Canadian Overseas Petroleum increases reserves, values after Cuda Energy acquisition
Canadian Overseas Petroleum Limited, an international oil and gas exploration, production and development company with operations focused in Wyoming, United States, announced a material increase to its oil and gas reserves and net revenue resulting from the acquisition of the assets of Cuda Energy LLC.
The company has received a Reserve Report prepared by Ryder Scott Company LP dated September 2, 2022 and effective as at July 31, 2022 to reflect the addition of the assets of Cuda acquired on July 26, 2022. The Report is compliant to Canadian regulatory requirements pursuant to National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (NI 51-101).
Material increases to COPL’s 2P Reserves and NPV from those as of December 31, 2022 were due to the addition of the complimentary Cuda assets and the increase in crude oil prices as at July 31, 2022, which were as follows:
- Net Working Interest (WI) 1P Reserves after royalties increased 47.2%;
- Net WI 2P Reserves after royalties increased 38.5%;
- Discounted 1P NPV increased 93.2%;
- Discounted 2P NPV increased 90.8%;
- Net 1P Reserves Unit Value increased 31.2%, and
- Net 2P Reserves Unit Value increased 37.8%.
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As of December 31, 2021
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As of July 31, 2022
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Net WI Total (1P) Proved Reserves (boe) |
11,730,222 |
17,272,220 |
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Net WI Total (2P) Proved plus Probable Reserves (boe) |
22,636,519 |
31,348,608 |
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Total 1P NPV at 10% (US$M) |
$131,893 |
$254,833 |
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Total 2P NPV at 10% (US$M) |
$257,860 |
$492,073 |
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Net 1P Reserves Unit Value at 10% (US$/boe) |
$11.24 |
$14.75 |
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Net 2P Reserves Unit Value at 10% (US$/boe) |
$11.39 |
$15.70 |
"The updated reserves of the Company and the significant increase in COPL’s 2P NPV 10% to $492 million illustrate the benefit of the timing of our acquisition of the Cuda assets in a high oil price environment. We purchased these assets for $19.15 million with the incremental reserves acquired at a cost of $2.20 per barrel,” said Arthur Millholland, President & CEO. “This is a remarkable metric to the comparative valuation of the 2P Reserves of $15.70 per barrel as at July 31, 2022. We will continue to release updates to the market as we work through our plan as presented earlier this year.”
Summary tables from the Company’s Reserve Reports as of December 31, 2021 and July 31, 2022 can be found on the Company’s website www.canoverseas.com.
