Columbus Energy PLC (LON:CERP) announced that it has successfully restructured the Beach Oilfield Limited (BOLT) transaction in the South West Peninsula of Trinidad on materially improved terms.
The AIM-listed oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America also said it has entered into an agreement for lease with Singh's (Cedros) Estates Limited to gain long-term access to the South West Peninsula for oil and gas operations, including the Bonasse oilfield.
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Leo Koot, Columbus Energy’s executive chairman pointed out that the two agreements mean the group has obtained 100% operational control over a large area (approximately 8,700 acres) in the South West Peninsula including mapped multiple prospects of 20-400 million barrels in place, which it is intent on exploring,
Koot said: "Today's news is a major milestone for Columbus and further delivery of our strategy to build a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad.”
He added: “In line with our ongoing focus on capital discipline, the payments due under the renegotiated BOLT transaction and new lease arrangement are fully funded from existing cash resources and are included in the Company's 2018 Budget.”
First well potentially to be drilled in first-half of 2019
Koot continued: “Our fully funded 2018 work programme in the SWP includes commencing a well reactivation programme in Q2 2018 on the Bonasse field, alongside undertaking further analysis of the good quality 3D seismic and other data, with the first well potentially being drilled, subject to satisfactory technical analysis, in the first half of 2019. “
The executive chairman concluded: “This is a very exciting time for the Company and all involved and provides a unique opportunity to potentially deliver transformational growth of our business to the benefit of our shareholders and Trinidad & Tobago."