Canadian Overseas Petroleum Limited (COPL) announces that the National Oil Company of Liberia (“NOCAL”) has written to advise of its acceptance, in-principle, of the previously announced proposed joint venture arrangement in the Production Sharing Contract (“PSC”) governing Block LB-13 offshore Liberia.
As previously announced, it is proposed that immediately following completion of the assignment of the entire interest in LB-13 from Peppercoast Petroleum to a wholly-owned subsidiary of COPL, a subsidiary of ExxonMobil Corporation will acquire operatorship and a 70% working interest in LB-13 and COPL’s wholly owned subsidiary Canadian Overseas Petroleum (Bermuda) Limited (“COPL Bermuda”) will hold the remaining, non- operating, 30% working interest. Under the terms of the PSC, parties may only assign their interests to third parties whose “technical and financial reputation is well established”.
NOCAL has written to Peppercoast advising that it accepts that the proposed joint venture between ExxonMobil and COPL satisfies in–principle the technical and financial competency requirements of the transfer provisions for the PSC subject to agreeing on proposed amendments to the PSC, and the requirement that ExxonMobil acquires its 70% interest immediately following Peppercoast’s assignment to COPL Bermuda.
The completion of the transactions are still subject to the satisfaction of other conditions but COPL said it was pleased to have reached this milestone and looks forward to working with NOCAL and ExxonMobil to satisfy the remaining conditions in the coming weeks.
COPL is an oil and gas exploration company focused in the offshore West African continental margin and the UK North Sea. COPL’s Common Shares are listed under the symbol “XOP” on the TSX Venture Exchange.
Source: COPL, April 19, 2012