Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Columbus Energy boosts half year revenues and sees cash inflows by year end

Company says cash inflows mean it can drill SWP target in Trinidad without a partner
picture of oil workers
Production from Goudron can rise to 900bpd by mid-2018

Trinidad-based oiler Columbus Energy Resources PLC (LON:CERP) expects to become cash flow positive by the end of 2017 following the start of a waterflood programme at the Goudron field.

The company, formerly known as LGO Energy, received a permit to start the programme yesterday and expects production to rise to 550 barrels per day by the end of 2017 and to 900bpd by mid-2018.

READ: Columbus Energy starts recovery journey with waterflood permit

READ: Columbus Energy gets approval to start production booster project in Trinidad

Production totalled 65,500 barrels (84,500) in the first six months of 2017 with Goudron averaging 327 daily.

The end of production from Columbus’ Spanish operation in January had dented output in the first half.

Interim revenues rose to £2.46mln (£1.92mln) as higher oil prices and timing of sales offset the producition decline while after tax losses were little changed at £1.96mln.

Cash holdings were £1.68mln at the period end since when financier Lind has agreed to top up a convertible loan to the group by a further US$750,000.

Leo Koot, executive chairman, added that this additional cash plus the money to come from the Goudron work means it can fund the first wells on the 'potetially tranformational'  South West Peninsula assets in Trinidad without a partner, though it may look for one over the medium-term.

"This will allow the business to drill, from our own cash resources, the most attractive exploration/appraisal wells in our under-explored SWP acreage. Preparation for drilling is expected to start mid-2018 when the commercial negotiations have been completed and all necessary Government approvals received."

House broker VSA said that interim results should mark a turning point with the restoration of profitability at the core operations, ie Goudron, to provide stable cash flow for unlocking the exploration potential.

Utilising water injection and other well stimulation techniques such as smart pumping systems are the basis of the 550bopd by year end target. Early injectivity tests have resulted in tenfold increases in production rates so far.

SWP, meanwhile, represents Comumbus’ transformational growth opportunity and the ability to develop the asset internally is a significant positive step in VSA’s view.

The broker’s target price remains 25p against 3.18p, down 4% today, currently, with ‘buy’ the recommendation.

--update for broker comment, share price --

 

View full CERP profile View Profile

Columbus Energy Resources PLC Timeline

RNS
February 05 2018
RNS
January 18 2018
RNS
January 17 2018
RNS
January 12 2018
RNS
December 27 2017
RNS
November 08 2017
RNS
October 16 2017
RNS
October 16 2017

Related Articles

picture of oil wells
September 06 2017
The core of the portfolio is in the East Midlands Basin, which includes the Wressle-1 oil discovery
picture of oil well
October 23 2017
Programme will boost production from 30 barrels per day currently to a peak of over 150
picture of oil facilities
August 14 2017
Echo has ‘two fantastic opportunities’ in Huayco and Rio Salado in Bolivia

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use