07:00 Thu 22 Feb 2018
Columbus Energy Res - Business update - La Lora Concession in Spain
("Columbus" or the "Company")
Business Update - La Lora Concession in
Columbus, the oil and gas producer and explorer focused on onshore
As previously announced by the Company on
Following such closure, Columbus intends to participate in the tendering process for a new concession (expected Q2-Q3 2018). The duration of the tendering process, however, is still un-certain and, as such, the Company is not prepared to un-necessarily continue to bear the ongoing costs of the employee suspensions which commenced under Spanish law on
The CDP will take approximately 30 days to complete. The cost of the CDP, an estimate of which is included in the Company's 2018 Budget, will be fully met from currently available funds within the Company.
The closure of the Concession has been a protracted and frustrating process for the Company with an apparent disregard by the Spanish authorities towards maintaining the employment of staff in the Burgos area. It should have been a relatively short and straight-forward process to close out the Concession to enable the tender for the new concession to take place but, despite these delays, the Company has continued to meet its ongoing obligations on the Concession, including meeting the staffing, legal and operational costs associated with keeping the field in good order. This has involved the Company continuing to provide funds to CPS of approximately
"We have taken a very difficult decision, affecting our remaining employees in
"We would like to thank the ongoing support we have received from the community local to the Ayoluengo Field, including the trade unions and local politicians. Despite the latest developments we are committed to re-applying for the new concession and obtaining value from our investment and today's news is not impacting our overall strategy and delivery of our Trinidadian assets which are the main cash generator and opportunity for growth of the business."
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Contact Information
|
+44 (0)20 3794 9230 |
Financial Adviser and Broker |
+44 (0)20 3005 5000 |
Nominated Adviser |
+44 (0)20 7628 3396 |
Camarco Public and Investor Relations |
+44 (0)20 3757 4983 |
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