Columbus Energy Resources Share Discussion Threads

[arrynillson] 09/11/2018 15:41

SmoggyG/12bn - No really thick would be taking your advice to sell at 2p and buy KODshyte at double current share price - transformational riches to rags story - well done 12bn!

[toploadermike] 09/11/2018 15:20

Wow great, thanks John, also great to see more good news flo starting, would be nice at the beginning of the week too. Tend to see news on a Friday gets forgotten by Monday.... ;)

[offerman] 09/11/2018 15:16

Hi Ed Will read posts soon Just doing school run in v windy conditions

[offerman] 09/11/2018 15:15

Hi mike Prestigious investor backer in CERP. Also a strongman champ too world records for his class.

[toploadermike] 09/11/2018 15:13

Was going to ask the same, I'm sure Ed or John know...

[dafrog] 09/11/2018 15:10

Who is Michael Joseph?

[smoggyg] 09/11/2018 14:33

No topmoron, it is a rollover,a buy and a sell with the MMs taking a cut and the broker taking his charge. As jcqswims explains it gives PIs a little longer to hold the shares before they have to settle the deal. Put your money in the Post Office! PMSL :) It really appears that you have to be really thick to buy this share! :)

[smoggyg] 09/11/2018 14:30

PMSL at this discussion,what an uninformed investor toploadermike is,last week he was wondering how MMs determined the prices LOL. Blind leading the blind springs to mind but jcqswims is correct.//////toploadermike9 Nov '18 - 12:15 - 6255 of 6259
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Interesting that 2 trades today (sales) 12 & 13 equal the same amount to the pence, £5224.17 each although at different bid prices, both one after another. All very strange don't you think?

ATB
TL
jcgswims9 Nov '18 - 12:19 - 6256 of 6259
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Not strange, probably just a rollover
toploadermike9 Nov '18 - 12:23 - 6257 of 6259
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Don't know that one, what's that JC?
jcgswims9 Nov '18 - 12:29 - 6258 of 6259
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Never done one myself so I'm sure the more learned will expand, but in short it's a way of keeping shares beyond their contract expiry date for a fee, in this case approx £30 (the difference in shares)
toploadermike9 Nov '18 - 12:43 - 6259 of 6259
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Ah so it's a buy and not a sale?

[toploadermike] 09/11/2018 12:43

Ah so it's a buy and not a sale?

[jcgswims] 09/11/2018 12:29

Never done one myself so I'm sure the more learned will expand, but in short it's a way of keeping shares beyond their contract expiry date for a fee, in this case approx £30 (the difference in shares)

[toploadermike] 09/11/2018 12:23

Don't know that one, what's that JC?

[jcgswims] 09/11/2018 12:19

Not strange, probably just a rollover

[arrynillson] 09/11/2018 11:40

SmoggyG/12bn - people on the other thread don't seem to be clamouring for you to be reinstated and journalistically you've been in serious decline since Koot's arrival- have you thought about a job with CNN as the new White House correspondent - with your fake news history you'd be a good fit!

[edgein] 09/11/2018 11:10

O/T,

RE Serica, I've held those numerous times. They got a great deal on Erskine initially. It was giving strong production (from an old field). SQZ agreed to pay around $20m in cash for the acquisition, they had that on their balance sheet. BP cover decomm costs etc. But from the effective date to the completion date which took around a year Erskine had paid for itself from its free cash. The next deal with the group of fields was similar in structure, its a pretty rare event, SQZ are unique in AIM and BP did them several very large favours. TCW the head of SQZ is someone I've had regular contract with over many years, so he deserves to see his company flourish the way it has, he's one of the best CEO's on AIM. LK is well up there too and has the potential to do the spectacular too, not just through drilling.

Regards,
Ed.

[edgein] 09/11/2018 11:04

Good morning Offer,

That's like how long is a piece of string! :) Well there are three large fields onshore Suriname, those have unknown 2P currently in the public domain, they were doing many thousands of bopd in the past. What they're doing now is only known to the state oil co and possibly CERP too. It could be a deal on all three fields, it may only be future development of one. It may only be a share in enhanced production rather than current reserves and production i.e. direct working interest. If its just on enhanced production upfront finance is likely to be small. If its direct working interest its a case of buying proven developed reserves. Its possible to pick up reserves in SA for as little as $1-3/bbl so it depends on what classification those reserves are (contingent, proven undeveloped, proven developed producing) and exactly what the state oil company wants for those. But $30-40m of agreed development spend could get a material share of 2P.

CERP are almost debt free at present so they also do have the LIND facility, convertible at about twice the current share price, although that's just some backup funding. Their reserves at Goudron/TI/SE etc are pretty much not leveraged at present. So they've about 17mmbbls. That could raise a decent amount of debt based funding (RBL). But I reckon the funders will want some direct action too, not just interest. I expect that the material and transformative deals will be at least part equity. Our share price may be substantially higher by then, I get the feeling that green deal is a year or two down the line. We may have one or two SWP discoveries by then (fingers crossed), we may then be looking at 100-200m shares at 20-25p etc.

If we're lucky Maroon if we're lucky may be an upfront payment of $5-10m with an agreed development spend of significantly more over a phased period as production increases through redevelopment. But again pure guesswork at the moment until we see what we get for our money. So far so good. SD was a great price for the reserves so I've high hopes for LK and team to do similar in SA. until we know the details we could come up with 100 different scenarios and still be out from what happens. But being debt free and a producer with reasonable reserves LK has options. If we get beyond 1,000bopd and the EOR works on TI, + get lucky in SWP those options increase quite a bit.

Regards,
Ed.

[offerman] 09/11/2018 10:49

Morning Ed,Thanks for the reply. What value would you attributed to the possible Maroon deal? Are we talking 30 -40 million? Typically deals tend to take 4-5 months as guidance given to me by T.H. Obviously these can change depending on the complexities of the arrangements T&Cs. What I would expect the Maroon deal to be announced year end or first quarter next year. That's really interesting what you said about Stuart and his experience in Madagascar re: steamflood. I will try and research a bit more about this as I don't know about steamflood as you do. A very good point as well Ed about the green deal in Suriname acquiring potential fields in the way that Serica did too. With their expertise its apparent that there are a multitude of areas where we can add extensive value. Ed I'd like to ask you question.Dilution loan by way of sure issuance won't be enough to raise all the funds needed. Do you think they can use Goudron in part offset? How do you envisage The large amounts of capital needed for these types of deals. Debt for equity? Current asset involvement? Golden did say he has done a lot of these types of deals before raising substantial amounts. I just wondered if the above two would be justifiable or which are the ways could they go about this? I noticed SQZ only had in the 200s million shares in circa . So to get from 3p a shower to £1.30 I'm wondering about they had consolidation or something along the way to get that point . Or did they have a lucky strike along the way too. To get where they are now with so few shares in circa unless they did share buyback scheme? Interesting to get from 3p 4-5 years ago to current levels and what seems no dilution?

[toploadermike] 09/11/2018 10:41

Did you know that %35 of all Oil production are from regions counted as others, i.e. not Arab states, or places like the US so that's quite a big % of alternative supply. Lets hope LK and the team get that % up :)

[arrynillson] 09/11/2018 10:21

SmoogyG/12bn - deep drilling is on the agenda but clearly LK wants to avoid an expensive drill that could jeopardise the long term future of CERP if it was unsuccessful hence the plan for shallower drills which are more affordable but that can be extended in due course - if you don't like the plan don't buy the shares - no one is obliging you to interest yourself in CERP!

In the meantime LK has increased production significantly and we have multiple opportunities to grow production massively by the recent acquisition as well as the Predator CO2 EOR scheme and the SWP. Have you bothered to study the Predator scheme yet 12bn?

If people on here didn't sell up at 2p to buy that KOD Shyte and lose a fortune why would they take your advice now 12bn?

[smoggyg] 09/11/2018 09:44

Here is my name and address Eggy. Mr Don Duck,29 Fairy Dell,Hobbitsville,Middle-Earth UR1TIT. I hope that helps. LOL

[eggchaser] 09/11/2018 09:38

Knock knock

[edgein] 09/11/2018 09:33

Offer,

Yes they could do it on a large find in the SWP, but also they could do it something similar to SQZ through acquisition rather than or combined with discovery. Suriname deal could be interetsing, as LK described Maroon deal is with a state owned oil co. There's a number of very very large old oil fields in Suriname, LK and his team could use their EOR experience, especially SA with his Madagascar heavy oil experiece (SAGD/Steamflood). Then we have the longer-term Green deal, the transformational deal, also South America likely Colombia and if its $100m deal like LK suggests probably a group of fields like the SQZ deal. Of the remaining companies on AIM likely to be the next SQZ, CERP would be one of the front runners.

Regards,
Ed.

[smoggyg] 09/11/2018 09:29

arry,Cerp does have a chance to make big profits but only if it strikes oil big time by drilling deep,imo. A 12000ft drill in the SWP could make Cerp but it will be risky and expensive and will not happen before 2020 imo. In the mean time all LK will manage is to increase income small time and the increases are unlikely to turn Cerp profitable imo but I could be wrong,no one is right all the time. The last results showed the group losses as £2.465m for 6 months,nearly £5m per year and it will take a lot of extra oil to cover that and turn Cerp profitable. In the mean time £30m market cap is a lot for a loss maker,imo.

[offerman] 09/11/2018 09:28

Yes is great news. This share does appear to have goneoff the traders radar as per Leo's plan. Schroders keep buying , so having an institutional investor that can see what all the PI's and bigs can see and many more shares going to sticky hands bodes very well indeed. Another SQZ? 3p to 70p 3 years... with very successful SWP campaign.....? Who knows but it certainly isn't an impossibility