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Why Canadian Overseas (COPL) Shares Surged 17% in a Month

Simon Mugo trader
Updated 26 Oct 2022

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Key points:

  • The Canadian Overseas (COPL) shares have risen 17% in the past month.
  • The company has had a slew of positive development that field the move.
  • Are COPL shares a buy at current prices? Read on to find out.

The Canadian Overseas Petroleum Limited (LON: COPL) share price has risen 17% in the past month, driven by multiple positive developments, including the recent approval by Wyoming Oil and Gas Conservation Commission (WOGCC) to flare additional gas reserves temporarily.

The COPL share price bottomed in late August and has been inching higher in an attempt to re-establish a new uptrend and has just crossed a crucial resistance level, which could lead to further gains if the price can hold above the zone. However, it is too early to tell if a new uptrend will materialise since the price is currently at the resistance zone.

Also read: Best Oil Stocks To Buy Right Now.

Earlier today, the Canadian Overseas Petroleum Company announced that it had issued 1,999,000 common shares to meet a request to convert bonds worth $400,000 in principal due 2025. In addition, at the beginning of the month, COPL issued a new investor presentation highlighting its different projects and their current states.

Some of the highlights of the investor presentation included the consolidation of its Wyoming assets following the acquisition of Cuda Energy LLC’s assets under Chapter 15 of the US Federal Bankruptcy Code on July 25, 2022, for $19.15 million.

COPL also highlighted some of its 2021 milestones, including acquiring 1,100 bbl/d light oil production in the Powder River Basin, WY, from a distressed seller for $85 million in debt and equity. The company also acquired a further 26mmbble 2P net reserves for $54 million.

The US-focused oil and gas exploration and production company further noted that it was yet to accomplish all its 2022 goals, which include refinancing COPL America’s debt to reduce its debt servicing costs.

So, would I buy COPL shares? The short answer is yes. However, I would wait for a clear break above the 17p level before buying, as I hope to catch the beginning of a new uptrend. A more conservative trade would be to wait for a break and retest the 17p level.

*This is not investment advice.

COPL share price.

COPL share price 26-10-2022
Source: IG

The COPL share price has risen 17% in the past month amid many positive developments.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading