Columbus Energy Resources Share Discussion Threads

[offerman] 11/1/2018 12:42

Afternoon HollyI was thinking that and the first sign seemed to be when there were a whole raft of sales over the last two days the price dipped a little bit but not in conjunction with the amount of sales to buys ratio that's pointing to the bit more strength in the SPAlso probably because of Stuart monk adding some stability to the price.However, for me I'd like to see concrete evidence now we have the Christmas update out of the way I would like to see further progress come the end of March especially as the WTI has been rising steadily of late.

[holly day] 11/1/2018 12:35

Afternoon all. Seems there's some underlying interest again today and good to see steady move north. Be lucky.

[garnhiem80] 11/1/2018 12:20

Of course it couldn’t have been a bad week for oil production..

Who knows :)

I like your stance on converting the loan 12bn, becoming debt free and increasing cashflow.. at £4.5p the amount converted would be more than the value of the loan in March, you reckon they will release less shares?

[12bn] 11/1/2018 12:12

It seems the company prefers not to give production updates very often,except 1 week ones when production is strangely good of course! Smoke n mirrors!

[nexus7] 11/1/2018 11:36

From faz7475 Today 10:07
------------------------------------
RE: Wti
For those that have seen this before.. here it is again ... not long to go now I hope...

[arrynillson] 11/1/2018 08:50

12bn - Lind were a good choice for CERP at the time as the queue of potential lenders at the door of a near bankrupt company was short but our partnership has worked very well and I don't see shareholders moaning about the deal - it's only swingers like Rosie and peculiar non holding bile sprayers like you that are exercised by it - you are just miffed Lind didn't follow your advice to sell in the low 2s some weeks ago haha - you really know your stuff 12bn!!!

[12bn] 11/1/2018 08:28

Terms of the Funding Agreement

On 9 December 2016, US$1.825m was drawn down by the Company (the "First Tranche"), repayable in cash over 24 months from the Company's free cashflow. Repayments are up to date and as of 31 August 2017 the balance of the First Tranche is approximately US$1.344m, with all repayments having been made in cash to date. Under the Funding Agreement, Lind currently has the right to convert some or all of the outstanding balance to equity at a conversion price of 3p per share.

On 10 September 2017, the Company executed the following value accretive amendments to the Funding Agreement:

-- Lind has agreed to increase the conversion price by 50% for the First Tranche to 4.5p per share from 3p per share upon completion of the deal.

-- The Company has 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 has 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 Columbus in Q4 2017. The Second Tranche is to be repaid by the Company at a monthly rate of US$38,719 in cash or shares, //////Looks clear to me,17m 4.5p shares due to hit the market in March. Those 3p shares were lucrative for Lind back in September,these VCs certainly know how to make a profit,unlike Cerp,imo.

[12bn] 11/1/2018 08:21

It looks like a lot of PIs are locked in here now having paid too much yesterday,shame that! :)

[garnhiem80] 11/1/2018 00:19

I didn’t say they wouldn’t go to LIND upon release from escrow, they need to hold voting rights for that which would require LIND to be a third party within the escrow agreement and generally used for a transaction.. but it’s associated with the amended terms of the funding agreement.


They do hold the option to purchase more shares tho, just in case the escrow shares are released.. the share price has held up pretty well for that!

“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.”

[brasso3] 10/1/2018 23:43

Nice rise today. :)

[arrynillson] 10/1/2018 22:42

12bn -informative post from jcgswims regarding CERP attitude to publishing production figures - will suit shareholders - sadly not so good for people like you!

[garnhiem80] 10/1/2018 22:18

Sorry Ross.. I’ve not seen any information to suggest the value, let alone it was a compensation payment.

A little odd placing a compensation payment into escrow, LIND can’t even use them as voting rights nor trade them.. not even able to issue a tr1.

Wouldn’t shares in escrow also have associated terms before being released into market?

What terms are you suggesting for Lind to release the shares from escrow for their compensation payment? Why is the time scale for a minimum of six months and not a specific date.

I maybe wrong.. but you are suggesting I’m wrong based on your own opinion.

[jcgswims] 10/1/2018 19:57

Updated Questions to the Team



In the past, the Company provided operational updates to the market via RNSs on a very regular basis, sometimes weekly, but more recently the new leadership has limited the number of market announcements and has only been providing production updates quarterly. The lack of updates has the potential to lead to more volatility in the Company’s share price and potentially allows traders to speculate on a short-term basis. Why won’t the Company provide more regular market announcements of production and other performance as a means of improving information flow and better managing investors and other parties’ expectations?


Columbus Energy has a very clear strategy to build a significant E&P company over the next 5 years and this has been very clearly outlined by the new management. This strategy is different from the previous management and so may well mean the share register will change over time which we are aware of. The Company is encouraging shareholders to grow with them and to be long-term shareholders which is in everyone's interest. The management have laid out very clear targets which they expect to meet and hope to beat but that cannot be guaranteed. The management will run the Company in the best interests to achieve the best long-term share price capital appreciation and they are aligned with our shareholders to do this.

We are fully aware of our market obligations and are keen to keep our shareholders updated. To avoid confusion, any meaningful operational, business or price sensitive news will be announced without delay. In addition to this and as per our website, Columbus has made a commitment to publish its production updates at least quarterly to keep shareholders informed, in line with best practice in the industry and like many other E&P companies.

Whilst certain AIM companies chose to provide more regular updates for their own purposes, we do not believe that providing short-term updates on day to day production would help the market fully understand the overall performance being achieved by the Company in our operations. Production performance is just one aspect of how the Company wishes to grow its value. We also do not want to encourage short-term trading through such market announcements. In any company, there will be short-term issues affecting any operation (good and bad) which if looked at in isolation may mis-lead the reader about real performance being achieved. The Company believes that reporting on such matters could introduce even greater volatility to the Company’s share price to the detriment of all shareholders. Reporting on all aspects of production, operational and business performance, taking account of the good and the bad (and the ugly!), will, the Company believes, provide the market with more meaningful information when undertaken in a co-ordinated and measured fashion.

As mentioned above, it is industry best practice to provide production updates on a quarterly or half-yearly basis, with other operational or price sensitive announcements being made without delay. The Company will adopt best practice in such matters and will not seek to obtain short-term gain through communications for the sake of it.

[nexus7] 10/1/2018 18:42

Citi Says Trump and War Could Help Drive Oil to $80

OPEC disruptions led by Iran, Iraq may rise to 3m b/d in 1H
U.S. military actions over North Korea among bank’s wildcards

This year may be anything but staid for the oil market as Citigroup Inc. predicts wildcards including war, Middle East tensions, Donald Trump and Kim Jong Un driving crude toward $80 a barrel...

[nexus7] 10/1/2018 18:37

Crude Holds Above $63 as U.S. Stockpiles Fall for Eighth Week

→ Nationwide crude inventories fell by 4.95 million barrels: EIA
→ Draw is largest for this time of year since 2014, data shows

Oil was poised to close above $63 a barrel for the first time in over three years as American crude stockpiles shrunk for an eighth straight week.

Futures rose 0.6 percent in New York, holding on to its three-day rally, after the Energy Information Administration said U.S. inventories fell 4.95 million barrels last week. But gains remained capped as the drop was smaller than the 11.2 million-barrel decline reported on Tuesday by the American Petroleum Institute. Still, the draw was the largest for this time of year since 2014...

[offerman] 10/1/2018 18:14

Nice post Carp

[the guardian] 10/1/2018 17:43

I agree Carpadium and the last thing I want to see is weekly updates. If everyone simply accepts the published targets and the company is operating broadly in line with those targets, then the need for interim updates is not necessary.

[carpadium] 10/1/2018 16:48

Well, this is a bulletin board and as such a collection of opinions that concur or disagree.

I’m probably in a minority when I say good for the board in their reading of what’s best for the growth of the company aligned to LT shareholders’ interests. I wholeheartedly believe that the more RNSs pumped out by a company the more active the stock, the more numerous the spikes , the more opportunities for traders time and time again. LGO’s ridiculous m.o. proved this. Whereas an approach that limits to essential, meaningful news stands a far better chance of attracting new investment coming in on the day at a higher price.

It’s to be expected that some holders will tire of holding a stock they find unexciting because of slow news stream and move on, imo they’re likely to be the short term impatient rather than traders and as such of little importance in the grand scheme of things, ie the road map/timescales.

There is a happy medium of course and I think for those that have full trust in the board and purely want them to get on with their job, which I’m sure we all do, CERP have got it more or less right. GLA.

[garnhiem80] 10/1/2018 16:29

Shares in escrow are not a concern, and do not require wishful thinking.

Although allotted, nobody can get their hands on them :)

The amount of money you are suggesting wouldn’t be considered as “fair value” in terms of providing a sweetener..possibly even illegal.

[garnhiem80] 10/1/2018 16:19

Ross, the benefit for LIND is it’s providing security for the money lent by LIND..

I’m sure LIND would love to be able to be able to trade those shares.. maybe CERP could agree to convert the loan on the 5% agreement, $1.3m would see an additional $65k for Lind.. but I’m sure their still happy receiving a higher interest rate on the monthly payments too. :)

[offerman] 10/1/2018 16:16

More sells than buys why does the price go up?

[garnhiem80] 10/1/2018 16:13

High production targets are not required.. an oil company can produce 5000bopd and still not cover all its financial obligations and lack opportunities.

It’s more about “cashflow delivery “ which will unlock the potential within the company.

It’s a myth that the share price is reflected in production output, debt levels can still be stretched and operational costs can still be a struggle, not with CERP :) the down side in oil price is covered. now on a one way street for growth.