Canadian Overseas Petroleum
Affiliate Launches Foreclosure Proceedings
Against Cuda Energy LLC
London, United Kingdom; Calgary, Canada: August 13, 2021 – Canadian Overseas Petroleum Limited (“COPL” or the “Company”) (XOP: CSE) & (COPL: LSE), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona Counties, Wyoming, USA, announces that its affiliate Southwestern Production Corp. (“Southwestern”), operator of the Barron Flats Shannon Miscible Flood Unit (the “Barron Flats Unit”), has filed a law suit in the State Court of Wyoming, Converse County, against the following named defendants: Cuda Energy LLC (“Cuda”), a wholly owned subsidiary of Cuda Oil and Gas Inc. (CUDA:TSXV), Bridging Finance, Inc. (“Bridging”), and Tallinn Capital Energy L.P. (“Tallinn”), to seek a Judicial Foreclosure on Cuda’s non operated working interest in the Barron Flats Unit.
On July 8, 2021 Southwestern filed a Statutory Lien in the State of Wyoming, Converse County against Cuda’s interest in the Barron Flats Unit in the amount of US$1,929,746.48. This amount represents the cumulative operating arrears of Cuda for the month ending May 31, 2021 as reflected on Cuda’s June 30, 2021 Joint Interest Billings.
On July 26, 2021 Southwestern filed a Claim (the “Claim”) in the Eighth Judicial District Court, State of Wyoming as Plaintiff against Cuda, Bridging, and Tallinn as defendants. Southwestern’s Claim seeks the following heads of relief: a judicial foreclosure order against the defendants of the Southwestern Liens on Cuda’s interest in the Unit; an award of damages for breach of contract by Cuda; a quantum meruit or unjust enrichment judgment against Cuda; damages for a breach of promissory estoppel against Cuda; and a declaratory judgment as to the lien priority against Bridging and Tallinn to affirm Southwestern’s first lien priority on Cuda’s security against the Barron Flats Unit. Cuda received a copy of the Court Stamped Claim by email on July 27, 2021 and subsequently accepted service of the Claim on August 12, 2021.
Cuda’s current cumulative operating arrears owed to Southwestern for the month ending June 30, 2021 amounts to US$2,495,172.68 as reflected on Cuda’s July 2021 Joint Interest Billings. It is noted that the Claim against Cuda will be subsequently amended to reflect Cuda’s ongoing cumulative arrears, and any further resulting damages.
Arthur Millholland, President & CEO, commented:
“It is unfortunate that our Southwestern affiliate has had to resort to this action against Cuda, as their interest in the Barron Flats Shannon Miscible Unit is the principal asset of Cuda Oil and Gas Inc. Regrettably, it appears Cuda Oil and Gas Inc. are insolvent, and this is the fundamental cause of the issue. We and our advisors have had ongoing discussions with the Management and certain Independent Directors of Cuda Oil and Gas Inc., the parent of Cuda and their other secured creditors: Bridging through their Receiver, PWC Canada; and Tallinn to actively resolve this current issue and to address similar ongoing issues that we foresee with Cuda’s continued participation in the Barron Flats Unit. The action we have undertaken in the Wyoming State Court is a measure of our frustration as to the direction of the discussions that we have had to date with Cuda’s parent Cuda Oil and Gas Inc. and its creditors in order to find an amicable resolution. Thus we have deemed the commencement of legal proceedings necessary to protect the ongoing interests of Southwestern”.
A copy of the Claim and the Waiver and Acceptance of Service can be viewed under the Company’s name at www.sedar.com .
About the Company:
COPL is an international oil and gas exploration, development and production company actively pursuing opportunities in the United States with operations in Converse County Wyoming, and in sub-Saharan Africa through its ShoreCan joint venture company in Nigeria, and independently in other countries.
Mr. Arthur Millholland, President & CEO
Mr. Ryan Gaffney, CFO
Canadian Overseas Petroleum Limited
Tel: + 1 (403) 262 5441
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned