Canadian Overseas Petroleum Limited said it continued to focus on appraisal drilling programme at the OPL 226 project, offshore Nigeria, where work is slated in early 2018.
The company, in a third quarter update, noted that it is working with investment banks to source funds for the proposed programme and it has held talks with potential contractors and suppliers for the anticipated programme.
Meanwhile, Funding would be at project level, not company equity.
Canadian Overseas Petroleum had booked an impairment of USD15.6 million after surrendering rights to licence offshore Liberia.
Arthur Millholland, COPL chief executive, highlighted that the appraisal programme would potentially precede a full field development project.
“We continue to focus on developing our attractive oil appraisal and development project in OPL 226, offshore Nigeria,” Millholland said.
“The initial work program will be to drill an appraisal well to the NOA-1 oil discovery and place it on production through an Early Production Scheme. This would be followed by the drilling of up to three additional similar wells on the NOA Structure. “
Millholland added: “Two investment banks have been engaged to assist our subsidiary ShoreCan with the financing required to commence drilling at OPL 226.
“Unlike equity financings that are straightforward and fast, project financings are complex and require a lot more paperwork and legal review.
“We hope to update the market and our shareholders at an early opportunity.”