CALGARY, Nov. 9, 2011 /CNW/ - Canadian Overseas Petroleum Limited
("COPL" or the "Company") (XOP: TSX-V) has made an oil discovery at its
Esperanza exploration prospect located in Block 22/15 of the UK Central
North Sea. Block 22/15 is a Second Round license.
The 22/15-4 well, operated by BG Group ("BG"), was drilled by the Ocean
Nomad semi-submersible drilling rig to a total depth of 9,427 feet. A
reservoir section was encountered in the Paleocene Forties sand at a
depth of 8,677 feet, and a minimum total of 52 feet of net pay from a
minimum gross section of 73 feet was penetrated by this well. Data
obtained from well logs, coring and wireline pressure measurements
indicate that the reservoir fluid is light gravity oil. Oil samples
were also successfully extracted from the wireline downhole
sampler. COPL and BG have decided to proceed with drill-stem testing
the well which is expected to take 10 days.
Once testing has been completed and the drilling vessel has been
released from the site, COPL will have 120 days to decide whether it
will exercise its right to purchase a 50% interest in the entire block
from BG, which includes the Banks discovery, for US$15 million.
Arthur Millholland, President and CEO of COPL, commented: "We are extremely pleased with the results from the Esperanza well and
look forward to continuing our work with BG in the block."
About the Company
COPL is an oil and gas exploration company focused in the UK North Sea,
and the offshore Liberian continental margin. COPL's Common Shares are
listed under the symbol "XOP" on the TSX Venture Exchange.
Forward Looking Statements
This press release may contain forward-looking statements based on
COPL's current expectations and assumptions as to a number of factors
including weather, regulatory approvals and general economic and
industry conditions. If those expectations and assumptions prove to be
incorrect, or factors change, then actual results could differ
materially from the forward-looking statements contained in this press
Generally, statements included in this press release that address
activities, events or developments that COPL expects, believes or
anticipates will or may occur in the future are forward-looking
statements. Such forward-looking statements involve substantial known
and unknown risks and uncertainties, certain of which are beyond COPL's
control, including: the impact of general economic conditions in the
areas in which COPL operates, civil unrest, industry conditions,
changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, fluctuations in
commodity prices, foreign exchange or interest rates, stock market
volatility and obtaining required approvals of regulatory authorities.
In addition there are risks and uncertainties associated with the oil
and gas industry, therefore COPL's actual results, performance or
achievement could differ materially from those expressed in, or implied
by, these forward-looking statements will transpire or occur, or if any
of them do so, what benefits, including the amounts of proceeds, which
COPL will derive therefrom. Such statements are based on assumptions
made by COPL based on its experience perception of historical trends,
current conditions, expected future developments and other factors it
believes are appropriate in the circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Canadian Overseas Petroleum Limited
For further information:
Mr. Arthur Millholland, President and CEO
Rob Elgie, Manager of Investor Relations
Pelham Bell Pottinger Public Relations
James Henderson, Managing Director or Mark Antelme
Phone: +44 (0) 207 861 3160