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Columbus Energy Resources PLC: DEEP DIVE

Columbus Energy set for South American expansion

Output measured 602 barrels of oil per day in the quarter, compared to 607 bopd in the preceding three months.
OVERVIEW: CERP The Big Picture
Existing business is onshore Trinidad
  • Columbus Energy Resources PLC (LON:CERP) has operations in Trinidad

  • Drilling scheduled to start at the South West Peninsular (SWP) in the third quarter, subject to government approvals

  • A detailed technical report by independent geoscience specialists is due in the second quarter and will assist the drilling

  • Columbus is also in ‘exclusive discussions’ over a potential new venture in an unnamed South American country


How is it doing

The existing Trinidad operation increased net cashflow marginally during the first quarter of 2019, despite lower production and lower average oil prices.

Output measured 602 barrels of oil per day in the quarter, compared to 607 bopd in the preceding three months.

The company noted that production peaked at 1,000 bopd in late January, and it highlighted that the rate exceeded 860 bopd on three occasions during the period.

Columbus ended the quarter with US$2.06mln in cash.

It generated US$400,000 of cash flow in the three months, whilst gross revenues reduced by 14%.

Columbus said:  “With lower oil prices and the impact of SPT at 18% between US$50-US$60/bbl, we have taken action to reduce our rig activity and we have also reduced operating costs in a number of other areas. 

“Despite the lower production and resultant lower revenues, we have slightly increased our cash netback from operations.”

Existing production provides cashflow for G&A and free cash now starting to deploy in SWP.

C02 injection is planned at Inniss-Trinity to boost production. 


Next steps

Columbus is awaiting approval for its detailed work programme for the 2019-2021 period,

One well is planned at first and 3-5 over the longer term.

Once approvals come through, work can start in the third quarter of this year.


Expansion in South America

Columbus is in ‘exclusive discussions’ over a potential new venture in an unnamed South American country.

Working on project for nearly a year, have completed a 90-day tender process.

An existing hydrocarbon province and close to large discoveries, with a field next door producing 15-20,000 barrels per day for a number of years

Additionally, a number of other mergers and acquisition opportunities are being considered, consistent with the company's strategy roadmap.

In Trinidad, spreading risks over different types of activity but it's good to be operating in other countries as well says chairman Leo Koot.


What the boss says, Leo Koot executive chairman

 “We have successfully re-negotiated the commercial terms of the SWP licences in a manner which makes them far more attractive than the commercial terms we have for the other assets in our portfolio. 

“Entry into another country will start the process of expanding our footprint and reducing our exposure to just one country of operation” 




Inflexion points

Approval and start of drilling at SWP 

Comfoirmation of acquisition in South America

Strat of C02 injection on existing Trinidad fields


Blue Sky

Looking at other opportunities, one potentially in the Americas.


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Columbus Energy Resources PLC Timeline

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