Extension of Inniss Trinity IPSC
12 November 2019
COLUMBUS ENERGY RESOURCES PLC
("Columbus" or the "Company")
Extension of Inniss Trinity IPSC - amendment of Minimum Work Obligations
Columbus, the oil and gas producer and explorer with operations onshore Trinidad and Suriname, is pleased to announce the extension of the Inniss Trinity Incremental Production Service Contract ("Inniss Trinity IPSC") to allow for the implementation of the CO₂ Pilot Project and to replace the existing minimum work obligations with the CO₂ Pilot Project.
· Extension of the Inniss Trinity IPSC from January 2020 to December 2021
· Revision of Minimum Work Obligation to replace the drilling of 7 development wells with the CO₂ Pilot Project
Leo Koot, Executive Chairman of Columbus, commented:
"The Company is pleased to have secured an extension to the Inniss Trinity IPSC to allow for the implementing of the CO₂ Pilot Project. We believe the CO₂ Pilot Project 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. In recognition of this, implementation of the CO₂ Pilot Project will replace the existing Minimum Work Obligation of drilling 7 development wells. We look forward to working with the Ministry, Heritage and Predator to implement the CO₂ Pilot Project."
Background - Inniss Trinity IPSC
Fram Exploration (Trinidad) Ltd ("FRAM"), the operator of the Inniss-Trinity field and a wholly-owned subsidiary of Columbus, is party to the Inniss-Trinity IPSC with Heritage Petroleum Company Limited ("Heritage").
The term of the Inniss Trinity IPSC was due to expire in January 2020. It will now be extended until 31 December 2021 provided the Company implements the first phase of the CO₂ Pilot Project by 28 January 2020.
The existing MWO ("MWO") of the Inniss Trinity is the drilling of 7 development wells. The MWO has been amended to be the implementation of the CO₂ Pilot Project.
The Company's interest in the Inniss-Trinity field benefits from an agreement with Predator Oil and Gas plc ("Predator"), whereby Predator will help plan and fund a CO₂ EOR Pilot Project (the "CO₂ pilot project"). As part of agreement with Predator, Predator has the right until to purchase FRAM for US$4.2m. In conjunction with the extension of the Inniss Trinity IPSC and recognising the timeline of the CO₂ Pilot Project, the date by which Predator can elect to purchase FRAM has been extended to 30 September 2020 (or 30 June 2020 should the CO₂ pilot project not progress beyond its first phase).
Qualified Person's statement:
The information contained in this document has been reviewed and approved by Stewart Ahmed, Chief Technical Officer (Trinidad), for Columbus Energy Resources plc. Mr Ahmed has a BSc in Mining and Petroleum Engineering and is a member of the Society of Petroleum Engineers. Mr Ahmed has over 33 years of relevant experience in the oil industry.
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.
Columbus Energy Resources plc
Leo Koot / Gordon Stein
+44 (0)20 7203 2039
VSA Capital Limited
Financial Adviser and Broker
Andrew Monk / Andrew Raca
+44 (0)20 3005 5000
Beaumont Cornish Limited
Roland Cornish / Rosalind Hill Abrahams
+44 (0)20 7628 3396
Public and Investor Relations
Mark Antelme / Jimmy Lea
+44 (0) 20 8434 2643
Notes to Editors:
Columbus Energy Resources Plc is an oil and gas producer and explorer focused on onshore Trinidad and Suriname. In Trinidad, the Columbus Energy group has five producing fields, one appraisal/development project and a highly prospective exploration portfolio in the South West Peninsula ("SWP"), which lies in the extreme southwest of Trinidad and consists of stacked shallow and deep prospects. In Suriname, the Company has recently secured an onshore appraisal/development project. Columbus aims to create transformational growth by developing its portfolio 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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
Quick facts: Columbus Energy Resources PLC
Market Cap: £22.9 m
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...FOR OUR FULL DISCLAIMER CLICK HERE