The Company believes that the Executive Order signed by the President of
There will be a review of existing leases and permitting for oil and gas operations conducted on Federal lands.
There will be no ban on Hydraulic Fracking ('Fracking').
Legacy suspended wells on Federal Leasehold are to be abandoned to reduce methane emissions.
Operations on Federal lands shall be conducted with regards to the nation's climate objectives.
Effect on Atomic
The Company believes the Executive Order signed today by the President of
Atomic requires no additional Federal Oil and Gas Leases to conduct it operations.
Atomic's Federal Leasehold is in good standing.
Atomic holds operating working interests in approximately 52,250 acres of contiguous leasehold (the 'Leasehold') in the
The Leasehold is a combination of the following: Fee Simple Freehold Leases; State (
Within the Leasehold there are three Units: Two (2) production Units being the Barron Flats Shannon Miscible Flood Unit (57.7% WI) and the Cole Creek Unit (66.7%); as well as one unitized exploration area - the Barron Flats Federal Unit (deep).
The purpose of the formation of these Units is to align the various Lessors' interests through the terms of their respective leases with those of the Working Interest holders (the 'Lessee's') whose working interest is defined through the Unit. Atomic has secured drilling permits required to continue to conduct the majority of its operations on the critical Federal Leasehold. If in the future operations are restricted from the surface of Federal Leasehold, operations can also be conducted from adjoining Fee Simple or State Leasehold directionally if there were to be a hinderance of such operations outside of the newly stated policy on Federal Leasehold.
The Atomic assets have new infrastructure and direct access to pipeline with no legacy abandonment or reclamation liabilities.
The Barrons Flat Unit facilities are state-of-the-art, environmentally responsible facilities with zero gas flaring, minimal methane emissions, with required electricity sourced from an adjacent wind farm.
About Atomic
Atomic is a closely-held private oil and gas company incorporated under the laws of the
Benefits to COPL from the Atomic acquisition
COPL is acquiring 31.1 mm Barrels of Oil Equivalent ('BOE') (24.7 mm BOE net after royalties) of Proved and Probable Reserves ('2P') (Ryder Scott Reserve Report dated
Atomic has two operated oil fields: the Barron Flats Shannon Unit (57.7% WI) and Cole Creek Unit (66.7% WI) located in the
Current production rate of 1,400 bbls / d (gross) rising to 5,000 bbls/d (gross) in 2022 and c.7,000 bbls/d (gross) in 2026 (2P reserve case, Ryder Scott Report).
Produced crude oil is light (40-degreeAPI) and sweet.
Barron Flats Shannon Unit (57.7% WI) : Natural Gas and Propane Miscible Flood commenced
Cole Creek Unit (66.7% WI) : Current field limits defined by drilling, Miscible Flood to be commenced upon plateau of Barron Flats Shannon Unit production. Forecast production rate plateau of c. 3,500 bbls/d (gross) under the 2P reserves case (Ryder Scott Report) in 2026.
The Atomic assets have new infrastructure and direct access to pipeline with no legacy abandonment or reclamation liabilities.
The Barrons Flat Unit facilities are state-of-the-art, environmentally responsible facilities with zero gas flaring, minimal methane emissions, with required electricity sourced from an adjacent wind farm:
Produced associated gas is reinjected into the reservoir along with the purchased natural gas and propane miscible flood injection stream.
The opportunity to undertake this acquisition became available only as a result of the Covid-19 environment and the drop in oil prices during 2020.
The acquisition has a high NPV asset at a price well below traditional metrics : Proved(P1) value of
Note: a summary of the Ryder Scott Report in accordance with Canadian Oil and Gas Evaluation Handbook Guidelines (COGEH) is located within COPL's
Note: The valuation in the Ryder Scott Report dated
The acquisition presents a high ROI > 50%;
COPL receives material leverage via the transaction, due to enhanced scale and funding.
On completion, the operative staff of
About COPL
COPL is an international oil and gas exploration, development and production company actively pursuing opportunities in
Contact:
Tel: + 1 (403) 262 5441
The Common Shares are listed under the symbol 'XOP' on the CSE and under the symbol 'COPL' on the
This news release contains forward-looking statements. The use of any of the words 'initial, 'scheduled', 'can', 'will', 'prior to', 'estimate', 'anticipate', 'believe', 'should', 'forecast', 'future', 'continue', 'may', 'expect', and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based on certain key expectations and assumptions made by the Company, including, but not limited to, the ability to finalise the necessary funding for completion of the Atomic acquisition and financing for continued operations, delays or changes in plans with respect to exploration or development projects or capital expenditures. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements since the Company can give no assurance that they will prove to be correct since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties most of which are beyond the control of
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