Canadian Overseas Petroleum Ltd Announces Equity Financing and Further Financial Agreements

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COPL Announces $4 million Equity Financing, Hedge & Sr. Debt Restructuring to Ensure Funding beyond Q1-2024

CALGARY, AB / ACCESSWIRE / October 6, 2023 / Canadian Overseas Petroleum Limited and its affiliates ("COPL" or the "Company") (CSE:XOP )(LSE:COPL ), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona counties, Wyoming, USA, announces the completion of the critical equity financing and further financial agreements that positively enhance the financial strength and liquidity of the business. Their collective impact is to fully fund the business through Q1-2024 and reduce 2023 and 2024 liabilities in excess of $13.5 million. In addition, the Company has removed over $2 million of costs during 2023 and has a further $1 million of costs that are expected to be removed before the end of 2023.

Highlights

The Company is excited by the high degree of support and mutual alignment it has achieved amongst its leading capital providers and stakeholders enabling this pivotal financing and restructuring package:

· Upsized equity financing of $4 million at a price of 2.6 pence per share, or +30% premium to the closing share price on 5 ^th October. The funding was provided entirely by the Company's leading equity and convertible bond investor Anavio Capital Partners LLP ("Anavio").

· Senior Debt and Hedge Restructuring that frees up over $13.5 million of cash flow to COPL America through 2024.

o COPL America has full exposure to WTI pricing, with hedge losses crystallised at $10.96 million and repayable at maturity in March 2025 further to a restructuring of its crude and butane swaps with, the 'Swap Provider', an intercreditor to the Senior Credit Facility. Offsetting swaps were entered, and an up-front principal repayment to Swap Provider of $500,000 is to be made, with the remaining swap liability of $10.5 million maturing in March 2025.