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Press release from CNW Group

Canadian Overseas Petroleum Updates BG Dispute

Wednesday, October 17, 2012

Canadian Overseas Petroleum Updates BG Dispute16:00 EDT Wednesday, October 17, 2012CALGARY, Oct. 17, 2012 /CNW/ -Canadian Overseas Petroleum Limited ("COPL" or the "Company") (TSXV: XOP) provides an update on its ongoing dispute with BG International Limited ("BG") in relation to Block 22/15 and Block 23/21 in the North Sea.  On October 12, 2012, the High Court of Justice in England heard an application brought by BG to direct JPMorgan Chase Bank, as escrow agent, to release approximately $16.1 million of escrowed funds to BG pending resolution of the underlying dispute between the parties.  COPL's UK subsidiary opposed the application on the basis that the escrow agent had exercised its discretion to retain the funds until the underlying dispute between COPL and BG was determined by a court.  The High Court ruled in favour of BG on the narrow grounds of the wording in the escrow agreement. The ruling does not concern the underlying dispute between the parties.COPL has until 2 November 2012 to seek leave to appeal the ruling should it decide to do so.About the Company COPL is an oil and gas exploration company focused in the offshore West African continental margin and the UK North Sea.  COPL's Common Shares are listed under the symbol "XOP" on the TSX Venture Exchange.Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.SOURCE: Canadian Overseas Petroleum LimitedFor further information: Mr. Arthur Millholland, President and CEO Phone: 403.262.5441 Or, Rob Elgie, Manager of Investor Relations Phone: 403.262.5441 Or Pelham Bell Pottinger Public Relations James Henderson, Managing Director or Mark Antelme Phone: +44 (0) 207 861 3160