Canadian Overseas Petroleum Ltd: Private Placement of First Tranche of Units

CALGARY, AB--(Marketwired - Apr 20, 2016) - Canadian Overseas Petroleum Ltd (TSX VENTURE: XOP) (LSE: COPL)

Canadian Overseas Petroleum Limited
20 April 2016

Canadian Overseas Petroleum Limited Announces Private Placement of First Tranche of Units

Calgary, Canada, 20 April 2016 - Canadian Overseas Petroleum Limited (the "Company") (TSXV: XOP) (LSE: COPL), is pleased to announce the first tranche of a previously announced private placement of units (the "Units") in the Company (the "Offering") for gross proceeds of £800,000, pursuant to which the Company will issue 22,857,143 Units at a price of £0.035 per Unit. Further to the Company's announcement on March 30, 2016, the Company has now entered into definitive agreements for a private placement on a non-brokered basis to investors in the United Kingdom (the "First Tranche"). Admission of the First Tranche to the London Stock Exchange ("LSE"), and thus closing, is expected on April 28, 2016.

Each Unit consists of one common share ("Common Share") in the capital of the Company and one Common Share purchase warrant ("Warrant"). Under the First Tranche, each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of £0.0475 per Common Share at any time prior to 17:00 hrs (London time) on or before the date that is 24 months from the closing of the First Tranche. The Common Shares and Warrants comprising the Units will separate immediately upon closing.

The Company intends to use the net proceeds of the Offering to fund the Company's obligations on its ongoing projects in West Africa, notably seeing its way through the drilling of the first exploration well offshore Liberia, overhead costs for its Nigerian oil appraisal and development project offshore Nigeria, and general corporate purposes. 

Management, representing approximately 3% of the share capital of the Company, and certain insiders of the Company are expected to participate in the second tranche of the Offering for an amount approximately equal to or exceeding their proportionate current holdings in the Company.

The First Tranche offering is subject to customary conditions and the receipt of required regulatory approvals, including the approval of the LSE and the TSX Venture Exchange (the "TSXV"). All securities issued pursuant to the Offering will be subject to a four month trading hold period through the facilities of the TSXV, pursuant to applicable securities laws and the policies of the TSXV.

To view the full announcement, please click on the following link.
http://www.rns-pdf.londonstockexchange.com/rns/7034V_1-2016-4-19.pdf