CALGARY, Jan. 24 /CNW/ - Canadian Overseas Petroleum Limited ("COPL" or
the "Company") (TSX-V: XOP), through its wholly owned subsidiary,
Canadian Overseas Petroleum (UK) Limited, has received from Faroe
Petroleum plc the transfer of 50% of License P.1161 for Blocks 206/5a
and 206/10a, which include the Fulla exploration prospect and the Freya
discovery. The completion of the transfer of the license is a result
of COPL fulfilling a number of obligations as per a farm-in agreement
with Faroe. The U.K. Department of Energy and Climate Change ("DECC")
has formally approved transferring 50% of the license to COPL. The
DECC has also agreed to extend the term of the license to such a date
that the parties can begin drilling a well in the Fulla prospect, which
is expected to occur before the end of September 2011. Under the terms
of the farm-in agreement, COPL is required to pay 60% of the drilling
costs for the Fulla exploration well.
Blocks 206/5a and 206/10a are located in the "West of Shetland Islands"
region approximately 10 kilometers northeast of the Clair field, which
has recently been producing between 30,000 to 49,000 barrels of oil per
day. Both Fulla and Freya appear to have similar seismic and
geological characteristics to the Clair field.
About the Company
COPL is an oil and gas exploration company focused in the UK North Sea.
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", and its Subscription Receipts under the symbol
"XOP.R", both of which trade 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 access to capital, regulatory approvals, drilling intentions,
intended acquisitions 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 release.
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