Canadian Overseas Petroleum Limited provided an update on its activities. The Company's strategy, as previously stated, is to diversify and balance its asset portfolio. The 50/50 JV partnership with Shoreline Energy, through is 50% owned affiliate Shoreline Canadian Overseas Petroleum Development Corporation, was formed with the objective of acquiring upstream oil and gas exploration, development and producing assets in sub-Saharan Africa.
The JV has made significant progress in recent months and has recently agreed to an acquisition in Nigeria subject to the approvals of the Nigerian regulatory authorities. The transaction provides for ShoreCan to acquire 80% equity and titled interest of an oil appraisal/development project offering near term oil production, as well as significant future exploration upside. The transaction also provides ShoreCan to take over management and operatorship of the asset.