Columbus Energy Resources Share Discussion Threads

[greatfull dead] 21/12/2017 08:26

Ed,

As you say "Perhaps no frills that we'd been hoping for but a very solid start for LK and his team. Still the fastest growing independent in T&T and now cash flow positive to build for the future and increased production."

Rome was not built in a day. Mr Koot has delivered with imho a very transparent RNS. I am looking forward to major developments throughout 2018. Also cash in the kitty to proceed at a steady rate.

ATB,
GD

[jcgswims] 21/12/2017 08:25

From bigdouble

Vsa Today 08:22

Columbus Energy Resources (CERP LN) has provided an operational update demonstrating the achievement of key milestones in 2017 which pave the way for a strong operational and financial performance in 2018. CERP has beaten its 2017 target for 550bopd by year end with production reaching 561bopd in December. Whilst we maintain our estimates and forecast average production of 900bopd during 2019 the company has provided indicative high and low production scenarios where 2018 year end production reaches between approximately 900-1,550bopd.

CERP are in the process of a significant operational overhaul which includes changing operating practices as well as upgrading equipment and infrastructure. Given the management team’s experience the scenarios presented demonstrate its preparedness for any unforeseeable challenges which might arise. However, given the asset potential with wells such as GY-670 producing at over 1,100bopd historically along with the broad expertise of the team we remain confident that our 900bopd estimate for average 2018 production can be met. To further strengthen the operational team, CERP, have announced the appointment of a Field Operations Manager, Troy Wilson; an experienced local oil and gas professional who joins from Schlumberger.

To date the incremental production achievement has been completed at minimal capital cost of just US$350k. As a result of these operational improvements along with an increase in the WTI oil price and cost efficiencies in Trinidad and corporately we believe that having exceeded its 2017 year end production target the company is now producing positive operating cash flow. As the production ramp up continues we expect CERP to begin to generate free cash flow during 2018.

In addition to the operational announcements CERP has provided an update on the South West Peninsula as well as Spain. Negotiations in relation to the BOLT license are ongoing and CERP, with the support of newly appointed Legal and M&A Director, Tony Hawkins are positive that new commercial agreements will be confirmed in the near future. Mr Hawkins has over 20 years’ experience at oil and gas companies, including Centrica. Subsequent to the commercial agreement being finalised CERP intend to reactive the Bonasse field during 2018. With regard to Spain, CERP has indicated the closure of the concession will occur in February 2018. A Tender process for the new concession is expected to begin during Q2 and Q3 2018.

Following the recent fundraising activity combined with the operational improvements, CERP is fully funded for its planned development programme in 2018. CERP continues, in our view, to make strong operational progress and having beaten its year end production targets has laid the foundations for a strong 2018 in which the full financial benefits of the operational turnaround will begin to be felt.

We reiterate our Buy recommendation and 26p target price

[offerman] 21/12/2017 08:23

Are the markets open tomorrow ?

[astorcourt] 21/12/2017 08:18

Edgein.

Trinity is the fastest growing oiler in t&t, not Columbus. You Plonker.

[edgein] 21/12/2017 08:16

Good news Mr Koot has delivered so far on all targets even with the challenges that he's currently on top of. Very professional operation. 71% production growth in around 6 months is an excellent start, with another 71% predicted for 2018. High end target for 2018 is up to 1600bopd with the 900bopd being the conservative low end production target. Cash flow positive also includes the modest Spanish costs and the small Lind debt has been paid for several months from our $6m cash balance and cash flow. Debt is tiny compared to the other T&T companies so a great place to build from. I'm liking the way that if they spot an issue they deal with it and has allowed them to hit all their targets and get 71% growth in production. Sounds like BOLT is going to be signed off early next year and they'll be able to move forward on the SWP assets after that. Perhaps no frills that we'd been hoping for but a very solid start for LK and his team. Still the fastest growing independent in T&T and now cash flow positive to build for the future and increased production.

Regards,
Ed.

[ccr1958] 21/12/2017 08:15

Morning mugging in process! Hold on tight .

[ccr1958] 21/12/2017 08:10

Great start !

[mally6] 21/12/2017 08:08

T.w shareprophets ramp this one with his 27p targets always do the opposite of what he says

[astorcourt] 21/12/2017 08:06

Bring back Ritson

[ride daice] 21/12/2017 08:05

The good, the bad and the ugly. I bet they've had a few laughs about that in the office.

[astorcourt] 21/12/2017 08:05

another overhyped CEO disappoints. bring on the next placing.

[offerman] 21/12/2017 08:05

Plummeting ffs

[offerman] 21/12/2017 08:03

How are shares being traded before market opens ? Grey market?

[offerman] 21/12/2017 08:02

Morning mark but how would they have known yesterday ?

[the guardian] 21/12/2017 07:59

Some people on LSE had ridiculous expectations and so I wouldn't like to bet on which way the price will go today. It's a long term investment for me, so best to go out and forget about it.

[markbarker] 21/12/2017 07:58

Off not that bad but that's why the large amount on offer yesterday

[goalscorer] 21/12/2017 07:57

jcg, that is precisely what I have been banging on about and also made a reference to the pump supplier in my other posts. No way it would've been plain sailing. Old stale management, technology, work force, practices, etc needed refining. Only y'day I said just a midgen bit above 550 is 'over-deliver'.

No teaser about the early results of WF, except that it's commenced.

I think the hype brigade will move on... let's see the real long term holders.

[offerman] 21/12/2017 07:50

Looks that way .All the expectations for 700 800 buyers will sell out no doubt on this news.

[jcgswims] 21/12/2017 07:42

Great video, refreshingly honest. They don't shy away from problems they've had. The most important thing is, they've rectified these problems and will continue to tackle any problems that may arise. Open, honest and realistic.

Leo and the team have achieved what they set out to do. Producing more cash than they are spending. Who would have thought that at the beginning of this year.

Take note of the team's targets and have those in your mind as expectations. I did with the 550bopd and cash flow positive target and they've not let me down.

[ccr1958] 21/12/2017 07:24

All priced in ?

[ulvers] 21/12/2017 07:22

Mr Koot has achieved everything promised, CF+ and 550 bbl + and with higher oil prices than anticipated.
What more can we say 2018 looks exciting.

GLA

[ccr1958] 21/12/2017 07:20

Morning all , moving forward !

[nexus7] 21/12/2017 07:08

Columbus Energy Res
Operational, Financial and Management Update
RNS Number : 0009A
Columbus Energy Resources PLC
21 December 2017

[ducatiman] 21/12/2017 07:08

targets met, look forward to the next one.

[kazz] 21/12/2017 07:05

Still waiting