Atomic assets are located in Powder River Basin in the state of Wyoming. Credit: Terry McGraw from Pixabay.

Canadian Overseas Petroleum (COPL), a junior oil and gas company focused in the Sub-Saharan African region, is set to acquire Atomic Oil & Gas to pursue opportunities in the US.

As agreed, COPL will pay a total of $54m as consideration, including assumed debt, cash and shares, to acquire the US-based firm.

A private oil and gas company, Atomic is incorporated under the laws of the state of Colorado, with assets located in Powder River Basin in the state of Wyoming.

The company holds two oil production units and a unitised exploration area within a 52,258 acre (gross) contiguous leasehold it operates in the region.

Both oil fields, Barron Flats Shannon Miscible Flood Unit and the Cole Creek Unit, are at the beginning of their 40+ life with a current production rate of 1,400 bbls/d (gross).

Atomic also has two affiliates of the Southwestern Production Corp, which is the operating entity, and PipeCo, a midstream entity holding the pipeline and facility assets.

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Canadian Overseas Petroleum president and CEO Arthur Millholland said: “This is a game-changing acquisition which will materially reposition COPL as a production company with assets that have a long-term lifecycle and rapid production opportunity.

“Oil production assets of this quality, having an incline curve rather than a decline curve, are rarely available for purchase.

“Circumstances surrounding the Covid-19 situation created this favourable opportunity for COPL. With this acquisition, in addition to the substantial upside potential already present in our Nigerian offshore project, the Company is now strategically well placed to deliver enhanced value and returns to shareholders.”

The acquisition is expected to close by 31 January.