured, according to a press release.

The company does not currently have sufficient working capital for its present requirements and the company believes that additional financing will be required by March 2023.

The company said that it may not be able to continue as a going concern with no assurance of further financing.

The company is working closely with its professional advisers to negotiate and secure a new senior debt facility, which the company is targeting to draw down before March 31.

The Company has engaged with numerous U.S. and international banks and institutional debt investors and expects to secure a term sheet based on its 2022 year-end reserve report for the Wyoming Assets, which is expected to be available in late February 2023 and, will be published in late March 2023 at the time COPL files its Dec. 31annual audited financial statements.

The company is also actively negotiating and intends to issue additional 2025 bonds and warrants pursuant to a second tranche of the winter bond financing, which is expected to close in February 2023 to support its near-term capital requirements for the company and its affiliate, COPL America.

In addition to securing financing from debt and equity capital markets, the company confirms that it is actively negotiating terms for a joint venture for the long-term development of its Wyoming assets. The company plans to announce the detailed terms as soon as they are agreed.

The company is an international oil and gas exploration, development and production company actively pursuing opportunities in the United States with operations in Converse and Natrona counties in Wyoming, and in sub-Saharan Africa through its ShoreCan joint venture company in Nigeria, and independently in other countries. Headquarters are in Calgary, Alta.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.