Canadian Overseas Petroleum Ltd has named a new CEO and announced that they are fully funded until Q1 2024, following a US$3.5 million equity boost.
This capital raise involves Anavio Capital Partners buying shares at 4p each, while about US$5.0 million in liquidity is freed up through hedge restructuring.
The financial arrangement should be finalized by September’s end. COPL intends to use the funds to support production growth through Q1 2024 and to finalize the earlier-discussed joint venture talks.
In a recent July announcement, COPL revealed a letter of intent (LOI) to enter an exclusive agreement with an undisclosed partner to develop its Cole Creek site in Wyoming.
Arthur Millholland, the current CEO, will be succeeded by John Cowan, a COPL board member since 2015 and interim chair since this past June. With over four decades of experience, Cowan has served as a CEO or board member for multiple private and public upstream oil and gas firms.
Tom Richardson, formerly a non-executive director, will take on the role of chairman. Meanwhile, Millholland will transition to the position of president for COPL’s subsidiary, COPL America Inc.
In addition to the US$2.0 million in cost savings realized in 2023 and an additional US$1.0 million identified for reductions by the end of 2023, a US$0.5 million savings was settled upon with the board members forgoing their 2023 cash compensation.
Lastly, COPL will offer Anavio the option to buy 69,721,116 common shares at 4p per share, valid until August 26, 2027.
