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Columbus Energy draws US$1.5mln to speed up Saffron well

Columbus said it is a precautionary measure to ensure the completion of the well safely, while also speeding up operations to optimise the potential of any discovery

Columbus Energy Resources PLC - Columbus Energy draws US$1.5mln to speed up Saffron well

Columbus Energy Resources PLC (LON:CERP) has drawn an additional US$1.5mln under a funding agreement with investment manager Lind Partners for the Saffron well in Trinidad.

The oiler said last week the well is in the drilling phase, which is continuing as planned.

READ: Columbus Energy cheers encouraging early results from Saffron well

The loan was agreed to speed up operations, with the money available in three US$1.5mln tranches, the first of which was drawn in November.

This is the second tranche, which Columbus said is a precautionary measure to ensure the completion of well safely procedures, while also speeding up operations to optimise the potential of any discovery.

The company added it does not intend to draw the third tranche either this or next year.

The money will have to be repaid over two years either in cash or shares.

“As with any drilling campaign, it is prudent to have sufficient cash resources to complete the well safely and efficiently and without compromising the objectives of the well,” executive chairman Leo Koot said in a release. 

“Drawing down tranche 2 under the agreement allows us to do that and also allows us to monetise it in the event of a successful discovery.”

Quick facts: Columbus Energy Resources PLC

Price: 2.7 GBX

AIM:CERP
Market: AIM
Market Cap: £22.9 m
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