Columbus Energy Resources Share Discussion Threads

[offerman] 05/7/2018 09:47

Very true Holly

[holly day] 05/7/2018 09:41

"This action also provides additional funds for CERP to invest in value adding opportunities."...

At least they've not used the term to minimise 'cash burn'

[nexus7] 05/7/2018 09:11

From bigdouble Today 08:39
------------------------------------

VSA

South West Pensinsula Secured

The announcement in late June 2018 by Columbus Energy Resources (CERP LN) that it signed the Sale and Purchase Agreement for Icacos represents another milestone completed by the new management team. With the operational turnaround at Goudron well underway, management’s efforts have also been focused on unlocking the value in the South West Peninsula where an estimated 1.3BBoe are in place. The announcements in relation to BOLT, and now Icacos, pave the way for exploration drilling in 2019, which will enable the value realised by CERP shareholders to be maximised, in our view.

Updated Financial Estimates

Following the publication of full year financial results we have updated our estimates. The stronger recent performance of WTI oil prices has modestly benefited our near term estimates although this has been offset by a slightly slower ramp up and we expect an average of 675bopd through FY 2018 with over 800bopd by year end. We have also rolled over the model to reflect a return to profitability for forward earnings. Our Goudron value is adjusted to 17.5p/sh. The benefits of the recent transaction are harder to quantify definitively, however, we believe that operational control will enable CERP to more rapidly advance development than with a partner to whom the development is considered non-core.

Positive Management Update

We note the recent announcement in relation to senior management remuneration whereby all executive directors and senior management will continue to receive 50% of their salaries in the form of options. We view this positively as it further aligns the interests of CERP shareholders and the management team. This is an extremely unusual demonstration by management of their confidence in the future of CERP, effectively increasing their stake in CERP on a monthly basis. We are not aware of any other AIM oil and gas management who are prepared to voluntarily take 50% of their salaries in shares. This action also provides additional funds for CERP to invest in value adding opportunities.

Recommendation and Target Price

The shares have outperformed peers since management took over although we believe that the recent pullback provides an attractive buying opportunity.

We reiterate our Buy recommendation although adjust our target price to 25p as a result of our updated valuation.

[nexus7] 04/7/2018 19:55

holy day,
Re your post # 5067 (Bonasse) Interesting Q&A

Q - Was the Bonasse oilfield included in the Full Tensor Gravity ("FTG") gradiometry survey acquired by ARKeX Limited in 2015?

A - Yes. The Bonasse Oilfield was included in the FTG survey.

So CERP´s info about Bonasse is completed.

[holly day] 04/7/2018 16:00

With that info, we can glean a lot more Rossannan. For example, if our bank balance dropped to 3.75 mill but the Bonasse work has commenced at full throttle with recent recruitment + equipment, I will be satisfied and have no cash burn concerns.

[nexus7] 04/7/2018 15:58

Ithink we should re-read CERP Questions and answers.

Eg:
In the RNS of 19th March 2018, the SWP is stated to potentially hold multiple prospects of 20-400 million barrels in place. Does mean up to 400 million in total or the prospects observed to date could hold anything from 20-400 million barrels?


-> Identified mapped prospects individually have a range of 20-400 million barrels. We have mapped multiple prospects to date in that range of potential oil in place volumes.
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There is market speculation that a placing is imminent, can you confirm?

-> There is no requirement to raise funding in the short to medium term to fund our current activities and no placing is planned or imminent. As previously announced, the Company is fully funded for our planned 2018 work programme. The 2018 work programme includes all costs of running the Company’s activities in London, Spain and Trinidad, including the costs of our capital work programmes, all G&A and the servicing of our outstanding loans to Lind Partners.

Management continue to focus on delivering our targets, increasing shareholder value and are making good progress on all fronts. We will update the market, as required, in the near future.


More

[offerman] 04/7/2018 15:46

Spot on Holly You took the words right out of my mouth especially the part about telling people how the share price has doubled under him. No doubt they wouldn't be told that it's dropped by 50% as well from its highs . We need new information new figures and everything moving forward

[the guardian] 04/7/2018 15:11

Clearer and more accurate I would say holly.

[holly day] 04/7/2018 15:09

Exactly ccr. No point going to investor conferences to find newbies telling them about the doubled figures from last year and what happened at Taqa, when one look at the chart and the projection v actual production seem to paint a different picture. Our production figures + bank balance + where the resources are allocated, along with definitive timescales would go a long way to convincing investors.

[12bn] 04/7/2018 15:06

ccr19584 Jul '18 - 12:02 - 5049 of 5061
0 1 0
Offer this seller is freckling persistent , just before news update ?/////// Oh dear,the poor novices think that the big seller is NR or DL or Lind but don't seem to want to discuss whether the 'big seller' could be their very own company,CERP! This 500k selling looks like placing shares being sold into the market for optimistic mug punters to buy and then will come a 4p or 3.5p placing RNS to the shock and horror of holders! Lambs to the slaughter.

[ccr1958] 04/7/2018 14:50

The aim must be to get new investors on board to move forward.

[holly day] 04/7/2018 14:35

It's not so much as to how many they have left to sell, more a question why are they selling now?. LIND merely cashing in their loan is OK, but others must know where the company is heading. So either case of needing the cash else where or know that nothing of note is likely to occur in the near term?...IMO, more a case of the proof of the pudding is not imminent.

The forthcoming quarterly update is the 3rd Leo will be issuing. I hope he is a lot clearer (with details) to keep the current SH's interested, let alone win new ones.

[jcgswims] 04/7/2018 14:17

As I stated previously, even if they did want to sell, DL and NR have less combined than LIND so even if it did affect the price, it would only be short term imo.

[offerman] 04/7/2018 14:00

Thanks Holly for the correctionYes DL and NR could control this quite a lot between them should they wish.I'd be glad to see the back of both of them and bring on a new II investor but at this conjuncture I don't see another II coming in until they see further progress and MC appreciation

[holly day] 04/7/2018 13:38

offerman, I presume you mean when LIND inform their designated mm, as they never had a notifiable interest. I've always said that I'd be glad to see the back of them. However, likes of NR and DL are potentially still in the equation :0(

[ccr1958] 04/7/2018 13:15

Well done offer and I agree..

[offerman] 04/7/2018 13:07

CCR Actually have a feeling and I have seen loads of times before that sometimes the M&Ms keep the share price low when they know there is a big seller in the wingsI might be wrong but I'm pretty sure that has been the cause of stocks drop before then when the seller notifies the market they are finished the price within rise with buys flooding back in That could happen here as well especially if the update is in line with expectations and nothing worse than bad news surprises. So when lind sell out completely or notify the market then hopefully rice might ensue We have a lot of big sellers to get rid off as well no doubt NR and DL Will sell out big time keeping the share price low for some time but when SWP or material acquisitions come along that might be enough to set new lower boundaries and support levels

[offerman] 04/7/2018 13:03

Thanks CCR Just bought 50k Planning another 100k That get me to million mark then that's it no more will keep some funds back for life

[ccr1958] 04/7/2018 12:48

Certainly playing out nicely for your top ups offer ,hopefully for the last time.

[offerman] 04/7/2018 12:36

I'm lining up for two more lots of this goes much lower Have a set limit order in place and the other is free standing at present

[offerman] 04/7/2018 12:04

Sure is CCR can only assume Lind Or a holder since 2p FR day's.