Canadian Overseas Petroleum Limited (LSE:COPL, CSE:XOP, OTC:VELXF) is moving forward with a process that could kickstart the development of its Cole Creek property in Wyoming, as indicated by a signed letter of intent (LoI).
The LoI begins a period of exclusivity with the yet-to-be-named potential partner, following confidential discussions that began in October. It’s anticipated that the parties will now shift their focus towards finalizing a definitive agreement to solidify the partnership and bring the project to fruition.
COPL’s CEO Arthur Millholland mentioned in a statement, “We have dedicated substantial effort to this project.” He explained that the company first saw the potential in Cole Creek prior to completing the Atomic acquisition in March 2021.
He also stated, “This LoI marks the completion of the first stage in a process we embarked on last October after acquiring Cuda. The company that has joined us in this LoI is the best collaborator among the ones we evaluated.
“COPL brings a wealth of experience and knowledge of Cole Creek, including managing the initial phase of the gas-enriched enhanced oil recovery (EOR) project at the neighbouring Barron Flats Shannon Unit.
“This EOR expertise can be directly leveraged in Cole Creek, given the similar reservoir characteristics. We are eager to keep our stakeholders updated as things progress.”
Currently, Cole Creek has about 17 pre-drilled oil wells, along with the potential for more developmental drilling.
On its website, COPL notes the “significant upside” that could be achieved by redeveloping the site using horizontal wells.
Previous projections for the project indicated a production rate between 3,500 to 4,000 barrels per day, a figure that could be boosted via miscible flood operations.
