Columbus Energy Resources (LON:CERP)
Columbus Energy Resources (LON:CERP) has provided an update on the South West Peninsula (SWP) Saffron well where drilling is ongoing. CERP had previously indicated it would update investors after 45 days and today’s announcement indicates that whilst oil bearing intervals have been intercepted in both the tertiary and secondary targets as expected the primary target has not yet been reached.
High formation pressures have also been experienced in the secondary target and the company has taken steps to ensure that wellbore stability is maintained during the process. With this careful approach the company is now drilling the 8 ½” hole section to reach the target depth of drilling which includes the primary Lower Cruse target. Once achieved CERP will carry out production testing and update investors accordingly which will provide the key result, in our view.
We reiterate our Buy recommendation and 21.6p target price.