In return Canadian Overseas Petroleum will pay SSE’s 16.67% share of the total drilling costs in the Lower Toad, Newt and West Columbus exploration prospects.
Canadian Overseas Petroleum may also have the same farm-in terms with SSE for the Upper Toad appraisal prospect.
All four prospects are located in Block 23/21 of the North Sea.
This farm-in agreement with SSE is a result of certain amendments made to the agreement signed in February 2011 between Canadian Overseas Petroleum and BG International concerning the same prospects.
As a result of the agreements with SSE and BG International, Canadian Overseas Petroleum’s total working interest in each prospect will be 50% upon completion of drilling.
The company plans to carry out drilling in at least six wells during the next 15 months in the North Sea with a variety of co-venturers based on farm-in agreements signed in December 2010 and February 2011.