The Canadian Overseas Petroleum Limited (LON: COPL) share price rallied 29.76% after signing a Non-Binding Letter of Intent (LOI) for a joint venture with an established energy company (JVCo) to exploit and develop the oil resources and reserves at its Cole Creek project in the Converse and Natrona Counties Wyoming.
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COPL America, also referred to as COPLA, signed the joint venture letter of intent (LOI), as a precursor to the negotiation of definitive agreements for a Joint Venture (the JV) to develop and exploit the oil reserves and resources at its Cole Creek project in Converse and Natrona Counties Wyoming.
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The letter of intent grants exclusivity to JVCo for a specific period to allow the two companies to negotiate terms and agree on the structure of the JV, including the consents required by COPLA. The LOI is governed by a confidentiality agreement that COPLA and the JVCo entered in October 2022.
The confidentiality provisions are set to end concurrently with the termination of the exclusivity period, among other contractual conditions. The JV agreement does not include COPL’s Barron Flats Shannon miscible flood EOR project.
COPL’s President and CEO Arthur Millholland commented: “We have been working on this project for some time. We first identified the potential at Cole Creek before completion of our Atomic acquisition in March 2021. Our acquisition of the complementary assets of Cuda in July 2022 gave our Company full control of the Cole Creek project. This LOI is the first step completed in a process initiated in October of last year after the Cuda acquisition. The company that has entered into the LOI with us is the best partner we could have of the ones we have considered.”
“Our Company brings considerable experience and understanding of Cole Creek, including operating the early stage enriched gas miscible EOR project at the neighbouring Barron Flats Shannon Unit. This EOR experience can be directly applied to Cole Creek as they have many similar reservoir characteristics. We look forward to updating our stakeholders when able as the process proceeds.”
*This is not investment advice.
Canadian Overseas (COPL) share price.
The Canadian Overseas (COPL) share price rallied 29.76% to trade at 2.18p, from Friday’s closing price of 1.68p.
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