Shares in Canadian Overseas Petroleum Ltd (COPL) surged on Monday, September 12, after the company reported a ‘material’ increase to its oil and gas reserves.
Shares in the London-based oil and gas exploration and development company focused on Wyoming were trading 6.2 percent higher at 15.61 pence per share in London on Monday morning.
Canadian Overseas received a reserve report prepared by Ryder Scott Company LP to reflect the addition of Cuda Energy LLC assets. Canadian Overseas acquired Cuda in July 2022.
Net working interest total proved reserves were reported at 17.3 million barrels of oil equivalent in July 2022, up from 11.7 million boe in December 2021, an increase of 47 percent. Proved plus probable assets increased 39 percent to 31.3 million boe from 22.6 million boe over the same period.
Canadian Overseas reported the net present value for the proved assets improved by 93 percent to $254.8 million from $131.9 million and by 91 percent to $492.1 million from $257.9 million for the proved plus probable value.
The improved reserves resulted from the company’s acquisition of the assets of Cuda and the increase in crude oil prices.
Arthur Millholland, president and chief executive officer, commented: ‘The updated reserves of the company illustrate the benefit of the timing of our acquisition of the Cuda assets in a high oil price environment.
“We purchased these assets for $19.2 million with the incremental reserves acquired at a cost of $2.20 per barrel. This is a remarkable metric to the comparative valuation of the proved and probable reserves of $15.70 per barrel as of July 31, 2022.”
For more information visit www.canoverseas.com
