CSE: XOP LSE: COPL Investor Summary May 2019
Why invest in COPL? CSE: XOP LSE: COPL • Exposure to significant existing offshore oil and gas fields in West Africa • Management have a proven track record executing a similar project in the North Sea • Key offshore Nigeria asset (OPL 226) has a best estimate of 2C contingent resources of 16 million bbls (gross) and Unrisked prospective resources of 533 million barrels (gross) of oil • First of four appraisal production wells expect to start work in Q3 2019 • OPL 226 is a multi-play potential and could generate c.60,000 bpd under a full development scheme • Project financing for OPL 226 in place from Trafigura and the Mauritius Commercial Bank subject to conditions precedent • Exposure to onshore Mozambique gas asset – negotiations with Government ongoing re. production sharing contract www.canoverseas.com | 2
“We have made significant progress over the last year, having secured financing … which will allow us to capitalise on the significant production opportunity that our offshore Nigerian asset represents. With the potential for significant near-term production at OPL 226 … scheduled to commence drilling by mid-2019 ... we enter 2019 with renewed optimism.” (Arthur Millholland, CEO) RNS on 28.1.19 re. 2018 Year-end Update and Outlook for 2019
COPL Investment Proposition CSE: XOP LSE: COPL • Exposure to significant existing offshore oil and gas plays where discoveries have been made but lie dormant in West Africa • Management have a proven track record: they are replicating an exploration strategy executed successfully at Oilexco Inc in the North Sea • Focused on a region which has similar geological traits to the North Sea but potentially larger reserves • Key asset is OPL 226 offshore Nigeria with a best estimate of 2C contingent resources of 16 million bbls (gross) and Unrisked prospective resources of 533 million barrels (gross) of oil • Five wells have been drilled with three oil and two gas discoveries; the first oil discovery was made in 2001 • First phase of field development of four production wells forecast to commence in Q3 2019 each producing 6-10,000 bpd • First phase will provide cash flow for future development based on an estimated production of c.30,000 bpd by end 2020 • OPL 226 is a multi-play potential and could generate c.60,000 bpd under a full development scheme • ShoreCan has conditional project financing for up to US$50m for OPL 226 from Trafigura and the Mauritius Commercial Bank • Project finance is contingent on a production test delivering 6,000 bpd for 21 days and a minimum of US$20 million equity investment by ShoreCan • Advanced discussions with 3 global service providers regarding the provision of services for the work programme • Partnered with domestic company satisfying local Nigerian legal requirements • COPL has strong government stakeholder relationships • Nigeria regulators have conditionally approved work programme / budget and granted a two year extension until Oct 2020 • Exposure to onshore Mozambique gas asset – discussions with Government ongoing re. production sharing contract Opportunity to invest at ground floor level in fast track development & production asset scheduled to produce 60,000 bpd Canadian Overseas Petroleum Limited shares were listed for trading on the London Stock Exchange (LSE: COPL) in April 2014 and are also listed on the Toronto Stock Exchange Venture Canadian Overseas Petroleum Limited shares were listed for trading on the London Stock Exchange (LSE: COPL) in April 2014 and are also listed on Exchange (TSXV: XOP) www.canoverseas.com | 4 the Canadian Securities Exchange (CSE: XOP)
Building an African Portfolio CSE: XOP LSE: COPL COPL strategy • Leverage management expertise and experience to grow operational footprint via JV with Shoreline Energy and its SPV ShoreCan NIGERIA OPL 226 • Partner with local indigenous companies to gain entry to the country on the ground or partner with other West African operators to explore for, appraise and/or develop projects • Preference for prospects offering near term cash flow potential or ability to provide technical partnership • Focus on desirable exploration and development prospects that exhibit similar seismic and geological characteristics to nearby existing discoveries or producing fields ShoreCan Assets and Activity: MOZAMBIQUE PT5-B www.canoverseas.com | 5
Management & Technical Team CSE: XOP LSE: COPL In-depth industry expertise • Significant offshore oil exploration and development project experience • Worked together for last 13 years Between 2002-08 at Oilexco Inc, management drilled a combined 120 exploration, appraisal and production wells in the North Sea. The group discovered, appraised and developed the adjoined Brenda and Nicol oil fields at a 100% WI as a subsea development at an initial production rate of 35,000 bpd in 500 feet of water COPL Oilexco Resources Contingent Resources 2P Reserves 2C-16 million barrels gross 60 million barrels Prospective Resources 3P Reserves 237.1 million barrels gross 90 million barrels Drilling to first oil 36 months timeframes Production potential 60,000 bpd Production Commenced 35,000 bbl/d (net) Government stake Royalty and Tax Tax www.canoverseas.com | 6
Board & Management Team CSE: XOP LSE: COPL Management Board - Executive Aleksandra Owad: CFO Arthur Millholland: Director, President and CEO • Chartered accountant in Canada (CPA, CGA) and a Fellow of the Association • Was the founder, CEO and a Director of Oilexco Inc of Chartered Certified Accountants in UK (FCCA, UK) • • 12 years of industry experience as a CFO, Chief Accounting Officer/Controller Professional geologist with over 30 years experience in the oil and gas industry • 10 years of financial advisory and audit services at KPMG • Worked in a variety of regions including the UK North Sea, Canada, Gulf of Mexico, • Holds a Master of Economics Degree from the Warsaw School of Economics USA, South America and West / North Africa Board - Non-Executive Rod Christensen: Vice President Exploration and Exploitation • Professional Geologist with 38 years experience Harald Ludwig: Independent Director & Chairman of the Board • Previously Senior VP, Exploration and Development at Oilexco • President of Macluan Capital Corporation, a diversified private equity • Involved in numerous discoveries and appraisals in the UK Central North Sea investment company • Director of Lions Gate Entertainment Corp (NYSE), Seaspan (NYSE), West Fraser Timber (TSX) Dr. Richard Mays: Vice President Business Development & General Counsel • Serves as a member of the advisory Board of Tennenbaum Capital Partners, LLC • Extensive Legal, Commercial, Oil and Gas experienced over 30 years • William Astor: Independent Director Previously Exec Chairman of Blackstar Petroleum and Peppercoast Petroleum Dr. Richard Mays • Director of Networkers plc (AIM), Tavistock Investments plc ( AIM ), Silvergate • Former Professor in Law and Depute Dean at Aberdeen Business School Media Ltd (UK Private) and formerly Chorion plc (until 2011) Ken Halward: Manager Reservoir Development • Massimo Carello: Independent Director Former VP of reservoir development for Oilexco, played a key role in • developing Brenda and Nicol fields Over 30 years of international senior management and board level experience • • Director of Orsu Metals Corp (TSX) and Canaccord Financial Inc. (TSX, LSE) Over 30 years of diversified experience in Canada, UK North Sea and N. Africa • Previously a Director of Uranium One, Urasia Energy Ltd, Anker plc and • Prior to joining Oilexco in 2005, Ken held a variety of technical and supervisory President and CEO of Diners UK Ltd positions at Imperial Oil, Wascana Energy, Alberta Energy Company, and the Arabian Gulf Oil Company (AGOCO) John Cowan: Independent Director Nick Pillar: Manager Geophysics • Over 40 years experience in the oil and gas exploration and production industry • Geoscientist with a BSc in Applied Geology and >30 years industry experience • Previously founder of two Canadian E&P companies • Nick Pillar Chief Geophysicist at Enterprise prior being taken over by Shell • Operations Director at Ikonscience, a niche rock physics softwarecompany www.canoverseas.com | 7
COPL / Shoreline Joint Venture
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