Proactive Investors - Run By Investors For Investors

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.

View full CERP profile View Profile

Columbus Energy Resources PLC Timeline

Related Articles

April 08 2019
The South Disouq project has been pushed back towards the end of 2019
oil rig
May 08 2019
The NJOM3 well will be drilled to a total depth of 1,100 metres intersecting at least three reservoir zones
oil rig
May 10 2019
The core of the portfolio is in the East Midlands Basin, which includes the Wressle-1 oil discovery,

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use