Canadian Overseas Petroleum (CVE:XOP) has confirmed it will be the next addition to London’s ever vibrant oil and gas sector.
The explorer, which this year is partnered with ExxonMobil in high impact drilling, will begin trading on the main market this Friday.
This comes after the company raised £2.4mln, through the issue of 17.7mln new shares priced at 13.5p each. The injection of cash will be used for general working capital.
COPL doesn’t need money for the upcoming drilling, offshore Liberia, as its 17% stake in the project is programme is ‘carried’ with US$120mln of the well costs being paid for by the American oil major.
The target of the well, a layered fan system analogous with Ghana’s renowned play-opening Jubilee field, could be considered large by anybody’s measure. Prospective resources are estimated between 1.8bn and 4.2bn barrels (P90 to P10).
COPL intends to expand upon its existing portfolio in West Africa. It has been actively looking at opportunities in Angola and Nigeria; for the latter it was invited to bid alongside indigenous consortiums in the marginal field round.
But the upcoming programme offshore Liberia remains the dial mover.
Drilling is scheduled to start towards the end of the first half of 2014, so preparatory news flow will start to emerge in the coming months - providing possible catalysts for investors in London.