Canadian Overseas Petroleum announces "significant progress" in funding for Nigerian asset

West African focused oil and gas exploration and development firm Canadian Overseas Petroleum (COPL) announced that it had made "encouraging progress" towards securing a funding deal for its OPL 226 offshore development project on the southwestern coast of Nigeria in the Gulf of Guinea.

COPL said it was still confident that an appraisal well would be drilled at the NOA-1 oil prospect in either late 2017 or early 2018 as previously announced.

Arthur Millholland, president and chief executive of COPL, said "At present, we remain focused on developing our highly attractive oil appraisal and development project in OPL 226, offshore Nigeria. The initial work program will be to drill an appraisal well at the NOA-1 oil discovery and bring it into production through an Early Production Scheme. The drilling of up to three additional similar wells on the NOA Structure would follow on from this."

In terms of the funding, he added, "COFARCO SAS of Paris, France, and Zeus Capital of London, the two Investment Banks we are engaged with, specialize in project financing of African energy ventures and we have great confidence that they will secure the necessary funding."

The company also noted that it had planned to approach Liberian authorities in regards to a contract extension on its Block LB-13 exploration area, which it shares with ExxonMobil, after the previous agreement expired on 25 September.

"We look forward to updating shareholders with the next steps that we take with regards to evaluating other leads mapped out on block LB-13 and other opportunities we see along the Liberian continental margin," Millholland said.

As of 0850 BST, shares had dipped 14.33% to 1.43p.