“With the commercial terms settled in the agreement in principle, the legal language over a number of agreements has taken time to conclude,” said chief executive Arthur Millholland.
Canadian Overseas Petroleum Limited (LON:COPL) shares started Friday positively after the oiler announced its 50%-owned joint venture ShoreCan has agreed an extension to the backstop date to sign-off definitive documents to seal the resolution of its dispute with Essar, Shorecan’s partner in Nigeria.
The new date has been set as July 20, the company said.
“The time taken to enter into the definitive documents has taken longer than both parties thought at the outset,” said Arthur Millholland, COPL chief executive, said in a statement.
“With the commercial terms settled in the agreement in principle, the legal language over a number of agreements has taken time to conclude. We are close to completion on these, but with both parties working amicably we just ran out of time.
“We continue to look forward to the future working relationship with Essar to unlock the potential of OPL 226,” he added.
In London, COPL shares rose 9.38% to 0.35p in Friday’s early deals.