Mr. Tom Richardson reports

CANADIAN OVERSEAS PETROLEUM LTD ANNOUNCES NOTICE OF DEFAULT FROM AFFILIATE'S SENIOR LENDER

Canadian Overseas Petroleum Ltd. has provided an update on its senior credit facility.

The company's indirect affiliate, COPL America Inc., has received a notice of default that indicated, among other things, the senior lender is unwilling to further amend or waive the terms of its senior credit facility. Without an amendment or waiver from the senior credit facility lender, the company's indirect affiliate, COPL America, will be in breach of the terms of the senior credit facility on or before Jan. 1, 2024.

The company anticipates that it will require additional financing in January, 2024. Should the company be unsuccessful in raising the required capital, it would have to seek some form of creditor protection. There can be no assurances that financing will be found, or that the company will not be able to avoid a creditor protection process in its principal jurisdiction of incorporation.

The company is considering all of its options in relation to its future.

About Canadian Overseas Petroleum Ltd.

Canadian Overseas is an international oil and gas exploration, development and production company actively pursuing opportunities in the United States with operations in Wyoming.

We seek Safe Harbor.