An anonymous director reports

COPL ANNOUNCES CCAA APPLICATION AND SUSPENSION OF TRADING IN THE COMPANY'S SHARES

After extensive consideration and review of the company's current financial situation, Canadian Overseas Petroleum Ltd. and its subsidiaries have applied for an initial order from the Alberta Court of King's Bench, pursuant to the Companies' Creditors Arrangement Act (CCAA).

The initial order would provide for, among other things, a stay of proceedings in favour of the company, approval of debtor-in-possession financing (DIP financing), and the appointment of KSV Restructuring Inc. to serve as monitor of the company and its subsidiaries.

In light of the application for the initial order, the company has requested a suspension of trading in the company's common shares on both the London Stock Exchange and the Canadian Securities Exchange with immediate effect.

The company will continue its day-to-day operations as usual and intends to continue paying its critical suppliers in the ordinary course during the CCAA proceedings. The forbearance agreement with the company's senior lenders has now expired.

The company believes there is little prospect for a return to shareholders or bond holders.

Additional information

Osler, Hoskin & Harcourt LLP and Potter Anderson LLP are serving as restructuring counsel to the company in Canada and the United States, respectively, and McCarthy Tetrault LLP is serving as securities counsel to the company. As previously announced, Peter Kravitz of Province Fiduciary Services is serving as the company's chief restructuring officer.

About Canadian Overseas Petroleum Ltd.

The company is an international oil and gas exploration, development and production company headquartered in Calgary, Alta.

We seek Safe Harbor.