Canadian Overseas Petroleum Limited , through its wholly owned subsidiary, Canadian Overseas Petroleum (UK) Limited, has signed a farm-in agreement with SSE E&P UK Limited (“SSE”) whereby COPL will pay SSE’s 16.67% share of the total drilling costs in the Lower Toad, Newt and West Columbus exploration prospects to earn 50% of SSE’s working interest in these prospects.
Under certain conditions, COPL would have the same farm-in terms with SSE for the Upper Toad appraisal prospect also.
The Lower Toad, Newt and West Columbus exploration prospects and the Upper Toad appraisal prospect are all located in Block 23/21 of the UK North Sea. COPL’s farm-in agreement with SSE was made in conjunction with certain amendments to the agreement signed in February 2011 between COPL and BG International concerning the same prospects. Among such amendments is a firm well, rather than a contingent well, to be drilled in the West Columbus prospect. COPL’s budget for its drilling program in Block 23/21 will not be impacted by the amended agreement with BG International. As a result of the agreements with SSE and BG International, COPL’s total working interest in each prospect will be 50% upon completion of drilling in the particular prospect. COPL plans to participate in the drilling of at least 6 wells during the next 15 months in the North Sea with a variety of co-venturers based on farm-in agreements signed in December 2010 and February 2011.
About the Company
COPL is an oil and gas exploration company focused in the UK North Sea, offshore Brazil and offshore West Africa. It operates in the United Kingdom through its wholly owned subsidiary, Canadian Overseas Petroleum (UK) Limited, a company registered under the laws of England and Wales. COPL’s Common Shares are listed under the symbol “XOP”.
[mappress] Source:COPL , June 8, 2011;