Columbus Energy Resources Share Discussion Threads

[eggchaser] 21/12/2018 08:04

You need to get your facts right Smoggy... but then with losses at HAWK KIBO and SLE it's not difficult to see why you keep getting things wrong.How can anyone take you seriously!Still that knock at your office door is only a matter of time...

[smoggyg] 21/12/2018 07:35

My original post which upset Northpole2.//////SmoggyG20 Dec '18 - 13:47 - 314 of 323 Edit
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o Q1 peak production of 627 BOPD with 427-542 bopd delivered month on month

o Q2 peak production of 648 bopd with a steady 530-575 bopd delivered month on month

-- GBP1,030,000 incurred on capex and workover activities during 1H 2018
-- Netback per barrel of US$13.13 achieved in 1H 2018 (1H 2017: US$5.69 per barrel) /////// The net back is what Cerp actually receives for its oil not the WTI price. Jcqswims is being deliberately deceptive on his thread imo.(Taken from the last results RNS. I accept that Petrotrin is 'no more' but the Trinidad govt will still take its cut and Cerp will not get anywhere near the WTI price).

[smoggyg] 21/12/2018 07:29

Northpole2,my original point was to point out that jcqswims post talked about gross figures which DISTORTED the picture for PIs imo. I was pointing out what Cerp actually ends up with, which is the important point. Talking about $60,$50,$40 a barrel for oil is pointless when Cerp actually only gets $13. It is the net amount which has real relevance for Cerp not the gross amounts before deductions. I know you would like to ignore this point but it is relevant. ps eggchaser and arry,if your posts are directed at me they are pointless as I have you both filtered.

[arrynillson] 20/12/2018 23:54

SmoggyG also has a poor memory for history particularly when he is in dinosaur mode - he asked me the other day to prove he had said CERP wouldn't increase production - here it is from 18/05/2017 ' LGO wells have decreased production consistently over the years despite work-overs, reperforations etc. Now we are meant to believe that magic man Koots can turn this all around with a bit of new tech and cost cutting. Is anyone here gullible enough to believe that? '. I rest my case!

[northpole2] 20/12/2018 22:02

Totally agree Eggchaser. I totally despair at our Smoggy/12bn, who clearly can't understand what I wrote and simple oil company economics. He has an agenda to continually demonstrate that he has absolutely no comprehension of how the oil industry and growing companies work.

Firms who are in growth mode don't make profits from Day 1. Fact. They grow through capital growth over time ... not through "profits"... about 90% of the AIM market make losses for the first few years but investors accept that as a simple reality on the basis they will grow and produce capital value over time. Indeed, most private companies lose money until they get market traction over time. Not our 12bn. If you lose money from Day 1, you are a total loser!

Netbacks? 12bn can't you work that out? That is the amount left over after all operational costs, taxes and local G&A, etc. Left over! It has NOTHING to do with what CERP receives from Petrotrin.

I notice 12bn has got over the Lind bandwagon, at least for now... which was a total red herring. Story? Lind repaid by CERP in cash every time, apart from one occasion over past two years. Fact! Oh, he got that wrong too.

I will stop here. I rest my case m'lud.

Smoggy ... time to go to bed with a thick blanket and don't emerge until the new year. 2020.

[eggchaser] 20/12/2018 21:09

We have come to a conclusion that someone can't understand plain English or at least read and understand the latest update to the FAQ section of the CERP website.12bn aka Smoggy. Never in the history of mankind has a man been in such dire need of a blow job - we trust in doing so may restore some much needed brain cells to join the one you already have.

[smoggyg] 20/12/2018 17:42

RNS Number : 0897C

Columbus Energy Resources PLC

27 September 2018

27 September 2018

Columbus Energy Resources Plc

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

Unaudited Interim Results for 6 month period ending 30 June 2018

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, is pleased to announce its unaudited Interim Results for the 6 month period ending 30 June 2018, extracts of which are set out below and a full copy of which will shortly be made available from the Company's website www.columbus-erp.com.

The Company also confirms that the quarterly Operations and Business Update for Q3 2018 will be reported via RNS on 10 October 2018, followed by a presentation by Columbus' Executive Chairman, Leo Koot, to shareholders and other stakeholders that evening, commencing at 7.00pm at an address in central London to be confirmed soon.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

Enquiries:


Columbus Energy Resources Plc [phone]
Leo Koot / Gordon Stein

Beaumont Cornish Limited [phone]
Nomad
Roland Cornish / Rosalind Hill
Abrahams

VSA Capital [phone]
Broker
Andrew Monk / Andrew Raca

Camarco [phone]
Public and Investor Relations
Georgia Edmonds / James Crothers
/ Billy Clegg


Period Highlights

For the 6 month Period ending 30 June 2018

FINANCIAL

-- Revenue for period of GBP3,615,000 (1H 2017 GBP2,460,000), an increase of 47%
-- Gross profit for period was a profit of GBP429,000 (1H 2017 a loss of GBP42,000)
-- Pre-tax group loss for period of GBP2,465,000 (1H 2017 loss of GBP1,964,000), the increase being mainly due to exceptional costs in Spain

-- Cash in hand of GBP1,800,000 at 30 June 2018 (1H 2017 GBP1,684,000)
-- Averaged realised sales price from Goudron operations in 1H 2018: US$61.17 per barrel, peaking at US$62.35 per barrel in June 2018 (1H 2017: US$46.28 per barrel, peaking at US$49.22 per barrel in January 2017)

-- Special Petroleum Tax ("SPT") has been payable at the end of each quarter throughout the period as the sales price received has exceeded US$50.00 per barrel with payments of GBP242,000 in 1H 2018 being incurred (1H 2017: GBPNil)

-- Costs of meeting ongoing obligations in Spain, including staff redundancy and associated tax costs, of GBP637,000 (1H 2017: GBP320,000). Burn rate in Spain now down to around EUR15,000 per month

-- Lind loan balance reduced to GBP402,000 at 30 June 2018 (GBP995,000 at 30 June 2017)
OPERATIONAL

-- Group oil sales in the period from Trinidad in 1H 2018 were 88,380 barrels net to Columbus (1H 2017: 64,501 barrels), a 37% increase

-- Average production from Trinidad in 1H 2018 was 485 barrels of oil per day ("bopd") with production peaking at 648 bopd in 1H 2018, (1H 2017: 354 bopd)

-- Solid production base, despite a number of technical challenges, delivering steady cashflow and base for future growth:

o Q1 peak production of 627 BOPD with 427-542 bopd delivered month on month

o Q2 peak production of 648 bopd with a steady 530-575 bopd delivered month on month

-- GBP1,030,000 incurred on capex and workover activities during 1H 2018
-- Netback per barrel of US$13.13 achieved in 1H 2018 (1H 2017: US$5.69 per barrel)
--

[smoggyg] 20/12/2018 17:40

Northpole2,do you understand the difference between the GROSS amount and the NET BACK. I was not talking about the gross amount but the NET,what Cerp actually received for its oil after deductions. It is in the results,which is where I got the info from. It is obviously very confusing for you but put simply it doesn't matter if the GROSS amount is $60 if Cerp only actually end up with $13.13!

[northpole2] 20/12/2018 17:08

No Smoggy, you just don't get it do you. The netback is NOT what CERP receive. CERP receives a gross amount per barrel from Petrotrin/Heritage (the new Petrotrin) and then there are some deductions made by Petrotrin for contractual royalties and some other contractual charges. CERP then receives a net amount from Petrotrin based on that. And then CERP deducts local operating costs for the fields, well maintenance costs, workovers, local G&A and then SPT to get the netback amount per barrel - that is the amount CERP were referring to. It is NOT the amount received from Petrotrin which is clearly a lot higher to take account of the other charges CERP then deducts to get the netback number. That calculation is standard across the oil industry which is where I have significant experience. In today's Q&A, the gross amount for sales from Petrotrin for November was $58 per barrel and then the above deductions will be applied. Try understanding what you are saying before putting such things in writing. As production grows, the netback per barrel amount should increase too as much of CERP's operating costs are fixed and don't increase when production increases. Simple oil economics 101.

[nexus7] 20/12/2018 16:11

Shale Growth Could Slow On Oil Price Meltdown

Can the U.S. shale boom continue if WTI stays mired below $50 per barrel?

Much has been made about the dramatic cost reductions that shale drillers have implemented over the past few years, with impressive breakeven prices that should ensure the drilling frenzy continues no matter where oil prices go. On earnings calls with investors and analysts, shale executives repeatedly trumpeted extremely low breakeven prices.

However, those figures are at times cherry-picked or otherwise misleading. They fail to include the cost of land acquisition and other costs, or they simply reflect cost structures in only the very best acreage.

The sudden meltdown in prices – oil fell nearly 8 percent on Tuesday – could put renewed scrutiny on the point at which many shale wells breakeven...

[arrynillson] 20/12/2018 14:59

SmoggyG - jcgswims is quoting from the FAQ on CERP website so you'd need to be more than a bit challenged to attribute deliberate deception to him!

As you are very challenged I'm going to explain it - under Goudron IPSC we used to get less than WTI by around 5/6% but now they are paying a premium so the overall effect is CERP get circa 10% more under Heritage than Petrotrin paid.

The price paid is used to calculate the Royalties and the expenses under the IPSC to arrive at the netbacks - those interested can refer to CPR on CERP website - note the lower rate in the $40-$50 area.

The terms also record that higher charges apply to first tranche so more volume reduces the impact of the initial tranche charges on the overall netbacks figure.

Hope it's clear now 12bn - I'm surprised I have to explain this to you regularly- you should have understood this a long time ago if you're going to advise people on CERP!

[smoggyg] 20/12/2018 13:47

o Q1 peak production of 627 BOPD with 427-542 bopd delivered month on month

o Q2 peak production of 648 bopd with a steady 530-575 bopd delivered month on month

-- GBP1,030,000 incurred on capex and workover activities during 1H 2018
-- Netback per barrel of US$13.13 achieved in 1H 2018 (1H 2017: US$5.69 per barrel) /////// The net back is what Cerp actually receives for its oil not the WTI price. Jcqswims is being deliberately deceptive on his thread imo.(Taken from the last results RNS. I accept that Petrotrin is 'no more' but the Trinidad govt will still take its cut and Cerp will not get anywhere near the WTI price).

[toploadermike] 20/12/2018 10:29

Nice one Jcg & Egg,

I topped up again today and although I let my red lines slip still happy to be holding.

ATB
TL

[arrynillson] 20/12/2018 10:14

SmoggyG - you never explain how your followers sell in the 2s and sell again at 7.25p after you've realised you got it wrong!

[eggchaser] 20/12/2018 09:24

This is a rather important factor to the naysayers who bleat repeatedly the cash burn factor.An important factor to note is that the SPT calculation also takes account of allowable capex spent by the producer during that period, with deductions being applied in the SPT calculations accordingly (eg. 20% of capex spent during that quarter can be offset against the SPT amount due and any brought forward offsets from previous quarters can also be applied). This can sometimes mean that no SPT is payable by a company for a quarter if the capex spend offsets are greater than the SPT payments due for that period on sales. This can sometimes lead to a carry forward to the next quarter of "offsets" during periods of high capex payments by a company (eg. during drilling, facility enhancement or water injection campaigns). During periods of high capex spend, SPT may not be payable in cash from one quarter to another.

[jcgswims] 20/12/2018 08:24

Updated FAQ

19/12/2018
How is the recent drop in the WTI oil price affecting Columbus?

Like all oil companies, Columbus is affected by movements in the international oil price but not necessarily in the same manner as other companies. Columbus sells most of our crude production to Heritage Petroleum Company Ltd (the new state company in Trinidad which is the successor to Petrotrin) and receives a sales price for each month based on various factors as calculated by Heritage. This has historically included factors affecting costs and throughputs of the Pointe-a-Pierre refinery in Trinidad, where our crude ultimately ended up, but we understand that this situation has now changed with the closure of the refinery which commenced recently. Historically, Columbus has received a monthly sales price which was at a discount in comparison to the international WTI price for that comparative month, with the discount averaging between 6-7% over the past year. However, for the November 2018 crude sales, Heritage has confirmed that Columbus will receive an oil price of US$58.397 which signifies a premium of around 3% compared to WTI for that month. We hope that this trend continues in future given that the ultimate destination for our crude is no longer the refinery in Trinidad.

In addition, as previously reported, Columbus is exposed to Special Petroleum Tax (SPT) in Trinidad for oil sales averaging above US$50 per barrel for each quarter. Please look at the answer in another Q&A below which notes that an oil price of around US$61 per barrel would be required to obtain the same level of profits from sales at US$49.95 per barrel if capex is zero for that period.

The recent reduction in the international oil price has therefore had minimal impact on Columbus’ ongoing cashflow from sales as a result of both of the above factors (ie. changes to our sales destination and the effect of SPT)

[smoggyg] 20/12/2018 08:10

NEWS NEWS NEWS, massive selling as arry sells his entire 7.25p holding for 2.9p.//////08:01:48 2.9000 129 O 2.9000 3.2000 Sell 0 1,139
08:01:44 2.9000 528 O 2.9000 3.2000 Sell 0 1,010
08:01:41 2.9000 45 O 2.9000 3.2000 Sell 0 482
08:01:39 2.9000 437 O 2.9000 3.2000 Sell 0 437

[toploadermike] 19/12/2018 12:14

Good to see jcgs, thanks, brought some sunlight to a very dark time in the market.

ATB
TLM

[arrynillson] 19/12/2018 11:00

SmoggyG - I can see why you want to deflect people away from your investment advice - sell CERP in the 2s to buy KODswallop - lose massively - then lose more by buying MRS - i think Apache is characterising you 12bn and I can understand why he is annoyed!

[nexus7] 19/12/2018 10:51

jcg, Thanks for your post.


Btw Predator assets:

[jcgswims] 19/12/2018 09:23

An update from Predator yesterday re Trinity Inniss - 30secs in

[smoggyg] 19/12/2018 08:02

The Guardian18 Dec '18 - 17:05 - 6603 of 6606
0 2 1
I just wonder where the share price will drop to if we have failed to meet the end of year target yet again.////// Good post but 'if' should be changed to 'when'.

[smoggyg] 19/12/2018 07:59

You would think that Cerp would bounce after all this falling but I am not so sure, as Cerp is still valued at £27m despite losing £4m per annum!/////////COLUMBUS ENERGY RESOURCES ORD 0.05P KEY NUMBERS
Latest Share Price (p) 2.90 Net Gearing (%) 2.06
Market Capitalisation (£m) 27.25 Gross Gearing (%) 17.78
Shares in issue (m) 830.88 Debt Ratio 7.21
P/E Ratio -3.49

[smoggyg] 19/12/2018 07:55

It was arry apache,I tried to warn him to sell at 7.25p but 'arry knows best'./////Lind issued monthly with millions of 4.5p shares SELL at 7,25p! Free CERP 12bn