Business

Canadian Overseas Petroleum Initiates Restructuring Effort Amid Shift in Business Operations

LONDON, CALGARY, AB, March 21, 2024 – Canadian Overseas Petroleum Limited ("COPL" or the "Company"), a significant player in the international oil and gas sector, has set a precedent in its recent business operations by actively reorganizing its financial and structural affairs. On March 8, 2024, the company (listed on the Canadian Securities Exchange as XOP and on the London Stock Exchange as COPL), along with its affiliates which comprise the "COPL Group," successfully secured an initial order (known as the "Initial Order") from the prestigious Alberta Court of King's Bench. This order was procured in accordance with the well-established Companies' Creditors Arrangement Act.

To further stabilize and enhance its corporate structure, the COPL Group approached the Court again and, on March 19, 2024, was granted the "SISP Order." This pivotal order greenlights a Sales and Investment Solicitation Process ("SISP") aimed at attracting bids for the potential acquisition of the business itself, or at the very least, its assets. The court also approved an amended and restated Initial Order ("ARIO"), provisioned to extend the stay of proceedings, which is now anticipated to continue until May 20, 2024.

In a proactive move to increase transparency and access to information, the COPL Group has made the Initial Order, SISP Order, as well as the SISP, ARIO, and all related documents readily accessible to the public. These materials can be found on the Monitor's website, which acts as a comprehensive repository for relevant information concerning the Canadian Overseas Petroleum restructuring efforts. Interested parties can view these documents at KSV Advisory's experience page on Canadian Overseas Petroleum.

As it navigates through these complex waters of restructuring, the Company is also seeking acknowledgment of both the ARIO and the SISP Approval Order from the United States Bankruptcy Court, particularly focused within the purview of the district of Delaware. This international recognition is a crucial element as it embarks on a strategic path to financial recovery and business revitalization.

Legal and Advisory Backbone

A team of proficient legal advisors and restructuring counselors are supporting Canadian Overseas Petroleum Limited in this transformative period. Representing from Canada, we have the legal expertise of Osler, Hoskin & Harcourt LLP. They are mirrored by the US counsel, Potter Anderson LLP, ensuring a seamless restructuring process across borders. Adding to the strategic ensemble is the distinguished Peter Kravitz from Province Fiduciary Services, who has taken up the mantle as COPL's Chief Restructuring Officer. This consolidation of advice and leadership is aimed at steering the company through the potentially turbulent phase of reorganization.

A Glimpse into the Company's Profile

With headquarters in Calgary, Alberta, COPL has established itself as a powerhouse in the oil and gas exploration, development, and production world. As an international entity, its footprint in the energy sector signifies a commitment to both excellence and progress, aligning with the industry's ever-evolving dynamics.

Forward-Looking Statements: A Word of Caution

The recent disclosures have contained several forward-looking statements which cast projections into the future of the Company. Such statements are characterized by the use of predictive terminology like "initial," "scheduled," "can," "will," and "anticipate" among others. These proclamations, while forward-thinking, are deeply rooted in the expectations and assumptions made by COPL. These include, but are not limited to, prospective achievements such as the successful raising of necessary operational funds and the projected timelines of exploration or development projects or capital expenditures.

The Company instills confidence in its stakeholders by maintaining that the forward-looking statements are based on tangible expectations and solid presuppositions. Despite this, the Company insists that over-reliance on such statements should be avoided. The nature of the business sector, rife with inherent risks and uncertainties, most of which lie beyond the helm of the Canadian Overseas Petroleum Ltd., makes the future inherently unpredictable.

These forward-looking statements, represent a synthesis of data and projections as of the date of the news release and should be considered dynamic, subject to change. Canadian Overseas Petroleum has pledged to keep the public and its investors updated on any developments or new information that might influence these projections, ensuring compliance with applicable securities laws.

Disclaimer and Assurance of Accuracy

As Canadian Overseas Petroleum Limited releases this announcement, the Company is adamant about its sole responsibility for the content therein. There is a firm disclaimer that neither the Company nor its affiliates or agents are to be held accountable for the accuracy or completeness of this public release, or any other furnished information, whether written or oral. Apart from the obligations that may arise under the Financial Services and Markets Act 2000, or any subsequent regulatory framework, the Company shrugs off any acceptance of liability. All interested parties are thus cautioned to evaluate the information with an understanding of the possibility of data being incomplete or less than fully accurate.

In Summary

Canadian Overseas Petroleum Limited, by virtue of taking significant steps towards restructuring, has displayed a remarkable proclivity for corporate resilience. The Company has activated the SISP, which could usher in new ownership or infuse fresh capital into its operations. With legal counsel from both Canada and the U.S., and a Chief Restructuring Officer at the helm of affairs, COPL is navigating the restructuring process in a bid to emerge stronger and more efficient.

Support from the Alberta Court of King's Bench has provided the legal scaffolding necessary for the COPL Group to seek an effective metamorphosis of its business dealings. By extending the stay of proceedings and broadcasting overtures to potential bidders, the company is breaking new ground in commercial dexterity. The active pursuit of American legal recognition signals a determination to cover all bases, further reinforcing COPL's intent to anchor its future on a stable and versatile platform.

This news serve as a pivotal chapter in COPL's storied history. It is a clear testament to the organization's commitment to navigation through fiscal turbulence towards a horizon of operational sustainability and profitability. As the documents related to their restructuring efforts are made available through transparent channels, investors and stakeholders are given an insight into the strategic actions being undertaken.

In conclusion, despite the emergence of forward-looking statements that cast a vision for the company's future, caution is the watchword. The inherent uncertainties characteristic of the oil and gas sector necessitate a prudent approach, as COPL proceeds with its restructuring strategy. Investors and the broader market await further news with a practiced patience, knowing well that the future holds a blend of challenge and opportunity for the resilient enterprise of Canadian Overseas Petroleum Limited.

SOURCE: Canadian Overseas Petroleum Limited

Canadian Overseas Petroleum Limited remains committed to updating the public as necessary, holding firm to its obligation for transparency under the strictures of securities regulation. The Company underlines the relevance of appropriate due diligence among interested parties and asserts its dedication to thorough and ethical business practices.

With the deliberate release of this announcement, COPL reaffirms its engagement in honest communication with the market. The initiative showcases the intent to uphold an elevated level of corporate governance and stakeholder communication, even during times of strategic reorganization.

The outlined restructuring process is a step forward in the life cycle of Canadian Overseas Petroleum Limited. It represents a thoughtful approach to ongoing business challenges and articulates a clear pathway toward a robust and sustainable future.

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Note: The actual Press Release can be viewed through the provided link on the Monitor's website.