Canadian Overseas Petroleum to sell stake in oilfield to ExxonMobil for US$55M

CALGARY - Canadian Overseas Petroleum Ltd. (TSXV:XOP) says it has agreed to sell a 70 per cent interest in a Liberian oil play to a subsidiary of ExxonMobil for US$55 million and other considerations.

The company said Wednesday that its subsidiary had signed an agreement under which ExxonMobil Exploration and Production Liberia Ltd. will acquire the stake once COPL completes the purchase from its current owner.

The deal is for an interest in an offshore Liberian oil asset.

ExxonMobil will pay COPL US$55 million plus a portion of the first well to be drilled up to a maximum of US$36 million.

ExxonMobil will also pay COPL's share of joint venture costs, estimated to be about US$6 million, up to the completion of the first well.

ExxonMobil will be the designated operator.

COPL has agreed to pay the current owner $85 million, but it has not yet closed the deal.

The sale is subject to approval by the Liberian government.