Mr. Arthur Millholland reports

CANADIAN OVERSEAS PETROLEUM LIMITED CLOSES UNIT OFFERING FOR APPROXIMATELY $10.1 MILLION

Canadian Overseas Petroleum Ltd. has closed its previously announced marketed offering of units of the company. Pursuant to the offering, the company issued an aggregate of 50,555,000 units, at a price of 20 cents per unit, for aggregate gross proceeds of approximately $10.1-million. Each unit consists of one common share in the capital of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at an exercise price of 40 cents per common share at any time prior to 4:30 p.m. MT on or before the date that is 36 months following the closing date of the offering. The offering was led by GMP Securities LP.