Proactiveinvestors United Kingdom Columbus Energy Resources PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Columbus Energy Resources PLC RSS feed en Mon, 22 Apr 2019 11:01:33 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Columbus Energy looks ahead to new Trinidad drilling project ]]> https://www.proactiveinvestors.co.uk/companies/news/218791/columbus-energy-looks-ahead-to-new-trinidad-drilling-project-218791.html Columbus Energy Resources PLC (LON:CERP) this afternoon gave investors a broad update on its operations, including details of an upcoming well in Trinidad and a potential new venture in South America.

In Trinidad, the company is working towards the start of drilling at the South West Peninsular (SWP) in the third quarter, subject to government approvals.

The drill plans will be aided by a detailed technical report by independent geoscience specialists, due in the second quarter.

WATCH: Columbus Energy's Koot details upcoming drill programme

“Nearly two years since I started with Columbus, we are now almost ready to start unlocking the huge potential that exists in the SWP, an asset located just a few miles from Venezuela and part of the biggest hydrocarbon basin in the world,” said Leo Koot, Columbus executive chairman.

Koot added: “We have successfully re-negotiated the commercial terms of the SWP licences in a manner which makes them far more attractive than the commercial terms we have for the other assets in our portfolio. 

“Specialist independent technical consultants have also been working with our team to de-risk the SWP portfolio and identify well locations which will allow us to carry out a suitably risked drilling campaign over the next 6-24 months.”

The SWP well will be funded from the company’s existing available resources.

Koot highlighted that it will “hopefully provide the stepping stone to an exciting and transformational drilling and development campaign.”

A possible new opportunity in South America

Columbus is, meanwhile, in ‘exclusive discussions’ over a potential new venture in a South American country.

The company noted that it follows a successful three-month tender process.

It described the project as a “low-cost entry into a discovered onshore oilfield”. Columbus, as part of its detailed work programme for the 2019-2021 period, and, the award is anticipated late in the second quarter or early in the third.

Additionally, a number of other mergers and acquisition opportunities are being considered, consistent with the company's strategy roadmap.

“This entry into another country will start the process of expanding our footprint and reducing our exposure to just one country of operation,” Koot said.

“We believe our team have the skills to enable us to unlock a number of opportunities in that country and the region.”

Operations update

The existing Trinidad operation increased net cashflow marginally during the first quarter of 2019, despite lower production and lower average oil prices.

Output measured 602 barrels of oil per day in the quarter, compared to 607 bopd in the preceding three months.

The company noted that production peaked at 1,000 bopd in late January, and, it highlighted that the rate exceeded 860 bopd on three occasions during the period.

It said that rig usage and opex costs being managed carefully to reflect current commercial circumstances, and, the company continues to retain its focus on profit rather than production growth.

Columbus ended the quarter with US$2.06mln in cash.

It generated US$400,000 of cash flow in the three months, whilst gross revenues reduced by 14%.

Koot added: “We have been managing our operations in Trinidad in a different manner, focussing on optimising profit as opposed to simply growing the total production numbers. 

“With lower oil prices and the impact of SPT between US$50-US$60/bbl, we have taken action to reduce our rig activity and we have also reduced operating costs in a number of other areas. 

“Despite the lower production and resultant lower revenues, we have slightly increased our cash netback from operations and will look to continue to maintain a tight ship until the economic conditions and commercial terms allow us to pursue real production growth again.”

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Wed, 17 Apr 2019 15:58:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/218791/columbus-energy-looks-ahead-to-new-trinidad-drilling-project-218791.html
<![CDATA[Media files - Columbus Energy's Koot details upcoming drill programme and significant new deal ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13037/columbus-energy-s-koot-details-upcoming-drill-programme-and-significant-new-deal-13037.html Wed, 17 Apr 2019 15:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13037/columbus-energy-s-koot-details-upcoming-drill-programme-and-significant-new-deal-13037.html <![CDATA[RNS press release - Business, Operational and Financial Update - Q1 ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190417145542_14045129/ Wed, 17 Apr 2019 14:55:42 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190417145542_14045129/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190321140540_14011233/ Thu, 21 Mar 2019 14:05:40 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190321140540_14011233/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190321140026_14011225/ Thu, 21 Mar 2019 14:00:26 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190321140026_14011225/ <![CDATA[News - Columbus Energy looks forward to start of Inniss-Trinity enhanced recovery pilot ]]> https://www.proactiveinvestors.co.uk/companies/news/216356/columbus-energy-looks-forward-to-start-of-inniss-trinity-enhanced-recovery-pilot-216356.html Columbus Energy Resources PLC (LON:CERP) told investors that it is expecting a second-quarter start to gas injections for the pilot project with Predator Oil & Gas and Heritage Petroleum at the Inniss-Trinity IPSC area.

The pilot project aims to inject carbon dioxide into wells as part of an enhanced oil recovery project.

WATCH: 'It's the year we've been waiting for' says Columbus Energy's Leo Koot

Existing agreements enable Predator to acquire the AIM-quoted company’s FRAM Exploration subsidiary, which holds the interest in the Inniss-Trinity, for US$4.2mln. Predator is funding the pilot project.

"The company looks forward to working with Heritage and Predator to advance the CO₂ pilot project,” said Leo Koot, Columbus chief executive.

“We believe the CO₂ pilot project on Inniss-Trinity will give all parties a valuable insight into an alternative enhanced oil recovery mechanism for Trinidad and has the potential to transform oil & gas operations in the Inniss-Trinity field and in similar fields in Trinidad."

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Wed, 13 Mar 2019 08:05:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/216356/columbus-energy-looks-forward-to-start-of-inniss-trinity-enhanced-recovery-pilot-216356.html
<![CDATA[RNS press release - Update on Inniss-Trinity IPSC ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190313070004_13999808/ Wed, 13 Mar 2019 07:00:04 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190313070004_13999808/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190207182158_13962449/ Thu, 07 Feb 2019 18:21:58 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190207182158_13962449/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190207181813_13962447/ Thu, 07 Feb 2019 18:18:13 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190207181813_13962447/ <![CDATA[Media files - 'It's the year we've been waiting for' - Columbus Energy's Leo Koot on 2019 ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11759/-it-s-the-year-we-ve-been-waiting-for----columbus-energy-s-leo-koot-on-2019-11759.html Wed, 09 Jan 2019 15:15:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11759/-it-s-the-year-we-ve-been-waiting-for----columbus-energy-s-leo-koot-on-2019-11759.html <![CDATA[News - Columbus Energy achieves production target for 2018 exit ]]> https://www.proactiveinvestors.co.uk/companies/news/212210/columbus-energy-achieves-production-target-for-2018-exit-212210.html Columbus Energy Resources PLC (LON:CERP) confirmed that it achieved the targeted end-of-year peak production rate of 1,000 barrels of oil per day, with the help of the asset acquisition.

The Trinidad-focused company, in a statement, said that output hit 1,021 bopd in late December while the average rate for the fourth quarter amounted to 670 bopd.

It noted that the average rate was held back by the impact of extreme weather conditions - record rainfall and extensive flooding – during the period, which it said “severely hampered” operations and well programmes.

Nonetheless, it still achieved certain project milestones during the quarter – with the successful Snowcap-1 & Snowcap-2 appraisal wells on the Cory Moruga block, which subsequently added 70 bopd of production.

READ: Columbus Energy Resources shares tipped to soar

The company said that it had US$3.23mln of gross revenue in the fourth quarter, the average oil sales price was US$57.58 per barrel and it generated some US$0.37mln of cashflow after the costs of field maintenance and well workovers.

It raised £2.5mln of new capital, repaid US$1.25mln of debt and ended the quarter with a US$2.6mln cash balance. Debt stood at US$400,000 at 31 December 2018.

During the period, the company completed the Steeldrum acquisition which then had an effective date of 13 July, and, it also completed the acquisition of a 50% stake in the Icacos field.

Columbus told investors that it continues to pursue mergers and acquisition opportunities in Trinidad and South America, which are value accretive. Several formal proposals are under consideration by the relevant parties, it added.

"The past three months have been very challenging as we sought to complete the integration of the Steeldrum and Columbus teams in Trinidad into one effective unit, whilst also striving to grow production across our expanded portfolio,” said Leo Koot, Columbus chairman.

“With the recent appraisal of the Snowcap field and the transfer of operating management of Icacos, Columbus is now operating six fields onshore Trinidad. 

“This provides us with many competing options to increase operational cashflow and also reduces our reliance on just one or two fields for our cashflow streams.”  

"All of our activities in Q4 2018 were undertaken at a time when Trinidad was witnessing the worst weather conditions in many years with record rainfall and resultant floods which impacted the lives of many. 

“These conditions severely hampered our operations on a number of occasions, in particular gaining access to our wells which needed operational support to maintain production.”

Koot added: "I am therefore delighted to report that, despite these challenges, we successfully achieved our year-end target of 1,000 bopd of peak production, with all six fields in Trinidad contributing growing volumes of oil for sale. Achieving a peak of 1,021 bopd was an excellent achievement.”

In a note to clients, analysts at VSA Capital said: "We believe that at the current share price CERP’s production potential, exploration upside and capital discipline is simply not reflected and continue to see significant upside potential."

VSA reiterated a 'buy' recommendation and 21.4p target price on Columbus Energy shares which in late afternoon trading were changing hands at 2.77p, down 9% on Tuesday's close.    -- Adds analyst comment, share price --  ]]>
Wed, 09 Jan 2019 07:34:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212210/columbus-energy-achieves-production-target-for-2018-exit-212210.html
<![CDATA[RNS press release - Business, Operational and Financial Update Q4 2018 ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190109070002_13928150/ Wed, 09 Jan 2019 07:00:02 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20190109070002_13928150/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181207070005_13895072/ Fri, 07 Dec 2018 07:00:05 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181207070005_13895072/ <![CDATA[News - Columbus Energy Resources shares tipped to soar thanks to ‘stronger growth platform' ]]> https://www.proactiveinvestors.co.uk/companies/news/209034/columbus-energy-resources-shares-tipped-to-soar-thanks-to-stronger-growth-platform--209034.html Columbus Energy Resources PLC (LON:CERP) now has a stronger platform for growth and its share price has the potential to rise out of its ‘range bound’ trading, that’s the view of broker VSA Capital.

With a ‘buy’ recommendation and a 21.4p price target, VSA Capital sees the potential for the share price to soar more than 500% from the current price of 3.72p.

VSA’s view is bolstered by Columbus Energy’s recent acquisition of Steeldrum, a fellow Trinidad-based oil firm.

READ: Columbus Energy raises funds to accelerate growth

“The acquisition brings immediate production along with upside potential from low cost optimisation as well as new drilling,” VSA analyst Oliver O’Donnell said in a note.

“The shares have been range bound recently, however, we believe that CERP now has a stronger platform for achieving its combined organic and acquisitive growth strategy which will deliver the expected rerating, in our view.”

“Completion of the Steeldrum acquisition diversifies CERP’s production base with immediate additional production of 200-250bopd with near term upside potential, including new production from the Snowcap well in the Cory Moruga field during Q4 2018.”

O’Donnell added: “Our earnings estimates are updated to reflect the acquisition … and we remain convinced of the considerable upside potential in the shares with production growth and drilling upcoming in the next period.”

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Mon, 12 Nov 2018 15:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209034/columbus-energy-resources-shares-tipped-to-soar-thanks-to-stronger-growth-platform--209034.html
<![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181109150753_13862200/ Fri, 09 Nov 2018 15:07:53 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181109150753_13862200/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181109070001_13860913/ Fri, 09 Nov 2018 07:00:01 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181109070001_13860913/ <![CDATA[News - Columbus Energy Resources to decommission Spanish field ]]> https://www.proactiveinvestors.co.uk/companies/news/208485/columbus-energy-resources-to-decommission-spanish-field-208485.html Columbus Energy Resources PLC (LON:CERP) told investors that its Spanish subsidiary CPS (Compañía Petrolifera de Sedano) has been ordered to begin the decommissioning of the Ayoluengo field.

The company explained that it had previously expected the Spanish authorities would re-tender the La Lora Concession, since the existing operations agreement expired. Indeed, it has been awaiting notice of a re-tender since January 2017.

READ: Columbus Energy raises funds to accelerate growth

"The company is disappointed that the Spanish Government has not publicly stated why it has decided not to re-tender the La Lora Concession, especially as we have been led to believe that a new tender would be forthcoming before the end of 2018,” said Leo Koot, Columbus chairman.

“The company will consider its options with respect to the Government's decision."

Columbus noted that it already carries sufficient provision in its accounts for decommissioning costs, and, it added that numerous assets on site would be moved to and utilised within its Trinidadian operations or sold to offset any such costs.

It expects there will be no material cash expenditure in relation to the decommissioning of the La Lora Concession.

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Mon, 05 Nov 2018 08:12:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208485/columbus-energy-resources-to-decommission-spanish-field-208485.html
<![CDATA[RNS press release - La Lora Concession, Spain ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181105070006_13854137/ Mon, 05 Nov 2018 07:00:06 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181105070006_13854137/ <![CDATA[RNS press release - Result of General Meeting ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181102154942_13853813/ Fri, 02 Nov 2018 15:49:42 +0000 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181102154942_13853813/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181017155506_13832863/ Wed, 17 Oct 2018 15:55:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181017155506_13832863/ <![CDATA[RNS press release - Posting of Circular ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181016150004_13831023/ Tue, 16 Oct 2018 15:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181016150004_13831023/ <![CDATA[Media files - Columbus Energy Resources to raise £2.5mln to 'accelerate growth strategy' ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10849/columbus-energy-resources-to-raise-25mln-to-accelerate-growth-strategy--10849.html Mon, 15 Oct 2018 10:50:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10849/columbus-energy-resources-to-raise-25mln-to-accelerate-growth-strategy--10849.html <![CDATA[News - Columbus Energy raises funds to accelerate growth ]]> https://www.proactiveinvestors.co.uk/companies/news/207051/columbus-energy-raises-funds-to-accelerate-growth-207051.html Oil and gas producer Columbus Energy Resources PLC (LON:CERP) intends to raise around £2/5mln by placing shares at 3.5p a pop.

The Trinidad-focused company’s shares closed at 3.75p on Friday.

READ: Columbus Energy looks to production growth as it completes Steeldrum acquisition

The company announced the placing after being approached by two of its shareholders who expressed an interest in providing capital to accelerate Columbus’s growth strategy. A shareholder new to Columbus – Burggraben – intend to take some shares in the placing.

Funds from the placing will be used to repay the US$1.25mln loan facility with North Energy Capital it inherited when it acquired the Steeldrum Oil Company; the company had indicated last week it would repay the loan facility by drawing down from its facility with Lind Partners but has now opted not to do the repayment this way.

READ: Columbus Energy completes Steeldrum acquisition

“Our major shareholders were keen to stress that they would rather see the monthly repayments, that would have been required to have been made on that Lind loan if it had been drawn-down, being invested in more value-adding opportunities in our operations,” said Leo Koot, the executive chairman of Columbus.

Money left over will be used to establish and implement a multi-well drilling campaign on the Steeldrum assets and also in the South West Peninsula.

Columbus also intends to upgrade facilities in the South West Peninsula (SWP), particularly at Bonasse and Icacos, to speed up oil production growth and sales and also allow for early sales from any exploration success at the SWP in 2019.

"With the completion of the Steeldrum transaction, Columbus now has a diverse production base and multiple, large exploration prospects. This is despite the legacy issues we have faced over the last year, which have made a dent in our funds earmarked for further development and have slowed our pace of growth,” said Koot.

"We are grateful for the long-term support from our shareholders and are delighted to welcome Burggraben, who expressed a willingness, after their visit to our operations in Trinidad, to invest in Columbus when the right opportunity arose. We remain committed to the further creation of value for all invested in Columbus and are confident that today's placing provides us with the springboard to deliver additional production growth that will in turn be reflected in our cash flow and the share price which, in turn, rewards everyone, including myself and the management team, who are still effectively using half their salary to buy equity on a monthly basis at 5.1p per share," Koot said.

In total, the company intends to issue 71.4mln new shares, taking the total number of shares in issue to 830.9mln.

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Mon, 15 Oct 2018 07:40:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207051/columbus-energy-raises-funds-to-accelerate-growth-207051.html
<![CDATA[RNS press release - Conditional placing to raise £2.5m ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181015070004_13827880/ Mon, 15 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181015070004_13827880/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181012164602_13827650/ Fri, 12 Oct 2018 16:46:02 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181012164602_13827650/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181012162235_13827608/ Fri, 12 Oct 2018 16:22:35 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181012162235_13827608/ <![CDATA[News - Columbus Energy says it will deliver 2018 production target ]]> https://www.proactiveinvestors.co.uk/companies/news/206743/columbus-energy-says-it-will-deliver-2018-production-target-206743.html Columbus Energy Resources PLC (LON:CERP) told investors that it is on track to deliver on its production target for 2018, with output due to top 1,000 barrels of oil per day by the end of the year.

The Trinidad-focused oil firm, following the recent completion of the Steeldrum acquisition, on Wednesday released a operations update for the third quarter.

READ: Columbus Energy completes Steeldrum acquisition

Significantly, as the transaction’s effective date was 13 July the reported volumes include a material contribution from the Steeldrum assets.

"It has been an exciting few months for all at Columbus as we sought to complete the acquisition of Steeldrum after it was announced in early Q3 2018,” said Leo Koot, Columbus executive chairman.

"We are already seeing the real benefits of having increased optionality for production and joining the two entities together provides a stronger platform for growth and helps de-risk our portfolio in Trinidad.”

Production averaged 735 bopd for the three month period, compared to 553 bopd in the comparative period of 2017. Volumes peaked at 879 bopd during the quarter, and, the company highlighted that in September the rate averaged 751 bopd.

Some 62,658 barrels of oil were sold, and the company said it generated $3.85mln of gross revenue for the quarter. The realised sales price averaged $60.80 per barrel, which is broadly consistent with the comparative period, and, the price peaked at $62.14 per barrel in September.

It highlighted ‘strong progress’ with the delivery of the company’s key strategic goal of being cash flow positive, generating around $540,000 of positive cash flow after spending on what it described as an ‘intensive field maintenance and well workover campaign’.

Columbus ended the quarter with $1.97mln of cash.

Integration and opportunity

The company said that the integration of the Steeldrum assets will complete in the fourth quarter, and, the enlarged team is presently working to identify and implement opportunities to increase production, with all work funded out of cash flow.

Leo Koot added: "We can see many opportunities for achieving quick production growth across the new Columbus portfolio, which now includes five producing fields, one development project and our highly prospective South West Peninsula exploration opportunity, and we will be implementing those projects in the coming weeks with the objective of exceeding 1,000 bopd in Trinidad by the end of 2018.

“We also plan to bring the Snowcap Field in the Cory Moruga Licence onto production through re-starting the Snowcap-1 well before the end of 2018, using existing infrastructure and available funds, following the received formal confirmation of the extension of the licence by the Trinidad authorities.

“We believe this will achieve a quick production ‘win’ for Columbus towards the year-end production target.”

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Wed, 10 Oct 2018 07:29:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206743/columbus-energy-says-it-will-deliver-2018-production-target-206743.html
<![CDATA[RNS press release - Business, Operational and Financial Update Q3 ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181010070004_13822511/ Wed, 10 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181010070004_13822511/ <![CDATA[News - Columbus Energy looks to production growth as it completes Steeldrum acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/206554/columbus-energy-looks-to-production-growth-as-it-completes-steeldrum-acquisition-206554.html Columbus Energy Resources PLC (LON:CERP) has confirmed the completion of its acquisition of Steeldrum Oil Company Inc, the owner of operations in southern Trinidad.

It adds the Innis-Trinity and South Erin fields which presently produce some 150 and 100 barrels of oil per day respectively, along with the Cory Moruga field development project.

The company told investors that it expects to have addressed all issues associated with the integration of the acquired business by the end of this year.

READ: Columbus Energy continues to monitor operations and acquisitions

"We are very pleased to have completed the acquisition of Steeldrum, which I believe will be a material step in the growth of Columbus and establish a very solid base for our Trinidad operations,” said Leo Koot, Columbus executive chairman.

“The company now has a large, well-balanced portfolio of assets strung across the south and south-west of Trinidad. 

“The portfolio includes low-risk but highly prospective exploration opportunities in the South West Peninsula, a development project in Cory Moruga and 5 producing oilfields (Goudron, Innis Trinity, South Erin, Bonasse and Icacos). 

“This provides the company with an excellent opportunity to exploit our existing and new assets through operational excellence and also grow organically through exploration and the Cory Moruga development project.” 

Koot added: “We will now focus on growing production and revenues in Innis Trinity and South Erin through the adoption of a similar operational strategy to our existing fields.”

Columbus is targeting production growth to above 1,000 bopd by the year-end, and, with the addition of Steeldrum is expects to remain cash flow positive.

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Mon, 08 Oct 2018 07:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206554/columbus-energy-looks-to-production-growth-as-it-completes-steeldrum-acquisition-206554.html
<![CDATA[RNS press release - Completion of Steeldrum Acquisition ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181008070004_13819215/ Mon, 08 Oct 2018 07:00:04 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20181008070004_13819215/ <![CDATA[News - Columbus Energy continues to monitor operations and looks to acquisitions ]]> https://www.proactiveinvestors.co.uk/companies/news/205846/columbus-energy-continues-to-monitor-operations-and-looks-to-acquisitions-205846.html Columbus Energy Resources PLC (LON:CERP) has told investors that over the remainder of 2018 it will continue to evaluate its operational results and follow its growth strategy.

Its plan is to enter South America, to leverage its regional operational experience.

“In order to de-risk the portfolio further and provide further opportunities for growth, Columbus is also assessing M&A opportunities in other countries in South America and the Caribbean,” the company said in its interim results statement.

WATCH: Columbus Energy 'well capitalised' as it continues to build portfolio

“Active discussions are currently ongoing with various parties and, as previously noted, the company will be looking for onshore, operational assets in jurisdictions where early actions can be taken to grow production quickly.”

In terms of operational and financial results, the company generated sales of 88,380 barrels from operations Trinidad in the six months to 30 June. The daily rate averaged 485 bopd for the period, with the rate peaking at 648 bopd.

It had £3.6mln of revenue in the first half up from £2.4mln in the comparative period of 2017, meanwhile, it reported a £429,000 gross profit and a £2.46mln net loss, including £2.21mln of admin expenses.

At the end of June, it had £1.8mln of cash.

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Thu, 27 Sep 2018 09:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/205846/columbus-energy-continues-to-monitor-operations-and-looks-to-acquisitions-205846.html
<![CDATA[RNS press release - Unaudited Interim Results ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180927070016_13806232/ Thu, 27 Sep 2018 07:00:16 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180927070016_13806232/ <![CDATA[News - Columbus Energy Resources looks to Cory Moruga development ]]> https://www.proactiveinvestors.co.uk/companies/news/204490/columbus-energy-resources-looks-to-cory-moruga-development-204490.html Columbus Energy Resources PLC (LON:CERP) told investors that a licence extension has been granted for the Cory Moruga block, which will now run to 2032.

The block is owned by Steeldrum Oil Company which is being acquired by Columbus, due for completion later this year.

AIM-quoted Columbus highlighted that the extension allow Steeldrum to start commercial sales from the Snowcap-1 well, which is the beginning of the Cory Moruga field development.

WATCH: Columbus Energy 'well capitalised' as it continues to build portfolio in Trinidad

"The formal extension of the Cory Moruga licence provides the perfect opportunity for the combined Columbus-Steeldrum group to bring a new field onto production before the end of 2018, using existing infrastructure and available funds,” said Leo Koot.

“The combined entity will then have six​ fields on production, providing a more robust production profile and with more options to determine where best to invest our funds to obtain the best "bang for our buck."

Koot added: “The Columbus-Steeldrum management team will continue to focus on ‘quick-wins’ to increase production to be implemented following completion of the transaction."  

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Mon, 10 Sep 2018 07:22:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204490/columbus-energy-resources-looks-to-cory-moruga-development-204490.html
<![CDATA[RNS press release - Cory Moruga Block: Snowcap Licence Extension ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180910070006_13783828/ Mon, 10 Sep 2018 07:00:06 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180910070006_13783828/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180906070007_13780629/ Thu, 06 Sep 2018 07:00:07 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180906070007_13780629/ <![CDATA[News - Columbus Energy says Petrotrin changes are a “big step” ]]> https://www.proactiveinvestors.co.uk/companies/news/203790/columbus-energy-says-petrotrin-changes-are-a-big-step-203790.html Columbus Energy Resources PLC (LON:CERP) executive chairman has described the restructuring of Petrotrin as “big step”.

The planned restructuring of Petrotrin's operations will see the state oil firm stop refining activities, to instead export crude, as it also focusses more on exploration and production.

Columbus, in a stock market statement, said that it expects there’ll be no impact on its crude sales arrangements as it does not interact directly with the refinery - the oil is sold ‘at the gate’ to Petrotrin and Columbus anticipates that the oil will be sold via export.

WATCH: Columbus Energy 'well capitalised' as it continues to build portfolio in Trinidad

"Yesterday's announcement is a big step by Petrotrin to create a strong and economically viable exploration and production business to the benefit of the people of Trinidad and Tobago,” said Leo Koot, Columbus chairman.

“We applaud their commercial strategy and are satisfied that the proposed closure of the Point-a-Pierre refinery will have no negative impact on our Goudron operations and potentially benefit Columbus into the future, if we are able to obtain a higher oil price due to the high quality of our Goudron oil. 

“We have regular meetings with senior Petrotrin representatives and intend to continue to work closely with Petrotrin in the months ahead as they undertake their changes."

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Wed, 29 Aug 2018 12:21:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/203790/columbus-energy-says-petrotrin-changes-are-a-big-step-203790.html
<![CDATA[RNS press release - Petrotin Restructuring ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180829102457_13771299/ Wed, 29 Aug 2018 10:24:57 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180829102457_13771299/ <![CDATA[RNS press release - Issue of Equity, TVR ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180814083437_13754459/ Tue, 14 Aug 2018 08:34:37 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180814083437_13754459/ <![CDATA[Media files - Columbus Energy 'well capitalised' as it continues to build portfolio in Trinidad ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9950/columbus-energy-well-capitalised-as-it-continues-to-build-portfolio-in-trinidad-9950.html Wed, 25 Jul 2018 16:02:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9950/columbus-energy-well-capitalised-as-it-continues-to-build-portfolio-in-trinidad-9950.html <![CDATA[RNS press release - Result of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180713171656_13717981/ Fri, 13 Jul 2018 17:16:56 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180713171656_13717981/ <![CDATA[News - Columbus Energy builds on presence in Trinidad with Steeldrum deal ]]> https://www.proactiveinvestors.co.uk/companies/news/200760/columbus-energy-builds-on-presence-in-trinidad-with-steeldrum-deal-200760.html Columbus Energy Resources PLC (LON:CERP) is steadily building a significant portfolio in the south/south-west of Trinidad.

The group has just agreed on another substantial expansion through the acquisition of local producer Steeldrum for £4.4mln in shares.

Leo Koot, Columbus’s executive chairman, said Steeldrum’s addition gives it a large well-balanced portfolio of assets strung across the south and south-west of Trinidad.

"Until now we've been focused on production from the onshore field at Goudron in Trinidad, but now we can use its cash to focus on the SW Peninsula."

Relatively unexplored

What particularly excites Koot is that the area is relatively unexplored.

Columbus has two small fields there already – Icacos and Bonasse.

Crucial, though, is that Venezuela is just a few km away from the tip of the SWP and the acreage is right in the middle of the East Venezuelan basin, the richest hydrocarbon basin in the world says Koot.

“We’ve already got good data. 3-D seismic with geochemistry and tons of gravity data that has already been interpreted.

"As a result, we have identified more than a dozen prospects, each of which has the potential to hold between 20mln and 400mln barrels individually.

"For us, that is really huge, really big, and materially different from where we were playing before," he adds

Steeldrum already a producer

Steeldrum is producing at a rate of 200-250 barrels oil daily currently and has reserves of 5.6mln barrels at the Innis-Trinity and South Erin fields and 1.1mln within the Cory Moruga development project.

Columbus will also get access to two rigs, which can be used to explore its other assets in Trinidad’s South-West Peninsula.

A US$3.25mln convertible loan facility has been set up with finance group Lind to cover unforeseen integration costs.

Columbus’s own production averaged 553 barrels per day over the quarter to June, with a peak of 648 barrels.

The company was cashflow positive during the three months with gross revenues of US$3.01mln and a US$0.94mln operating netback.

Koot said it is addressing sand production issues at the Goudron and still expects output from the field to reach 1,000 barrels a day during the remainder of the year.

Oil should also start to flow from Bonasse over the second half with a workover rig on stream from next week.

Testing is scheduled to start at Icacos.

VSA maintains punchy target

Broker VSA added that Columbus now has rising production from Goudron and BOLT (acquired earlier this year)  as well as potential additional production from onshore Trinidad properties alongside the considerable exploration potential at the South West Peninsula.

The total potential value of the consideration is £5.8m, which is expected to be signed off in the fourth quarter, is close to US$1.38/bbl which appears attractive, said the broker.

"The full issue would give the vendors, who have significant expertise in the oil and gas industry, 18% of the enlarged share capital of the company which we believe will align their interests with existing shareholders, enabling CERP to pay a lower up-front fee."

VSA repeated its punchy share price target of 25p, which compares to a price today of 5.05p up 9%.

The broker also points out that the Lind convertible loan facility converts at 8.1p per share compared to a 3p conversion price for a previous facility set up in 2016.

Currency benefit

Another incentive for Columbus to get production up and running from the SWP area is the currency benefit.

“At Goudron, we get paid in Trinidad dollars and we have to supply to a refinery. Any crude we produce from the South-West Peninsula we are free to trade ourselves and get paid in US$.”

At 5.05p, Columbus is valued at £30mln. 

 

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Fri, 13 Jul 2018 09:47:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200760/columbus-energy-builds-on-presence-in-trinidad-with-steeldrum-deal-200760.html
<![CDATA[News - Columbus Energy broadens footprint in Trindad with Steeldrum acquisition ]]> https://www.proactiveinvestors.co.uk/companies/news/200737/columbus-energy-broadens-footprint-in-trindad-with-steeldrum-acquisition-200737.html Columbus Energy Resources PLC (LON:CERP) has expanded its footprint in southern Trinidad with the acquisition of Steeldrum for £4.4mln in shares.

Steeldrum is currently producing at a rate of 200-250 barrels oil daily and has reserves of 5.6mln barrels at the Innis-Trinity and South Erin fields and 1.1mln within the Cory Moruga development project.

READ: Columbus Energy shares tipped to soar

Columbus will also get access to two rigs, which can be used to explore its other assets in Trinidad’s South-West Peninsula.

Leo Koot, Columbus’s executive chairman, said Steeldrum’s addition gives it a large well-balanced portfolio of assets strung across the south and south-west of Trinidad.

A US$3.25mln convertible loan facility has been set up with finance group Lind to cover unforeseen integration costs.

Columbus’s own production averaged 553 barrels per day over the quarter to June, with a peak of 648 barrels. The company was cashflow positive during the three months with gross revenues of US$3.01mln and a US$0.94mln operating netback.

Koot said it is addressing sand production issues at the Goudron and still expects output from the field to reach 1,000 barrels a day during the remainder of the year.

Oil should also start to flow from the Bonasse field over the second half with a workover rig on stream from next week. Testing is scheduled to start at the recently acquired Icacos Field.

 “We would hope to see gross production across all of our fields grow continually throughout 2H 2018 and continue to grow well beyond that,” said Koot.

VSA maintains punchy target

Broker VSA added that Columbus now has rising production from Goudron and BOLT as well as potential additional production from onshore Trinidad properties alongside the considerable exploration potential at the South West Peninsula.

The total potential value of the consideration is £5.8m, which is expected to be signed off in the fourth quarter, is close to US$1.38/bbl which appears attractive, said the broker.

"The full issue would give the vendors, who have significant expertise in the oil and gas industry, 18% of the enlarged share capital of the company which we believe will align their interests with existing shareholders, enabling CERP to pay a lower up-front fee."

VSA repeated its punchy share price target of 25p, which compares to a price today of 5.05p up 9%.

The broker also points out that the Lind convertible loan facility converts at 8.1p per share compared to a 3p conversion price for a previous facility set up in 2016.

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Fri, 13 Jul 2018 07:49:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200737/columbus-energy-broadens-footprint-in-trindad-with-steeldrum-acquisition-200737.html
<![CDATA[RNS press release - Acquisition, New Convertible and Business Update ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180713070003_13716473/ Fri, 13 Jul 2018 07:00:03 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180713070003_13716473/ <![CDATA[News - Columbus Energy shares tipped to soar ]]> https://www.proactiveinvestors.co.uk/companies/news/200211/columbus-energy-shares-tipped-to-soar-200211.html Columbus Energy Resources PLC (LON:CERP) shares have been tipped to rise some 460% by VSA Capital which highlighted the potential of the South West Peninsula assets in Trinidad.

VSA has a ‘buy’ recommendation with a 25p price target, compared to the current price of 4.44p.

“The shares have outperformed peers since management took over although we believe that the recent pullback provides an attractive buying opportunity,” VSA analyst Oliver O'Donnell said in a note.

READ: Columbus Energy formalises deal to buy out Touchstone stake in Icacos field

O'Donnell added: “With the operational turnaround at Goudron well underway, management’s efforts have also been focused on unlocking the value in the South West Peninsula where an estimated 1.3BBoe are in place.”

“The announcements in relation to BOLT, and now Icacos, pave the way for exploration drilling in 2019, which will enable the value realised by CERP shareholders to be maximised, in our view.”

The analyst added: “Following the publication of full year financial results we have updated our estimates.

“The stronger recent performance of WTI oil prices has modestly benefited our near term estimates although this has been offset by a slightly slower ramp up and we expect an average of 675bopd through FY 2018 with over 800bopd by year end.

“We have also rolled over the model to reflect a return to profitability for forward earnings. Our Goudron value is adjusted to 17.5p/sh.”

“The benefits of the recent transaction are harder to quantify definitively, however, we believe that operational control will enable CERP to more rapidly advance development than with a partner to whom the development is considered non-core.” 

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Thu, 05 Jul 2018 13:17:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200211/columbus-energy-shares-tipped-to-soar-200211.html
<![CDATA[RNS press release - Update on Director remuneration and options ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180702070312_13700643/ Mon, 02 Jul 2018 07:03:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180702070312_13700643/ <![CDATA[News - Columbus Energy formalises deal to buy out Touchstone Exploration’s 50% stake in Icacos field ]]> https://www.proactiveinvestors.co.uk/companies/news/199460/columbus-energy-formalises-deal-to-buy-out-touchstone-explorations-50-stake-in-icacos-field-199460.html Columbus Energy Resources PLC (LON:CERP) has signed a sale and purchase agreement to buy out Touchstone Exploration Inc’s (LON:TXP) 50% stake in their Icacos field joint venture project in the South West Peninsula of Trinidad.

AIM-quoted Columbus currently owns the other 50% of the project and reached a deal in principle to buy Touchstone’s holding for US$500,000 back in April.

READ: Columbus set to become sole owner of Icacos field

Under the terms of the SPA, Columbus will not pay any of that fee upfront, instead it will pay the consideration over time until January 1, 2021, with Touchstone receiving the revenue it would have received had it retained its interest.

Currently, Touchstone’s share of production is worth around 11 barrels of oil per day, but should production increase, it would be entitled to 25% of any additional net revenue.

Should those payments not meet the US$500,000 price tag before the deadline, Columbus will pay the balance.

After January 1, 2021, Columbus will be entitled to 100% of all revenue from Icacos.

“We are pleased to have signed a sale and purchase agreement for the purchase of a 50% interest in the Icacos field and we look forward to quickly closing the transaction, further strengthening our position in the SWP, so that we can increase production from Icacos and integrate the acreage into our regional strategy,” said Columbus chief executive Leo Koot.

“We are on track to building a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad.

“In line with our ongoing focus on capital discipline, we are not expecting to pay any upfront payments for the Icacos purchase. The consideration will be deferred and mirror the actual production levels from the Icacos field. All operational activities on Icacos will be funded from existing cash resources.”

‘Deal makes sense for both sides’

“Gross production on the field was consistently around 22bopd during 2017 having peaked at 34bopd in 2011,” noted VSA Capital’s natural resources analyst Oliver O’Donnell.

“The Field consists of six wells with three on production although new work programme activities and workovers have been limited recently.

“We believe that the transaction enables both companies to focus more keenly on their core strategies and provides Columbus with a stronger platform from which to explore and unlock the significant potential value we believe exists in the South West Peninsula.”

Shares were up 1.1% to 4.7p in early afternoon trading.

-- Adds share price and analyst comment --

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Mon, 25 Jun 2018 07:57:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/199460/columbus-energy-formalises-deal-to-buy-out-touchstone-explorations-50-stake-in-icacos-field-199460.html
<![CDATA[RNS press release - SPA signed for 50% Interest in Icacos Field ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180625070010_13691206/ Mon, 25 Jun 2018 07:00:10 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180625070010_13691206/ <![CDATA[News - Columbus Energy boasts a “strong position” for growth ]]> https://www.proactiveinvestors.co.uk/companies/news/198672/columbus-energy-boasts-a-strong-position-for-growth-198672.html Columbus Energy Resources PLC (LON:CERP) told investors it is in a strong position for exceptional growth.

Today, the Trinidad-focused oil and gas firm released its financial results statement for the twelve months ended 31 December 2017, which was a significant period of change.

READ: Columbus Energy set to become sole owner of Icacos field

The company, formerly LGO Energy, was renamed and effectively re-launched – with a completely new management team and a fresh strategy.

It materially improved operating efficiencies and strategy at the Goudron field, increasing production (the rate measured 550 barrels of oil per day in December 2017) and accelerating a planned water injection work programme.

Additionally, it advanced efforts to start new exploration drilling in the group’s South West Peninsula acreage and, in the current period, it had agreed to take full ownership of the Icacos field.

At the end of December, Columbus had £4mln of cash and £1.21mln of debt. The company reported a £5mln pre-tax loss including certain legacy costs which won’t recur in 2018.

Columbus is now aiming to drill its first well in the South Peninsular in the first half of 2018, meanwhile, development work is anticipated at the Goudron field where the company is aiming to materially increase production to over 800 bopd by year end.

Fully funded work programmes

In the results statement, it highlighted that it is fully funded for the 2018 plans.

It is expected that the capital spending bill will amount to US$2.6mln for the present year, meanwhile a further US$1.2mln is due to be spent on optimisation and enhancements.

“Our 2018 work programme, fully funded from cashflow, includes: the continued ramp-up of production at Goudron; the reactivation of the Bonasse oilfield; the optimisation of the Icacos oilfield; and the working up of our exploration programme at SWP, as we prepare to drill in 2019,” said executive chairman Leo Koot.

He added: “We have the underlying assets with transformational growth potential, a team with the passion and capability to deliver this and the means by which to do this from our own cash.”

“We have the ideal platform from which to grow.”

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Tue, 12 Jun 2018 07:50:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/198672/columbus-energy-boasts-a-strong-position-for-growth-198672.html
<![CDATA[RNS press release - Accounts for year to 31 Dec 2017 and Notice of AGM ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180612070005_13675391/ Tue, 12 Jun 2018 07:00:05 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180612070005_13675391/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180425070012_13617305/ Wed, 25 Apr 2018 07:00:12 +0100 https://www.proactiveinvestors.co.uk/companies/rns/562/LSE20180425070012_13617305/