Columbus Energy Resources Share Discussion Threads

[offerman] 19/3/2018 13:28

Purple waistcoat .... Nice news MR LK and Team.

[droftarts] 19/3/2018 13:13

Great News. I see this as a really significant milestone. Really good RNS.

[jcgswims] 19/3/2018 12:39

CERP Tweet

Columbus ERP‏ @Columbus_ERP · 7m7 minutes ago
#CERP gains 100% operational control over a large area in the #SouthWestPeninsula including mapped multiple prospects of 20-400 million barrels in place, which we intend on exploring.

[jcgswims] 19/3/2018 12:35

Columbus Energy Resources
CERP has announced today that it has re-negotiated the BOLT transaction which had been an unwanted millstone around its neck for some time. Under the restructuring CERP gets 100% and operational control of 8,700 acres of the South Western peninsula including a number of mapped multiple prospects potentially in place. Also included is the Bonasse oilfield which is currently producing at a very low level and will be reactivated in order to maximise production. The SWP is said to have between 20-400m barrels of oil in place which gives the company significant upside should they achieve exploration or even redevelopment success in the area. This includes commencing a well reactivation programme in Q2 2018 on the Bonasse field, alongside undertaking further analysis of the good quality 3D seismic and other data, all of which are fully funded under existing plans and include any payments under the renegotiated BOLT transaction.

Changes to the overriding royalty rates that have been agreed including their timing and cap on such rates mean that any success in the area should benefit all stakeholders. Indeed, with the company planning a reactivation programme in Q2 of this year in the Bonasse field as above, and further analysis of the 3D seismic and other data to be followed by the first well potentially being drilled in 1H 2019 prospects look very good. The renegotiation of this tiresome contract has been consuming management time for too long now and at long last a deal has been struck that benefits pretty well all stakeholders, certainly CERP investors and Petrotrin which must be a good thing.

[ride daice] 19/3/2018 12:12

TG,

I think what the company is doing is perfectly logical. 2018 will be used to generate cash and do all of the SWP analytical work. I expect that much of this work will go under the radar of most PI's thus providing a wonderful opportunity to top up in advance of the 2019 fireworks. I won't be wishing my life away but I will be filling my boots.

[the guardian] 19/3/2018 11:00

The low case scenario for the end of this quarter leaves production virtually unchanged. The high case scenario is in the order of 660 bopd.

It will be interesting to see how we are progressing and if any further legacy issues have been encountered. Once the drilling starts in the SWP, we should take off quite rapidly. I would say roll on 2019 but I am getting too old to start wishing my life away. Looks like all going to plan or slightly ahead of plan if we start clean ups on the Bonasse field during the next few weeks.

[nexus7] 19/3/2018 09:56

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[arrynillson] 19/3/2018 09:50

12bn - are you still targeting your 2p sell price 12bn?

[12bn] 19/3/2018 09:23

Ifs and buts Northpole2 and the deep wells are years and years away. There is plenty of time for the share price to drop imo. If you think that everything will go smoothly and some 'white knight' will appear to fund Cerp then just keep hoping and holding. :)

[northpole2] 19/3/2018 09:02

Why am I positive? Because this is a rather stunning announcement, one you obviously don't quite agree with but I don't think you would ever accept anything positive about CERP. Even a deal 60% cheaper than the original one. Cleaned up the deal and obtained 100% of the licence, they will have no problem funding any deeper wells in due course if they get success on the shallower ones they can fund themselves. People will be queuing up to farm in, provide funding or even make a bid for the company. The company will be in a strong negotiating position then. That is how it works in the oil business. Go for the low-hanging fruit you can fund yourselves and, upon success, other things take care of themselves. Simple and effective strategy.

[12bn] 19/3/2018 09:02

Drilling a deep well in the Cedros Peninsular was discussed in depth several years ago.The cost then was estimated at $15m-$20m but I accept that prices may have changed since then. I do not think that they have fallen so far that Cerp could afford to drill 1 deep well though. They are expecting to drill 2 SHALLOW wells at $2m-$4m a time,so how much for a deep well? Also if the 2/3 shallow wells are expected to be drilled in the first half of 2019,when will we see a deep 12000ft well,2020/2021 or never?

[kazz] 19/3/2018 09:02

Can't wait to see our production update with all this future drilling fully funded from our ongoing operations.
Regards... Kazz

[12bn] 19/3/2018 08:51

I suggest that you read Nexuss post on the rampers only thread Northpole2! Why are you so bloody positive? :)

[12bn] 19/3/2018 08:48

NEXUS719 Mar '18 - 08:42 - 3673 of 3673
0 0 0
From sellonnews Today 07:48
-------------------------------------

Read carefully

Note final sentence and think about it:

It is anticipated that between 2-3 wells, targeting the shallower prospects, may be drilled on the licences initially at costs of around US$2-4 million per well, including wells targeting multiple stacked prospects, with the first well potentially being drilled, subject to satisfactory technical analysis, in the first half of 2019. The Company will look to fund this work programme from cash available from its growing production operations in Trinidad.//////So only a couple of shallow wells are affordable from cash,I guess a deep well is years away and will need a placing or two.

[nexus7] 19/3/2018 08:42

From sellonnews Today 07:48
-------------------------------------

Read carefully

Note final sentence and think about it:

It is anticipated that between 2-3 wells, targeting the shallower prospects, may be drilled on the licences initially at costs of around US$2-4 million per well, including wells targeting multiple stacked prospects, with the first well potentially being drilled, subject to satisfactory technical analysis, in the first half of 2019. The Company will look to fund this work programme from cash available from its growing production operations in Trinidad.

.
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DYOR

[the guardian] 19/3/2018 08:28

'The royalty is payable on net production in excess of 10mmboe per annum and capped at US$1.25mpa.'

That's a lot of oil!

[edgein] 19/3/2018 08:18

Great to see CERP sign off on the BOLT deal at significantly better terms to CERP. Gonna get exciting when they're going flat out on drilling that long list of targets on this acreage. We'll kick off on Bonasse next Q, that and Goudron should keep them busy from internal cash flow.

Regards,
Ed.

[jcgswims] 19/3/2018 08:18

From bigdouble

VSA Today 08:08 Columbus Energy Resources (CERP LN)#

Columbus Energy Resources (CERP LN) has announced a significant update in relation to the South West Peninsula (SWP) and the successful completion of the restructuring of the Beach Oilfield (BOLT) transaction. This will enable CERP to begin a fully funded exploration programme including well reactivation in Q2 2018 on the Bonasse field as well as analysis of 3D seismic on the SWP. This is expected to be followed by 2-3 appraisal wells drilled in H1 2019, subject to results. Although the operational turnaround at Goudron is a critical part of the strategy and drives near term cashflow generation, it is the exploration potential at the SWP which provides the key catalysts for a major rerating of the stock; this announcement is therefore a significant milestone for CERP in realising its longer term strategy.

Previously CERP help a 25% equity interest in BOLT via a local subsidiary and was due to acquire the remaining 75% for cash payments totalling US$184k and the adoption of a US$1.1m loan held by BOLT. The new terms which are significantly more attractive, in our view, are as follows. CERP will make a cash payment of US$450k to BOLT as well as a US$80k payment to Petrotrin to complete the purchase of a 27.5% interest in the Bonasse field. CERP will give up its 25% equity stake in BOLT and BOLT will retain the US$1.1m loan. CERP acquires access to oil and gas rights on the SWP.

CERP will pay deferred fees of US$500k to BOLT upon development of any other field than Bonasse within the lease and a royalty of 3% on net production from a development of the SWP license (excluding Bonasse). The royalty is payable on net production in excess of 10mmboe per annum and capped at US$1.25mpa.

In addition to the BOLT transaction, CERP has signed a lease agreement with Singh£s (Cedros) Estates Limited to provide CERP with guaranteed access to 100% of the SWP for oil and gas operations until January 2019 and from February 2019 a lease which provides CERP the same rights for a further 27 years. From February 2019 CERP will pay Cedros US$70kpa (escalated in line with the WTI oil price) as well as a royalty of up to 12.5% capped at US$2m for years 1-2, at 10% for years 3-8 and reverting to 12.5% thereafter. Drilling bonuses of US$15k will be paid upon spud of each of the first three wells.

The above is fully funded from existing cash resources.

The attraction of the SWP for exploration is that it has been relatively underexplored in comparison to the broader region. CERP£s existing interpretation of the multiple prospects indicates 20-400mn barrels in place. Furthermore, since the targets can be drilled from onshore costs are expected to be modest at between US$2-4m per well.

Currently CERP already has a small amount of production from the shallow Icacos oilfield while the Bonasse oilfield is currently producing c10bopd of 23 degree API gravity oil. CERP expect to be able to reactivate as many as ten wells. Other historic drilling at Bonasse included 16 wells dilled to depths of up to 2,500ft. The only deep onshore well was drilled to a measured depth of 12,301ft found oil shows in the Lower Cruse and Lengua formations at a true vertical depth of 10,180ft. This well did not reach the Herrera Sandstone formation which leaves further undiscovered potential. SWP contributes 10p of our 26p target price despite its early stage which should highlight to investors the significant underlying potential.

The region is highly prospective due to its close proximity to the East Venezuelan Basin with which SWP shares its geology and on trend structures, offshore from SWP, have yielded discoveries in excess of 200mmbbls. We also note the recent announcement by BHP Billiton (BLT LN) which underpins the exploration potential in Trinidad. BLT has committed to testing three gas plays off Trinidad this year with a longer term objective of making oil discoveries.

This latest announcement CERP has confirmed the company£s ability to begin to realise its longer term ambitions in defining the exploration potential of the region via low cost onshore drilling. The announcement from BLT and the other interest from majors in the region underpins that exploration potential, in our view, although we highlight that their exploration is offshore. With the shares having eased back recently as the WTI oil price has pulled back from above US$65/bbl we believe that CERP£s current valuation provides a compelling entry point for investment exposure to Trinidad£s exploration upside.

We reiterate our Buy recommendation and 26p target price.

[the guardian] 19/3/2018 08:16

Agreed. A lot of detail for shareholders to read through and analyse today.

[tmmalik] 19/3/2018 08:14

Quarterly update I am waiting forNo doubt good RNS in medium to long termBest thing I like is honest and clear RNS from this management which is rare these days

[nexus7] 19/3/2018 08:09

Renegotiation of BOLT Transaction
RNS Number : 0607I
Columbus Energy Resources PLC
19 March 2018

Successful Renegotiation of BOLT transaction - Trinidad

[carpadium] 19/3/2018 08:03

Brilliant news, BOLT deal put to bed at long last. And how very well explained, detailed by CERP .. much appreciated by investors.

[the guardian] 19/3/2018 07:53

Should be ready now for the forecast ramp in production during Q2. All seems to be going to plan. It's great to have something to talk about.

[fsawatcher] 19/3/2018 07:46

massive news innit

long times comin and it now production and exploration company

2019 it gonna be in 20's