Canadian Overseas Petroleum (COPL), an international oil and gas exploration, production and development company with production and development operations focused in Converse and Natrona Counties, Wyoming, USA, is pleased to announce that the acquisition of the United States assets of Cuda Energy LLC ("Cuda") by its affiliate, COPL America Inc., will close today.

Acquisition immediately transformative:

• COPL America becomes the majority owner of its Wyoming assets with increased operated interests of 85-100% across three oil producing units
• From Q3 2022 it adds unhedged production and exposure to the current high oil price environment and will significantly increase COPL America's operating cash flow
• Increases COPL's 2P reserves by 47% from 25.8 million (COPL December 31, 2021 NI-51-101 Reserves) to 38.2 million barrels
• Provides significant leverage to COPL increasing the Company's NPV10 (47% working interest adjusted) by US$122 million from US$258 million (COPL December 31, 2021 NI-51-101 Reserves) to US$380 million.
• Cuda assets will now be consolidated into COPL America's asset-backed borrowing base, for its current senior loan, and for the Company to secure a Reserves Based Lending ("RBL") facility with a commercial bank.
• The cash consideration for the acquisition is US$19.15 million, plus assumed liabilities at closing which are estimated to be approximately US$1.6 million consisting primarily of Cuda's outstanding Joint Interest Billing obligations.
• The Cuda acquisition has a highly attractive valuation of c. 81% of the working interest adjusted Atomic Oil and Gas LLC acquisition announced last year

This news follows COPL's announcement on Friday 22 July of a Convertible Bond which provided proceeds of $19.7 million used to finance the cash component of the Cuda acquisition and which also allows for the implementation of a planned RBL facility. The Convertible Bond is anchored by the Company's largest institutional shareholder which is a UK based fund.

Arthur Millholland, President & CEO, commented:
"I am delighted we have finally completed this acquisition. The market continues to misunderstand the full potential of our Wyoming assets. In my near forty years within the oil industry I have seldom come across assets with such prolific oil and gas potential. We now have full ownership which we have secured when the assets are at an early stage in development with everything to play for. With the financing arrangements we also now have in place we look to the future with confidence."

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