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Columbus Energy Resources PLC

Columbus Energy Resources to decommission Spanish field

Columbus doesn't expect any material cash expenditure in relation to the decommissioning of the La Lora Concession

oil and gas operations
It had hoped to pick up the Ayoluengo field again via re-tender

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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Price: £0.05

Market: AIM
Market Cap: £38.32 m
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