Canadian Overseas Petroleum Limited announced that the company has signed a Term Sheet for a $65 million Senior Credit Facility ("Credit Facility" or "Facility") with a US based Global Investment Firm (the "Lender") to finance the closing of its acquisition of Atomic Oil and Gas LLC ("Atomic") and its related entities announced on December 16, 2020. The facility has a term of four years and is subject to typical lending conditions through its term. The facility has a base size of $45 million, with an additional, or "accordion", $20 million to fund future development at the sole discretion of the lender. The terms of the Facility are market competitive. Closing of the Credit Facility, which is not yet legally binding, is expected on or about the week of February 15, 2021 and is subject to typical closing conditions, which include entering into a formal Lending Agreement. At closing, draw down of the Credit Facility would allow the Company to complete the acquisition of Atomic and its related entities.