Key points:
- The COPL share price soared 54.6% after massive crude oil discovery.
- The company is fast-tracking the oil reserves identified towards production.
- Investors cheered the significant milestones, as evidenced by today’s rally.
The Canadian Overseas Petroleum Limited (LON: COPL) share price soared 54.6% after discovering oil reserves of up to 1.5 billion to 1.9 billion barrels of Oil in Place (OIP) at its Wyoming project.
The significant oil discovery blew everyone’s expectations, given that COPL got control of the project after acquiring Atomic Oil & Gas in January 2021. The initial resource estimate syndicated that the firm would generate up to 5,000 barrels daily from the lease area.
The surprise discovery resulted from the ramped-up exploration efforts within COPL’s large leasehold area in Natrona and Converse Counties, Wyoming. The company controls four Frontier Fm and one Dakota Fm sand(s).
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Investors cheered the announcement, which could see COPL generate significant revenues in the future after it starts exploiting the crude oil reserves present in the lease area.
COPL revealed today’s impressive results derived from the BFU 14-30VF exploration well drilled in August 2021, which intersected 140 feet of net reservoir sand in three (3) Frontier 1 sands and the single Frontier 2 sand. In addition, COPL recovered light oil from the lowermost Frontier 1 and the underlying Frontier 2 sand upon perforation.
The Frontier discovery is estimated to have 1.1-1.5 billion Bbl of Oil in Place, with 88% of the discovery being under the company’s leasehold.
The Dakota discovery is estimated to have 400 million bbls of Oil in Place, with 308 million bbls being under the firm’s acreage.
Arthur Millholland, COPL’s President & CEO, commented:
“We are delighted that this discovery reflects the scale of previous discoveries made over my career and, in particular, the North Sea. We estimate the Frontier element of the discovery to cover an area of approximately 51 square miles with the capacity of up to three horizontal wells per square mile, each initially producing 1,000 – 3,000 barrels per day. We plan a phased production program and have already applied for permits covering four horizontal wells. We will use internal resources to cover the initial development costs whilst full field development plans are evaluated. This discovery highlights the long-term sustainable production outlook from this outstanding asset.”
Adding:
“This is a significant oil discovery, and the size of the upside at our Wyoming asset was a surprise to us all. Conventional light oil discoveries of this magnitude have been rare in continental North America for years, if not decades. We control the majority of this discovery as it is coincident with our large contiguous lease block. We will start exploiting the discovery this year.”
COPL is likely to start producing crude oil from the above areas under the able leadership of Arthur Millholland. His experience in the North Sea has proven very useful in advancing the company’s projects.
*This is not investment advice. Always do your due diligence before making investment decisions.
COPL share price.
COPL shares surged 54.56% to trade at 31.30p, rising from Friday’s closing price of 20.25p.