Columbus Energy Resources Share Discussion Threads

[thenorth] 13/9/2017 09:15

Early results from the new operational strategy are very encouraging with some wells increasing productionmore then 10-fold. Further information will be provided as the programme develops but the target ofachieving sales volumes of around 550 bopd by the end of 2017 remains a key focus of management."""It is now the Company's view that it should be in a position to internally fund the first few exploration wells on our SWP portfolio without the need for a partner to jointly fund the programme.Enough said......

[12bn] 13/9/2017 08:39

OPERATIONAL

-- Group oil sales in the period from Trinidad in 1H 2017 were 64,501 barrels net to Columbus (1H 2016: 84,470 barrels). Average production from Goudron in Q2 2017 was 327 barrels of oil per day ("bopd").////////327 bopd is the reality,550 bopd is just a ramp,jam tomorrow,again but tomorrow never comes!

[dodge city] 13/9/2017 08:29

The slide has already started.

[dodge city] 13/9/2017 08:27

Yes I saw that.

Let's see if it happens.

You better hope for more news before the end of the year though.

[jcgswims] 13/9/2017 08:19

From bigdouble

VSA

25p target Today 08:11 Columbus Energy Resources (CERP LN)#

Columbus Energy Resources (CERP LN) has announced interim results for H1 2017 which with operational changes enacted in late H1 2017 are likely to mark a turning point in the company’s development. CERP has set out the strategy to restore profitability at the core operations which will provide stable cash flow for unlocking CERP’s exploration potential.

Group oil sales of 108k barrels of oil were down 32% YoY as production in Spain ended in January 2017. While in Trinidad production was disrupted by Tropical Storm Bret alongside declines in well pressure in the Goudron field. However, higher average oil prices and favourable timing of sales more than offset the decline in production and revenue of £2.5m was up 28% YoY. The operating loss of £1.88m was in line YoY, as although CERP has made significant progress and reduced SGA by 16% YoY to £1.4m, cost of sales were higher as a result of one offs relating to Spain while a positive non cash gain in H1 2016 benefitted earnings in the prior period. We note, however, a 33% YoY reduction in operating costs at Trinidad to £700k. The net loss of £1.96m was therefore broadly in line YoY.

However, we believe that H1 2017 is likely to mark a turning point for CERP. With the new management team in place from May 2017, CERP has indicated the early success of its low cost initiatives to restore profitability and positive cash flow at its core operations. In line with previous experience the performance of the first two wells drilled as part of the Mayaro infill programme (GY-682, GY-683) resulted in strong initial production of 55bopd and 65bopd, however, this declined to 8bopd and 18bopd respectively within a few months as pressure declined. Consequently and with 160 historic wells of which around 90 are shut in, management has decided to utilise the existing wells and address the issue of declining pressure via well stimulation rather than continue with the Mayaro sand infill programme.

Yesterday, CERP announced that it had received a CEC enabling the first programme of the waterflood pilot injection to commence. This is planned to increase production from 30bopd to over 150bopd on a stable and consistent basis at a cost of just US$300k compared to US$500k for each Mayaro well. On a larger scale the potential is therefore likely to be significant and by utilising water injection and other well stimulation techniques such as smart pumping systems CERP is targeting over 550bopd by year end. Early injectivity tests have resulted in tenfold increases in production rates so far.

CERP’s cash position at the end of H1 2017 was £1.7m and on Monday CERP announced an additional US$750k in Lind funding due in Q4 2017. CERP have guided that the turnaround strategy based on well stimulation and the waterflood injection programme will be achievable using existing cash resources and are targeting positive cash flow generation by Q4 2017.

While restoring profitability at the core Goudron operations in the near term is in itself highly positive we highlight the announcement that based on the existing cash resources and the projected cash flow from Goudron, CERP intend to bring forward development of the significant exploration potential at the South West Peninsula (SWP). CERP intend to drill SWP in mid-2018 using existing cash resources. This is subject to completion of permit approval and completion of commercial negotiations which have begun following the acquisition of the BOLT license and production of 200 barrels of oil sold to Petrotrin in May 2017. SWP represents CERP’s transformational growth opportunity and the ability to develop the asset internally is a significant positive step, in our view.

We reiterate our Buy recommendation and target price of 25p/sh.

[nexus7] 13/9/2017 08:18

Interim Results for 6 months ended 30 June 2017
RNS Number : 5631Q
Columbus Energy Resources PLC
13 September 2017


Columbus Energy Resources Plc
("Columbus", "CERP" or the "Company")

Unaudited Interim Results for 6 month period ending 30 June 2017

[dodge city] 13/9/2017 08:12

Production is falling off a cliff.

Waterflood, well maybe, who knows.

The share price will start to drift back down now, especially as Koots is not one for releasing news all the time.

[carpadium] 13/9/2017 08:06

So the observation is 550bopd = cash flow positive.

LK's key target highly achievable.

[12bn] 13/9/2017 08:00

-- The Company granted Lind 17,992,308 shares, to be escrowed by Lind for at least six months from the date of issue (expected to be 23 September 2017).

-- Lind has agreed with the Company that it shall receive the repayment of its next First Tranche monthly instalment in September 2017 in shares, totalling 2,307,692 shares at a conversion price of 3p per share.

-- Lind also informed the Company that it intends on exercising its exclusive right to increase the Funding Agreement by US$750,000 (the "Second Tranche"), with the funds to be provided to the Company in Q4 2017. The Second Tranche is to be repaid by the Company over 24 months at a monthly rate of US$38,719 in cash or shares, with the Company exclusively determining the method of repayment on a monthly basis.

-- Upon providing the Second Tranche, Lind will also be entitled to 7,692,308 share options, exercisable at a price 50% greater per share than the average share price for the 20 days prior to the date of award for a period of up to 40 months./////// This looks very similar to a SEDA tap death spiral imo. More shares issued every month and the resulting sales will drive the share price lower and lower! Another Yorkville SEDA tap like deal,only with a LIND wrapper!

[sleveen] 13/9/2017 07:56

A 10 fold increase, a pity the actual production wasn't stated.

A 10 fold increase on an initial 3 barrels is merely 30bls.

[carpadium] 13/9/2017 07:50

Guessing they're doing about 400/420bod right now and assume to add 150 more from the optimisation program in the next 14 weeks. Waterflooding within this period probably at far too early a stage to notably contribute.

Do like this too...

"It is now the Company's view that it should be in a position to internally fund the first few exploration wells on our SWP portfolio without the need for a partner to jointly fund the programme."

[12bn] 13/9/2017 07:48

-- Goudron Field oil production was boosted in 1H 2017 by initial flow from the newly drilled Mayaro Infill wells GY-682 and GY-683, although production from these wells has since reduced substantially due to lack of pressure support, leading to major changes in operational strategy./////// Same old depletion rate problem I see.

[12bn] 13/9/2017 07:46

OPERATIONAL

-- Group oil sales in the period from Trinidad in 1H 2017 were 64,501 barrels net to Columbus (1H 2016: 84,470 barrels). Average production from Goudron in Q2 2017 was 327 barrels of oil per day ("bopd")./////// Oil sales DOWN by 25%,I said we would see the real picture in the results, which are different from the hype!

[12bn] 13/9/2017 07:43

FINANCIAL

-- Revenue for period of GBP2,460,000 (1H 2016 GBP1,921,000), an increase of 28%
-- Gross profit for period was a loss of GBP42,000 (1H 2016 a loss of GBP130,000)
-- Pre-tax group loss for period of GBP1,964,000 (1H 2016 loss of GBP1,925,000)
-- Cash in hand of GBP1,684,000 at 30 June 2017 (1H 2016 GBP1,170,000)
CORPORATE////// Note the Pre-tax group loss is still around £2m per 6 monthly period,this is the same loss as LGO had for years! Where is the big change? Cerp/Lgo is still a £4m a year loss maker,with an even rampier captain at the helm than NR ever was.

[offerman] 13/9/2017 07:38

22p and I can wipe out my losses and make money on cash account. MY SIPP I need a miracle. Around £4 but you never know in 10 years time ?

[carpadium] 13/9/2017 07:32

Snap jcg :-)

[molatovkid] 13/9/2017 07:31

Well after reading that update, I quite like the cut of their jib....but actions will drag this company upwards.

[carpadium] 13/9/2017 07:31

Exactly, clogs the thread.

Early results from the new operational strategy are very encouraging with some wells increasing production more then 10-fold. Further information will be provided as the programme develops but the target of achieving sales volumes of around 550 bopd by the end of 2017 remains a key focus of management.

Probably more reference to current production tomorrow at AGM. The above seems a low end of the year target imo, they should easily clear.

[jcgswims] 13/9/2017 07:30

"Early results from the new operational strategy are very encouraging with some wells increasing production
more then 10-fold. Further information will be provided as the programme develops but the target of
achieving sales volumes of around 550 bopd by the end of 2017 remains a key focus of management."

""It is now the Company's view that it should be in a position to internally fund the first few exploration wells on our SWP portfolio without the need for a partner to jointly fund the programme.""