With high profile drilling on the horizon and the possibility of new opportunities COPL remains one to watch for investors.
Canadian Overseas Petroleum Limited (LON: COPL, CVE: XOP) has highlighted that the upcoming ExxonMobil operated exploration well in Liberia is the group’s short-term focus.
In an investor update for the second quarter COPL added that it also continues to identify, evaluate and pursue exploration and development opportunities in Nigeria, Equatorial Guinea and other West African countries.
It added that it is looking at offshore opportunities in areas where its seasoned technical team has strength.
Arthur Millholland, chief executive, said: “The Company’s strategy is to grow our international oil and gas business offshore sub-Saharan Africa and elsewhere in the world by farming into, and/or acquiring interests in, exploration, unappraised and/or undeveloped assets as well as in producing assets using the expertise and experience of our senior management team.
“COPL’s short-term operations will focus on working with ExxonMobil to progress the activities on the future drill locations in Liberia and working towards successfully concluding a variety of new opportunities available to the Company in sub-Saharan Africa.”
Drilling with Exxon in Liberia
COPL is teamed up with partner Exxon to drill the Mesurado-1 prospect offshore Liberia, with a 17% carried stake in the well.
Interest in the well is high. Not only is it historic, as the first well offshore Liberia, but it is also the one of the latest to test a transatlantic exploration play.
It is what it known as a conjugate play. Offshore Liberia, in the Atlantic margin, the well will explore the same type of reservoir targets that have already been discovered on the other side of the ocean.
The ancient geology that is now thousands of miles and an ocean apart were at one point in time connected. As those following the sector will know such plays have a key theme in recent years – notably it is the basis of discoveries offshore Ghana, Canada, and Guyana to name a few.
Here, offshore Liberia, the analogous discovery is Liza – a discovery offshore Guyana which is so far estimated to host 1.4bn barrels.
Mesurado has been described by experts as Liza’s “twin sister”.
COPL share of well costs are covered by Exxon, up to a maximum of US$120m.
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