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Columbus Energy Resources PLC

Columbus Energy Res - Business Update - La Lora Concession in Spain

RNS Number : 8209I
Columbus Energy Resources PLC
26 March 2018
 

26 March 2018

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Business Update - La Lora Concession in Spain

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, provides the following update affecting its Spanish subsidiary, Compañía Petrolifera de Sedano S.L.U. ("CPS"). 

As previously announced by the Company on 22 February 2018, the Company has been undertaking a Collective Dismissal Procedure ("CDP") under Spanish law affecting its employees in Burgos, Spain.  

The Company wishes to advise that the CDP process is now complete. The redundancy plan proposed by the Company was approved by the vast majority of the 14 affected employees and formally approved by the Trade Union.  The final cost to the Company was approximately €410,000

The process was completed on time and the final cost was consistent with the relevant budget approved by the Board.  The costs were met from currently available funds.   The Company estimates that ongoing running costs to maintain the Ayoluengo field on a care and maintenance basis will now be approximately €15,000 per month and this compares to approximately €60,000 incurred per month since early 2017. 

The Company awaits formal closure of the current La Lora concession (the "Concession") by the Spanish authorities, which is expected imminently, and is expecting that the re-tender exercise will begin in Q2-Q3 2018.  It is the Company's intention to participate in the re-tender and is open to bidding jointly with a partner.  The Company invites interested parties to contact the Company at info@columbus-erp.com (for the attention of Tony Hawkins, Legal and M&A Director).

Leo Koot, Executive Chairman of Columbus, commented:

"We would like to thank the employee representatives and the Trade Union for undertaking the CDP in a professional manner and for the swift conclusion of the negotiations.  We look forward to the formal closure of the Concession and participating in the re-tender exercise.  We would welcome expressions of interest from parties who would like to join us in the re-tender process." 

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Contact Information

Columbus Energy Resources plc

Leo Koot / Gordon Stein

+44 (0)20 3794 9230

VSA Capital Limited

Financial Adviser and Broker

Andrew Monk / Andrew Raca / Justin McKeegan

+44 (0)20 3005 5000

Beaumont Cornish Limited

Nominated Adviser

Roland Cornish / Rosalind Hill Abrahams

+44 (0)20 7628 3396

Camarco

Public and Investor Relations

Georgia Edmonds / James Crothers

+44 (0)20 3757 4983

 

Notes to Editors:

Columbus Energy Resources Plc is an oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America. Initially focussed on maximising production from its core Goudron field asset, Columbus is cashflow positive and aims to create transformational growth by developing its exploration targets across its portfolio in the South West Peninsula ("SWP"), which lies in the extreme southwest of Trinidad and consists of stacked shallow and deep prospects, in a capital efficient and disciplined manner.  

Columbus is guided by the following core values; safe and sustainable, stronger together, creative excellence, positive energy, totally trusted and personally responsible.

The Company is led by an experienced Board and senior management team with supportive shareholders and intends on leveraging its expertise and experience to build an attractive and diversified portfolio of assets across South America in order to build an oil production led South American exploration business. 

To find out more, visit www.columbus-erp.com or follow us on Twitter @Columbus_ERP.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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