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Columbus Energy looks to production growth as it completes Steeldrum acquisition

The transaction adds the Innis-Trinity and South Erin fields which presently produce some 150 and 100 barrels of oil per day respectively

oil and gas operations
Columbus is targeting growth to above 1,000 bopd

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.

Quick facts: Columbus Energy Resources PLC

Price: 1.94 GBX

AIM:CERP
Market: AIM
Market Cap: £18.14 m
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