Canadian Overseas Petroleum Ltd (LSE:COPL, CSE:XOP, FRA:V9LA, OTC:VELXF) shares are set to resume trading on the London Stock Exchange on Tuesday following its transformational reverse takeover of Atomic Oil & Gas.
The deal reinvents COPL as “a versatile oil and gas exploration and production and development company”, highlighted chief executive Arthur Millholland.
“I am delighted today to see the company’s shares readmitted to trading on the London Stock Exchange following the completion of the Atomic acquisition in March and the subsequent readmission process which have together been an eight-month cumulative journey in the making,” Millholland said.
“I would like to thank our investors for their patience during this time and look forward to the opportunities and future the company has as a result of now becoming a versatile oil and gas exploration and production and development company as a result of the Atomic acquisition.”
The game changing Atomic deal was valued a total of US$54mln.
It brought producing assets in the US state of Wyoming, the Barron Flats Shannon Unit (57.7% owned by Atomic) and Cole Creek Unit (66.7% owned by Atomic).
The two fields have 31.1mln barrels of proved and probable reserves and are at the start of a 40-plus year life. The company noted that the acquisition offers a return on investment in excess of 50%, with the deal pitched at an acquisition cost of US$2.18 per barrel versus a net present value of US$7.52 per barrel.
Barron Flats produces around 1,400 barrels per day (bpd), up from 200 bpd in 2017, and is forecast to reach a plateau rate of 5,000 bpd gross by 2022 whilst Cole Creek is forecast to have a 3,500 bpd plateau by 2026.