Columbus Energy Resources Share Discussion Threads

[nexus7] 29/8/2018 15:43

From bigmj Today 14:43
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RE: Re Petrotrin

Very busy with my day job but often pop in here and read the board, don't post so often as I wont post for the sake of it and certainly don't need to ramp.
LK will produce the goods here, the patient holders will reap the rewards in the end.
I have loaded up again today and will continue to do so as long as I believe in LK and the team.
This genuinely is a great top up opportunity, my average is a lot lot lower and I don't often "average up" but I couldn't resist.
I have a large pot of cash ready and waiting for shares at my target price

[12bn] 29/8/2018 15:40

arry that is untrue,I wasn't in Kod at 0.45p or 0.38p or anything near any of those prices,you can check my posts and see that I didn't start posting on Kod at those prices but later at lower prices,after I bought in, so I certainly wouldn't have advised anyone to buy Kod then.You seem to like to make up scenarios that are plainly untrue. I did think Cerp would have kept falling in the early 2s,(0.12p old money,2.4p new prices)in that I was wrong,I just didn't expect hiring Koots would have had such a dramatic effect on the share price here. I exited LGO at around 3p (60p in todays post 20:1 prices)and was mightily relieved to have done so.

[nexus7] 29/8/2018 15:14

PETROTRIM

$12b in debt, 1700 jobs to go

DESCRIBING Petrotrin’s refinery as a cancer that cost the company billions in loss and debts, chairman Wilfred Espinet announced its closure yesterday. That decision means 1,700 workers will lose their jobs.

Another 800 employees will be assigned to the state-owned oil giant’s redesigned exploration and production department. Espinet said the period of transition will begin on October 1...




($12b in debt -- USA dollars or Trinidad $ ???)

[jcgswims] 29/8/2018 14:45

Updated Questions to the Team

The so called transformational growth is suggested will come from a successful drilling campaign in the South West Peninsula (SWP). How will this be funded and will it involve any significant dilution of current holders?

The Company’s strategy for over a year has been to fund our initial exploration activities in the SWP from cashflow generated from our operations. At the end of 2017, Columbus became cashflow positive from operations and is currently following an active campaign to grow production and cashflows, including through the addition of the Steeldrum assets which the Company believes will provide many new areas for early production growth. It is intended that future exploration activities will be funded by this cashflow and from existing resources, with the initial drilling campaign still being planned for mid-2019.
Management are 100% aligned with shareholders and are investing in the Company on a monthly basis by taking 50% of their remuneration in Company shares. They have no plans to introduce measures which result in significant dilution for shareholders.
On exploration success the Company would seek to progress innovative additional funding arrangements in an accretive manner to appraise and then develop the SWP and has had discussions with numerous parties interested in assisting the Company unlock the huge potential of the SWP. There are plenty of financing options available to the Company that would not result in significant dilution should the Company see success in its exploration activities.


Remember that if funds become available from Predator that this also involves a large share issue on top of the shares that will be issued on completion of the Steeldrum acquisition. There is no such thing as a free lunch!

There is no guarantee that Predator will exercise their right to acquire the Innis-Trinity field. However, in the event the Innis-Trinity field is sold to a third party (including Predator) for no less than US$4,200,000, the Company is obligated to issue 16,920,083 additional shares in Columbus to the Steeldrum owners, this representing approximately 2.3% of the 743 million shares which will be in issue following the completion of the Steeldrum acquisition. Assuming a share price of 4.0p at that time, those 16.92 million shares would be valued at approximately £675k (or US$860k), which is significantly lower than the US£4.2 million Columbus would be receiving from the third party. If these funds were received, the Company would look to use these funds in other value-adding opportunities, including exploration activities in the SWP and on our other assets. Columbus’ management agree there is no such thing as a free lunch but believe that this lunch would be very palatable for the Company’s shareholders.


Will Steeldrum make a tangible difference to the bottom line? BOPD may increase marginally but so will costs/overheads?

We believe Steeldrum has the potential to make a tangible difference to the Company’s bottom line. The acquisition increases and consolidates the Company’s acreage position in SWP, giving Columbus six fields to play with and will generate further cash for the business. It also delivers optionality and flexibility to the Company on where it invests its cashflow to deliver the greatest returns for shareholders.
The Columbus management team recently spent some time in Trinidad reviewing the Steeldrum fields and have identified numerous opportunities to establish “quick-winR21; production growth through a programme of well optimisations, well reactivations and also some infill drilling activities, all to be funded from currently available resources. This would be in addition to our already announced activities at Goudron, Bonasse and Icacos. Further information on these planned activities will be announced in the near future.
Both companies are already working together on plans to obtain real production growth in the near-term and an integration process, bringing the two companies together, is currently being progressed involving management and staff from both companies. Some of Columbus’ operations staff are already working with Steeldrum staff on early optimisation targets on their producing fields through a short-term contractual service arrangement. The Company is seeking to complete the Steeldrum acquisition within the next few weeks and has made good progress to date on the outstanding matters required for completion to come into effect.
As with any acquisition, there will be an increase to overheads in the short term but there are a number of integration and natural cost synergies. The integration process continues at a pace and management are hopeful it will be completed in the not too distant future.


Is the Steeldrum acquisition a key component of the company growth strategy or more for show to investors that something is happening?

This is the third acquisition of the year following the Icacos and BOLT transactions and we continue to make good progress. The Steeldrum acquisition is another piece of the puzzle with more to come. As stated in the Annual Report and detailed further below, the company has begun a screening exercise for M&A opportunities in Trinidad and Tobago and elsewhere in South America.


What are the realistic chances of success in the SWP?

One of the reasons that Leo joined Columbus was because he was excited by the opportunity for exploration in the South West Peninsula. He believes that the assets we have there are the type of assets found in a major oil company’s portfolio given the potential resource size.
The assets in the SWP are near to, and geologically a part of, the prolific East Venezuelan Basin, offering significant exploration, development and production optionality and the assets have the potential to deliver transformational growth.
From an exploration perspective it ticks many of the boxes given its proximity to a proven oil play and is located in a well-established oil province with easy access to export for any successful development project. It offers, from an onshore location, large scale, exploration potential that would typically be seen offshore where the drilling costs would normally be 3-5 times that of Columbus’ onshore exploration wells. In addition, the SWP is relatively shallow, keeping exploration and development well costs down.
All these reasons make us believe that this is a relatively low risk play in exploration terms, improving the chance of success on what would certainly be a material play in worldwide oil terms.


Is Spain a millstone and does the company genuinely hope to gain a new licence or is it looking for an exit strategy at minimum cost to the company?

Trinidad is our core area and focus but Spain still provides potential upside. We hope to apply for the new license for Spain as soon as possible, either on our own or with a partner, and are awaiting the instigation of the tender process by the Spanish authorities. In the meantime, we continue to keep our costs in Spain as low as possible. In the event we are unsuccessful in the tender, we will continue to execute our growth strategy in South America.


Will CERP ever move into South America? If so, how?

Columbus is actively looking to expand into South America as it has the same operating environment in Trinidad with an established oil supply chain. The reservoirs are part of the East Venezuelan Basin and we understand the geology and exploration potential. The Company is looking at opportunities in Trinidad, Colombia, Guyana, Suriname, Venezuela and elsewhere and have identified a number of opportunities, both at a corporate and asset level, which meet our strict investment criteria of onshore: operatorship, easy export routes, mature oil provinces in the Caribbean or South America: and close to infrastructure. Any acquisitions will be financed through innovative funding strategies and the management team has much experience in securing funds in such a manner.

[arrynillson] 29/8/2018 14:16

12bn - you tell us you've made money on KOD I can only go by your published posts - you told people here to sell CERP in the early twos to buy KOD @ around 0.45p - anyone doing that would have been virtually ruined - you can't have it both ways - if you didn't believe your advice to others and were doing the opposite to make money for yourself readers here would take a pretty dim view of that - even if it impresses your mates in the boiler room!

[12bn] 29/8/2018 14:01

arry,I have made a lot of money out of Kod by buying it at 0.13p/0.14p/0.15p etc,even now the share price is still 0.25p. You on the other hand have lost money here as the share price dropped and dropped from 7.25p.

[mam fach] 29/8/2018 13:40

Looks like drop in price been looked upon as buying opportunity.

[arrynillson] 29/8/2018 13:32

12bn - I don't fear cash raising if it's justified by ROCE - what I don't like is a dilutive Placing which appeared to follow a campaign of share price downward manipulation a good example of which was the dog you were promoting on here 12bn - KOD!

[nexus7] 29/8/2018 11:44

From mikemike Today 11:21
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RE: Goudron oil sale price

May even encourage the T & T gov to privatise the whole shooting match and take royalties for no effort.

Permit private industry and rake in the royalties and taxes.

Big step that may prove inevitable as the gov does not want the alternative as Mr khan has outlined.

CERP remains high on my watch list...for now

[12bn] 29/8/2018 11:00

arry,you needn't worry as I am still negative on this serial loss maker that will keep raising cash for many years imo.

[12bn] 29/8/2018 10:58

Columbus currently receives an oil price, as calculated by Petrotrin on a monthly basis, after taking account of various factors, including refining and other costs, ////// While I accept the argument on Cerp getting more due to the API of its oil, 'refining and other costs' are likely to increase imo. The market seems to have taken the RNS positively though.

[arrynillson] 29/8/2018 10:57

Northpole2 - heeeeeeeeeeeeeeeeeeeeeeeeeeeelp 12bn has unfiltered me after all this time - I'm worried he might eventually be supportive of the new management - that would have to be a serious time for any holder to reconsider their position LOL!

[arrynillson] 29/8/2018 10:42

12bn - rns out from CERP spinning the Petrotrin deal more positively than I did.I think they may have peeked at my posts 12bn because they referenced the BOD taking 50% salary in cash and that arrangement to continue in the foreseeable future 12bn!

[the guardian] 29/8/2018 09:46

nash, if you read the TXP RNS, it says that Petrotrin will be buying the oil as per the existing contracts. No price benefit to producers as yet but that could evolve during the shake up.

[arrynillson] 29/8/2018 09:37

12bn - the shares issued to contractors were largely to Tony the CERP M&A guru and legal adviser but were in total less than £50,000 - small potatoes - half salaries of some of BOD also paid in shares at around 5p so that's ' accretive funding ' rather than dilution 12bn!

Also note shedloads of shares going to Steeldrum shortly rather than cash - seems like plenty of people have confidence in CERP even if you don't!

[12bn] 29/8/2018 09:21

RNS Number : 7274X

Columbus Energy Resources PLC

14 August 2018

14 August 2018

COLUMBUS ENERGY RESOURCES PLC

("Columbus", "CERP" or the "Company")

Issue of Equity

Total Voting Rights

Background

In the past year, the Company has entered into a number of agreements with contractors who provide services to the Company so that part of the relevant contractor's fee is paid in Company shares (the "Contractor Shares"). This has been done in accordance with the Company's ongoing cash management strategy and, more specifically, to align the interests of the Company with the contractors who are helping it achieve its objectives.

The relevant services up to 30 June 2018 have now been provided and therefore the Company has issued 1,079,986 new ordinary shares to those contractors (the "New Contractor Shares"), representing 0.166% of the 649,206,426 ordinary shares in issue prior to the issuance of the New Contractor Shares. The planned issuance of the New Contractor Shares was previously announced to the market in the Q1 Business, Operational and Financial Update RNS dated 9 April 2018.

The New Contractor Shares will rank pari passu in all respects with the Company's existing ordinary shares. Application has been made for the New Contractor Shares to be admitted to trading on AIM, ("Admission"), and it is expected that Admission will become effective and that dealings will commence on or around 20 August 2018.

Total Voting Rights

For the purposes of the Disclosure and Transparency Rules of the Financial Conduct Authority, the Board of Columbus hereby notifies the market of the following:

As at the date of this announcement, and after the issuance of the New Contractor Shares, the Company's issued share capital consists of 650,286,412 ordinary shares with a nominal value of 0.05p each, with voting rights ("Ordinary Shares"). The Company does not hold any Ordinary Shares in Treasury.

Therefore, the total number of Ordinary Shares in the Company with voting rights is 650,286,412. This figure may be used by Shareholders in the Company as denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

[12bn] 29/8/2018 09:19

12bn28 Aug '18 - 08:32 - 1215 of 1223 Edit
0 0 0
The share price here is sliding away,as Cerp lose money I am expecting a placing/fund raising/dilution here soon. When Cerp was over 6p (120p in todays terms) it slide to 0.12p (2.4p in todays terms after the 20:1 consolidation) I wouldn't be surprised if this was heading back to that territory.////// This was my post arry,note that the Lind deal falls under placing/fund raising/dilution. Cerp are a loss maker and still need regular cash injections imo. I am glad that you now realise that if repayments on a new Lind loan are requested to be in shares by Cerp then they will be at market prices. Many others didn't realise this but we both agree on it now. The Lind deal doesn't rule out other types of fund raising/dilution either,it just makes them less likely. Note that Cerp issued shares to cover debts recently.

[arrynillson] 29/8/2018 09:09

12bn - no confusion from me on Lind - NEW facility 12bn $3.25 million so why do they need a Placing 12bn?

CERP can repay loan by cash every month - it is a term of the loan that repayment can be in shares at prevailing market price not 8.1p. 12bn similar terms on last LInd loan but they chose to repay pretty much all in cash despite you telling readers here that wouldn't be the case ( because they couldn't increase production - which you also got wrong!).

If CERP repay in cash Lind will only be tempted to buy shares in CERP at 8.1p if the share price exceeds that price - they must see the business rather differently than you 12bn if they think that strike price is potentially achievable - they probably read the rns, watch the media AND talk directly to the company - they got it right last time 12bn!

[nash81] 29/8/2018 09:07

if i have cash, i will be topping up now. we are down on low volume by some panic sellers.

other producers barely down.

in fact, this could be very good news as we can now allow petrotrin to sell for us for current oil price which is much higher than we are getting paid now

[nash81] 29/8/2018 09:05

copied from LSE... looks like petrotrin should have no impact to us.

===
oil will be exported.

so, per the press release, hxxp://www.cnc3.co.tt/press-release/petrotrin-confirms-it-will-end-oil-refining-operations

its confirmed that "All of the Company’s oil will be exported" - ie consistent with RNS in TXP confirming that all oil producers by operators, will be exported - this implies Petrotrin will export the oil on our behalf.

so, i dont see any issue/problem impacting CERP operating and all other Trin producers doesnt have share price spiralling down.

some in CERP is getting panic imho

[12bn] 29/8/2018 08:56

Yes I know Petrotrin have been losing money for years but that doesn't change the fact that oil transport costs will increase when the oil is sent abroad for refining. It seems likely to me that these additional costs will have to be paid for by the oil producers like Cerp. I agree that the Trinidad govt wants to increase oil production but it needs revenue.

[offerman] 29/8/2018 08:48

Just sold my ukog Small profit

[arrynillson] 29/8/2018 08:47

12bn - if you had read the detail you'd know the refinery part of the business was losing money so they have finally bitten the bullet on that - Petrotrin have been loss making for many years why wouldn't they have imposed worse terms on IPSC before if it was that simple to generate higher margins - truth is that current margins have, in some cases, deterred new investment, hence the improvement NR was able to negotiate sub $50 WTI!

[12bn] 29/8/2018 08:38

arrynillson unfiltered for a while,just in case he wants to make comments on this Petrotrin disaster. Arry,I see from reading your past posts,now that I have unfiltered you,that you are still confused about the Lind facility. The repayments on that facility are only repayable in shares at 8.1p if Lind themselves request repayment in shares. If Cerp take up the loan and decide to repay in shares then the shares are issued at market prices creating a Seda tap death spiral. Of course Cerp could elect to repay the loan with cash,no-one is saying that isn't possible. I hope that this clears up the confusion you seem to have over the new Lind deal.

[offerman] 29/8/2018 08:37

I'm sitting on massive losses TG. Around £ 260000 now