Canadian Overseas Petroleum Limited announced a significant conventional light oil discovery at its Wyoming asset. In addition, COPL provides an operational update on its Barron Flats Shannon Field production. The Company can confirm that it's BFU 14-30VF exploration well drilled in August
2021 has made a significant conventional light oil discovery on COPL's affiliates large operated leasehold (47,992 gross contiguous acres) position in Converse and Natrona Counties, Wyoming. Light crude oil was discovered in stratigraphic traps in the Upper Cretaceous Frontier Fm. 1 and 2 sands and the Lower Cretaceous Dakota Fm. sands. Mapping of the reservoirs on regional trends has shown the discovery to be extensive, with the Company estimating the combined reservoir volume to be 1.5 billion to 1.9 billion Bbl. of Oil in Place ("OIP"), of which 1.275 billion to 1.64 billion Bbl. of OIP underlays COPL lands. COPL's current working interest on its operated leasehold block ranges from 55-85%. Federal leases constitute the majority of the Company's leasehold on the discovery and as such Federal royalties on these "deep" reservoirs are assumed by the Company to be 12.5%, delivering an attractive Net Revenue Interest ("NRI"). The Dakota Fm. sand as the deepest or lowermost oil-bearing horizon was completed and placed on production recently to comply with the Barron Flats Federal (Deep) Exploration Unit terms. The Company estimates the Frontier discovery to be approximately 33,000 acres (51 square miles) in size, of which 88% is under the Company's leasehold. The potential resource is significant, with Oil in Place ("OIP") is currently estimated by COPL to be 1.1-1.5 billion Bbl, with 0.968-1.32 billion Bbl. of this estimated to be on the Company's 47,992 gross contiguous acres of leasehold. Light oil from the Frontier has been produced and/or is currently producing from five (5) wells up-dip on Company lands at Cole Creek on the western margins of mapped accumulation with cumulative production to date from the Frontier 2 sands of approximately 1.1 million bbl oil over the past 10 years. Light oil has also has been recovered by drill stem test (150 bbl/d) from the Frontier sand in Mobil Valentine-1 well 40 years ago 3.5 miles down-dip on the eastern margin of the mapped accumulation. Exploitation of the oil-bearing Frontier sands will commence later this year through horizontal wells. The Company estimates the Dakota discovery to be approximately 37,000 acres (58 square miles) in size, of which 77% is under the Company's leasehold. The potential resource is significant, with Oil in Place ("OIP") in the Dakota Fm. reservoir sand estimated by COPL to be 400 million bbl, with 308 million bbl. of this estimated to be on the Company's 47,992 gross contiguous acres of leasehold. The Barron Flats Shannon Unit continue to perform beyond COPL's initial expectations with crude oil production running at around 2,000 bbl./d The increase
in production since the asset was acquired is due to the enhanced gas injection program which commenced on April 1, 2021.