Canadian Overseas Petroleum Ltd. (COPL), has warned that it must raise funds before March 31st, following disruptions to operations at its Wyoming and Barron Flats Shannon units (BFSU). Production was stopped in 2023.
BFSU production was not re-started until 30 January 2023. COPL stated that as a result, its US affiliate may not be able to meet the upcoming covenants of its senior credit facility unless it secures new financing.
COPL stated that it doesn’t have enough working capital to meet its current needs and will require additional financing by March 2023 in order for it continue trading.
COPL said it is working with its advisors to obtain a senior debt facility prior to that time.
According to the company, it is actively negotiating additional 2025 bonds and warrants in order to issue a second tranche Winter Bond financing. This will be completed in February 2023 to meet its short-term capital needs.
The shares fell 66% to 5.55p
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.