Columbus Energy Resources Share Discussion Threads

[12bn] 12/7/2017 16:56

Cedros Leases: LGO holds a 100% interest in a number of new leases totaling 815 acres to private lands adjacent to the Icacos Field to which the subsurface rights have been assigned to the Company. Additional areas are under negotiation and once these are secured a Private Petroleum Licence will be applied for from the Ministry of Energy and Energy Affairs covering all these leases, with work anticipated to commence in 2012.//////// NO WELL HAS BEEN DRILLED BY LGO/CERP in the Cedros,not in 2012,not in the 5 years since,why? The answer is simple,COST,it is just too high,too risky. Koots is cost cutting in the hope of breaking even in Trinidad but I expect that the task will prove impossible and an NR type placing/Seda tap will arrive here soon,imo. As for Cedros,it will not get drilled imo but on the off chance that Koots gets a JV then LGOs/CERPS contribution will need a truly massive discounted dilution to raise $7m or $8m and then it is a pure gamble.

[12bn] 12/7/2017 16:52

Here is the relevant RNS,note the last paragraph.//////RNS Number : 3713P

Leni Gas & Oil PLC

03 October 2011

Immediate Release, 7 am

3October 2011

Leni Gas & Oil PLC

("LGO" or the "Company")

Major Acquisition in Trinidad and

Completion of a GBP 5 million Equity Line Facility

Leni Gas & Oil plc today announces the acquisition of Goudron E&P Limited ("GEPL"), a company which holds exclusive rights to acquire the Incremental Production Service Contract ("IPSC") for the Petroleum Company of Trinidad Limited ("Petrotrin") owned Goudron Field in onshore south-eastern Trinidad.

Highlights:

-- The Goudron Field was originally developed by Texaco

-- The existing producing zones have reserves of proven 1.9 mmbbls and estimated 3P reserve of 21.8 mmbbls

-- The concession covers a total of 2,875 acres (11.4 sq km) which more than doubles LGO's land holding in Trinidad

-- The current production comes from a small number of active wells out of a total of 152

-- Production potential has been estimated to be in the range 1,000 to 4,000 bopd

-- The drilling of new infill wells could commence in early 2012

-- Additional undeveloped reservoirs in the Gros Morne (Upper Cruse) and Lower Cruse formations provide considerable opportunities for future reserves growth

-- Much of the concession is underexplored and significant exploration opportunities exist

-- LGO is acquiring 100% of the rights under the IPSC and will become operator

The Gourdon Field lies between the East Moruga, and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline to the Pointe-a-Pierre refinery in western Trinidad. The field was originally discovered by Trinidad Leaseholding Limited in 1927 and was developed in its current form by Texaco between 1956 and 1986 when it passed to Petrotrin. A field reactivation contract was signed in late 2009.

The field has had very little investment over the last 25 years, and the existing production comes from about 30 wells, of which 12 are on production with beam pumps and the others flow naturally or are periodically swabbed. Recent production has ranged between 100 and over 200 bopd. The oil reservoirs are generally between 300 and 3,500 feet below surface and the oil is light low sulphur crude with an API gravity ranging between 25 and 55 degrees and a mean of 32 degrees. GOR is variable and generally higher in the deeper Gros Morne (Cruse equivalent) reservoir zones.

GEPL was previously owned by Sorgenia Trinidad and Tobago Holdings Limited ("Sorgenia"), and based on studies carried out by Sorgenia the oil in place in the existing producing zones is estimated to be between 120 and 225 million barrels STOIIP, with a P50 estimate of 166 mmbbls. Proven reserves of 1.9 mmbbls are currently estimated within the field area and can be recovered using existing wells and a small number of infill wells. Proven and Probable reserves are estimated at 8.0 mmbbls. Additional recoverable reserves which can be produced from hydraulically fractured wells add a further 13.8 mmbbls. Contingent Resources are also attributed to future potential water injection or other EOR schemes.

Cumulative historic production from the field has totaled only 4.8 mmbbls, most of that between 1956 and 1980 when Texaco were actively operating the field and during which time most of the field wells were drilled. Studies by various companies have concluded that the existing field has the immediate potential for roughly 40 routine simple work-overs, up to 20 recompletions and numerous possible hydraulic fracturing operations. Further areas of unswept and undeveloped oil pay could be developed with infill wells.

LGO has assessed the opportunity for an initial work-over programme aimed at improving the production from up to 50 existing wells and estimates that production can be raised to 450-500 bopd through work involving well clean out (sand removal), limited reperforation and the installation of additional electrical pumps (either beam and downhole PCP). A preliminary estimate of the cost of that programme, which could take 12 to 18 months to execute, is US$4 million.

During their operations Texaco hydraulically fractured 23 wells in the main Goudron Sands and a further 5 wells in the deeper Cruse equivalents. These wells had average production increases of between 5 and 10 fold after fraccing and it is anticipated that with modern hydraulic fraccing techniques, especially on new wells, better results can be obtained due to the significant advances in technology over the last 50 years.

Additional potential in deeper reservoirs and in underexplored portions of the concession add considerable further reserves potential. There is also potential for gas production which was previously unexploited due to the absence of a local market, but which could now be exported through existing infrastructure. Petroleum rights under the IPSC extend down to 5,000 feet subsea. The current term of the IPSC has 8 years remaining and the IPSC contains an extension period of 10 years running to 2030.

GEPL was incorporated in March 2011 as a special purpose vehicle in Trinidad to hold the IPSC option rights and had no accounts.

The assignment of the IPSC requires the approval of both Petrotrin and the Trinidad and Tobago Ministry of Energy and Energy Affairs. The application process was started in August and it is anticipated to take up to a further 3 months to conclude.

Mr. Alex Almandoz, a Trinidadian with 26 years of experience in the oil and gas industry and owner of Altech Services Limited, a local rig service company, has been appointed as LGO's Country Manager in Trinidad and will be directly responsible for all LGO activities.

In early 2011 the Company indicated that it wished to increase its portfolio in Trinidad. Since that time LGO has acquired leases to 815 acres of previously unexplored prospective land adjacent to the Icacos Field where the Company owns a 50% interest, and has farmed-in to the Advance Oil Company (Trinidad) Limited Moruga North leases with a view to drilling up to 9 wells in the next two to three years. The first well is anticipated to be spudded in spring 2012. The acquisition of the rights to be assigned the operatorship of the Goudron Field considerably enhances the Company's position in Trinidad.

Consideration:

-- LGO has paid Sorgenia US$1 million to acquire 100% of the outstanding shares in GEPL

-- Contingent on the successful completion of the transfer of the IPSC to LGO a further consideration of US$1 million will be paid to Sorgenia International BV for the geological, reservoir engineering and environmental studies conducted on the field

-- Conditional payments to Sorgenia International BV will also be payable when and if field production reaches 1,000bopd (US$1 million) and 2,000 bopd (US$2 million). Based on initial field redevelopment plans these levels will be reached in early 2013 and in 2014 respectively

-- A payment of up to a maximum of US$4 million will also be due on transfer of the IPSC

The Company also announces that it has secured a three year Equity Line Facility ("ELF") of up to GBP5 million with Dutchess Opportunity Cayman Fund Ltd ("Dutchess"). The ELF has been arranged by First Columbus LLP ("First Columbus"), Dutchess's joint venture partner in the UK.

The ELF offers the Company ongoing access to capital as it enables the Company to obtain funding from Dutchess at any time during the next three years by way of subscription for new ordinary shares in the Company. Subscriptions will be priced at a 5 per cent discount to the market price and will take place at timings and intervals and in sizes solely determined by the Company, subject to the agreed mechanisms specified under the ELF.

The ELF may be drawn down in tranches linked to the Company's average daily trading volume in the three days prior to the notice of draw down or in other specified amounts. The Company is able to specify a minimum acceptable price for each tranche to prevent shares being sold in the market at an unacceptable discount. Currently LGO has not drawn on the ELF facility.

The Company expects to provide an update on its ongoing operations in Spain shortly.

Neil Ritson, LGO's Chief Executive, commented:

"We are delighted to have been able to acquire the rights to the Goudron Field since we feel this offers an exciting opportunity for LGO to make a step change in its growth in Trinidad through both incremental production and exploration.

Experience gained elsewhere, especially in Spain, will allow us to maximize the opportunities in this field. The simultaneous acquisition of the comprehensive recent studies allows us to move very quickly to exploit these opportunities. The provision of a standby equity facility will provide access to working capital if needed. "

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Leni Gas & Oil Plc who has 35 years of relevant experience in the oil industry. Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

Notes to Editors:

In addition to the assignment of the Goudron IPSC, the Company holds the following assets in Trinidad.

Icacos Field: a 50% interest in the Private Petroleum Licence area covering a total of 1,900 acres including the producing Icacos oilfield in the Cedros Peninsula onshore in south western Trinidad. The Icacos Field is operated by Primera Oil and Gas Limited, now a subsidiary of Touchstone Exploration Inc. Production from the Miocene Upper Cruse Formation in the field is currently derived from just three of the 14 wells and year to date production has averaged 18 bopd net to LGO's interest. A production enhancement programme aimed at lifting gross production to over 150 bopd has been under consideration for some time. Deeper exploration targets within the East Venezuelan Basin below the shallow producing Cruse are also of significant interest.

Cedros Leases: LGO holds a 100% interest in a number of new leases totaling 815 acres to private lands adjacent to the Icacos Field to which the subsurface rights have been assigned to the Company. Additional areas are under negotiation and once these are secured a Private Petroleum Licence will be applied for from the Ministry of Energy and Energy Affairs covering all these leases, with work anticipated to commence in 2012.

[12bn] 12/7/2017 16:45

Edgein12 Jul '17 - 16:14 - 252 of 253 1 0
TG,

Well if one of those large Cedros targets comes in at 200mmbbls that LK has his eye on then there's $500m right there. Even if its a 50% carry it would make up the most of a $500m cap. 78p per share certainly gives good upside on 2.9p. :)

Regards,
Ed./////// PMSL at that rampety ramp post. A single well drilled to 12000 ft at Cedros was once estimated to cost $15m-$20m,now just where is skint LGO/CERP going to get the cash for that from? Ask yourselves why the Cedros has never been drilled by LGO/CERP despite talking about it back in 2011. It is unrealistic 'pie in the sky' blatant ramping and Koots just sounds like NR on steriods when it comes to ramping! The next RNS here is likely to be a big discounted placing,imo.

[ride daice] 12/7/2017 16:44

If you ever bump into Leo say "Hello Mr. Coat".

He'll like that.

[the guardian] 12/7/2017 16:25

Yep, I've never had a 26 bagger before.

[edgein] 12/7/2017 16:14

TG,

Well if one of those large Cedros targets comes in at 200mmbbls that LK has his eye on then there's $500m right there. Even if its a 50% carry it would make up the most of a $500m cap. 78p per share certainly gives good upside on 2.9p. :)

Regards,
Ed.

[carpadium] 12/7/2017 13:08

Rapid advancement appears to be one of LK's hallmarks so, whilst field ops are progressing nicely up to the point of permissions, think we can reasonably expect Leo to be looking at ways to re-model the $100K monthly LIND repayment to speed up field changes even further. It would be a good example of accretion in play.

[thenorth] 12/7/2017 11:37

Interesting watching that spread...

[edgein] 12/7/2017 11:02

Nice to see folks pick these up at half price based on current reserves, I say current reserves as water flood is to kick off this Q which will transform more of the contingent into proven and probable. As LK suggested up to 150bopd from the Mayaro wells and up to 500bopd possible from some of the C-sands wells. That sort of upside is transformational given the amount of well stock that the company has open to conversion to injectors or producers.

Regards,
Ed.

[the guardian] 12/7/2017 10:42

We seem to be taking off again!

[nexus7] 12/7/2017 08:13

Oil Gains as API Is Said to Report U.S. Crude Stockpile Draw

July 10, 2017, 7:29 PM EDT
July 11, 2017, 5:27 PM EDT

→ API said to report crude supplies fell 8.13 million barrels
26 EIA cuts 2018 production forecast to 9.9 million barrels a day

Oil climbed higher after an industry report was said to show U.S. crude stockpiles fell by the most since September.

Crude inventories declined by 8.13 million barrels last week in the American Petroleum Institute report released Tuesday, people familiar with the data said. It would be the biggest drop since September when compared with EIA data. Earlier Tuesday, the agency cut its 2018 crude output forecast to 9.9 million barrels a day from 10.01 estimated in June...

[12bn] 12/7/2017 07:32

Name Symbol Market Type ISIN Description
Columbus Energy LSE:CERP London Stock Exchange Ordinary Share GB00BDGJ2R22 ORD 0.05P
Click here to watch Columbus Energy live without interruption
Change % Chg Cur Bid Offer High Low Open Volume Chg Time CONTENDED RN NRN
0.00 0.0% 2.525 2.40 2.90 0 07:30:02

Sector Turnover (m) Profit (m) EPS - Basic PE ratio Mkt Cap (m)
OIL & GAS PRODUCERS 4.5 -11.9 -0.21 0.0 13.6

Type Size Price /////// Market cap of £13.6m for a serial loss maker,looks far too high imo.

[carpadium] 11/7/2017 12:22

2.5p ... now that has to be a bargain!

[the guardian] 11/7/2017 10:03

It's smaller now but the problem with a sensible spread, say 2.45 2.55 is that it would be more difficult for them to confuse the buys and sells.

[thenorth] 11/7/2017 08:27

That's quite a spread eh chaps??

[substp] 11/7/2017 07:44

14 blocks in total.



notice there are "open acreage" and "open acreage (deep only)"

[nexus7] 10/7/2017 19:31

20th WorldPETROLEUMCongress
…
In the meantime, the immediate priorities for minister Ramnarine’s four more years in office are unquestionably halting the haemorrhage in crude oil production by encouraging as much exploratory drilling as possible, especially in deeper water and deeper land horizons – as well as the determined application of enhanced oil recovery (EOR) methods. A 20 per cent investment allowance for EOR in land fields was introduced in 2010, covering such applications as water flood, steam injection and carbon dioxide (CO2 ) sequestration. Geologists feel there is potential for recovering another one billion barrels of oil this way. The big prize for oil, however, may well lie in water depths between 1,700 to 2,000 metres out in the Atlantic Ocean to the east of Trinidad…

(Or Very deep at Goudron ??? as LK suspects)

[jcgswims] 10/7/2017 18:14

CERP Twitter

Columbus ERP‏ @Columbus_ERP · 43m43 minutes ago
Today's announcement provides a full update on all of the Company’s current work programs, all funded by existing cash resources

Columbus ERP‏ @Columbus_ERP · 44m44 minutes ago
Head office move complete, delivering on strategy to reduce corporate costs with further reductions planned.

Columbus ERP‏ @Columbus_ERP · 44m44 minutes ago
Great article from Proactive Investors following this mornings announcement


Columbus ERP‏ @Columbus_ERP · 31m31 minutes ago
“I am am hugely excited by the quality and potential of our assets. We are confident that the multiple work programs set out...” (1/3)

Columbus ERP‏ @Columbus_ERP · 31m31 minutes ago
“… today will help us achieve our short term goal of becoming cash flow positive in Q4 2017 and…”(2/3)

Columbus ERP‏ @Columbus_ERP · 32m32 minutes ago
“…create a company with a sustained and strong production base from which to grow” – Leo Koot (3/3)

[the guardian] 10/7/2017 16:55

Looks like the market wanted to see the results of the change in strategy rather than see it spelled out. Never mind, we are on our way now and hopefully, the next time we get an RNS it will include figures showing an increase in oil production as well as permit issues etc.

The days of diluted holdings are behind us and according to Leo, the days of growth and self financing are ahead. Can't wait. Bring it on!

[nexus7] 10/7/2017 15:25

Oil Fields Pumping a Third of Supply Die Fastest in 24 Years

→ Weak prices forcing producers to cut spending on older assets
→ Output slide may aid OPEC’s bid to eliminate glut, Rystad says

The tussle for supremacy between OPEC and U.S. shale drillers is killing off older oil fields at the fastest pace in almost a quarter century. That could hurt the industry once the current glut has faded.

The three-year price slump triggered by the battle for market share choked off funds for aging deposits elsewhere, accelerating their decline. Output at older fields from China to North America -- making up a third of world supply -- fell 5.7 percent last year, the most since 1992, according to Rystad Energy AS. It’ll drop about 6 percent in 2017 if oil stays at current prices, the consultant said...

[12bn] 10/7/2017 14:18

Quarterly production update

Average production from the Goudron Field in Q2 2017 was 327 BOPD. Production was lower at the end of the quarter, significantly impacted by the Tropical Storm Bret on 19 June 2017, the worst storm to hit Trinidad in over 10 years, which cut external power supply to the field for over 1 week and consequently resulted in significantly reduced production operations for a longer period. Sustaining significant damage to overhead power lines///////// Oh dear,not good.I wonder how that will impact the water-flood plans? I guess with global warming these bad storms will become more frequent.

[nexus7] 10/7/2017 13:35

jcg,
Many thanks and well done :0))

[jcgswims] 10/7/2017 13:20

CERP Twitter

Columbus ERP‏ @Columbus_ERP · 19m19 minutes ago
CERP's new management complete initial review. Focus to become cash flow positive by Q4/17. #Fundamentalchange goo.gl/DbPkjL

Columbus ERP‏ @Columbus_ERP · 11m11 minutes ago
A number of targeted initiatives, focused on optimising recovery and production, are being implemented using existing cash resources.

[jcgswims] 10/7/2017 12:43

Columbus Energy
An operational update from the new management team at CERP whom I have met and am extremely impressed by. Current production is only 327 bopd which has been hit by Tropical Storm Bret but will by now be back up to 380-420 bopd. The new team, CEO Leo Koot and CFO Gordon Stein, with an experienced Trinidad MD are identifying best ways to increase production and raise cash flow from existing resources. Initiatives announced today should raise production by implementing a multi-interval approach to the Goudron Field water-injection starting this quarter. The short term goal is to become cashflow positive by the 4th quarter of this year and to grow strongly in future, the team is assembled, watch this space