Canadian Overseas (COPL) Shares Rose 8.42% on Financing Update

The Canadian Overseas Petroleum Limited (LON: COPL) share price rose 8.42% after announcing that it had secured an amendment to its Senior Credit Facility, which provided for the waiver of its covenant tests as of 30 September 2023.

However, the waiver will also come into effect after the company closes the financing facility it has entered into with Anavio Capital Partners LLP by October 6, 2023. COPL is on track to close the financing before the 6th October 2023 deadline.

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Investors cheered the news that gives COPL additional financial leeway even as it continues operating its oil and gas assets in Wyoming, US. Despite the company having Canada as part of its name, it has no operations within the country, with all its operations being in the United States. 

Canadian Overseas Petroleum Limited (COPL) operates in the Converse and Natrona Counties, Wyoming, USA. The company’s operations are one of the most environmentally friendly. The firm has minimal gas flaring and methane gas emissions and sources its electricity from a neighbouring wind farm. 

Therefore, the company operates the Barron Flats Shannon (Miscible) Unit 85% WI, the Cole Creek Unit 100% WI, and holds Barron Flats Federal (Deep) 85% WI and non-unitized lands 100% WI.

Since early September, COPL shares have fallen significantly after encountering significant resistance at the 4.50p to 5.00p zone. The company’s shares have bounced thrice off the resistance zone as sellers emerged, pushing prices lower each time. 

The COPL share price is in a downtrend but shows signs of bottoming out. However, only time will tell whether the stock will have a bullish trigger that could increase prices. Today’s move was minimal as the stock had given up most of its gains at publishing. 

I would closely watch COPL shares, waiting for a higher reversal to take bullish trades up to the resistance zone. 

Canadian Overseas (COPL) share price. 

The COPL share price rose  8.42% higher to trade at 2.96p, from Friday’s closing price of 2.73p.