Columbus Energy Resources Share Discussion Threads

[nexus7] 22/2/2018 17:54

From emilyt16 Today 14:17
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RE: How much cash is left?
Ritson walked away because he didn't have the expertise to make it work. Goudron won't make this company but it's the key to the future success of it by enabling us in the long term imo 2019 to drill the swp.As long as Leo keeps us cf++ we should be on track. Goudron is the bread and butter nothing more. Neil failed to recognise this and lost focus on the main prize.


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(I miss speculater and his info)

[offerman] 22/2/2018 15:45

Hi Holly Ditto mine too.

[holly day] 22/2/2018 15:41

Thanks for those links NEXUS. Reading the 1st RNS, 13th Jan 2017, in it "Ministry is in the process of preparing a final decision for submission to, and ratification by, the Spanish Cabinet of Ministers."

So all we got was no extension and we seem no nearer concluding anything concrete.

From my experience with Spanish authorities, they are one of worst in Europe with a mañana attitude to everything in life. So I'll not hold my breath for any time soon!

[nexus7] 22/2/2018 15:04

If you want reread Ritson's plan for Spain you will find it here

Update, Spain
RNS Number : 1760U
LGO Energy PLC
13 January 2017



and
La Lora Concession, Spain
RNS Number : 4151V
LGO Energy PLC
30 January 2017




but now we´ve got Leo Koot not N. Ritson so wait and see.

[12bn] 22/2/2018 14:36

rossannan,like you have me filtered I suppose? One minor detail,advfn do not allow you to read or post on a filtered persons thread,eos. The fact that you post here means that you do not have me filtered,your post is the proof! What an idiot rossannan is and always was. For those that are relatively new here Rossannan held LGO from 6p down to under 1p and he kept averaging down all the way,the idiot. He has lost a fortune on LGO/Cerp.

[arrynillson] 22/2/2018 12:56

Holly - certainly agree focus has been other than on Spain and i don't doubt Leo would have preferred to have washed his hands of it from the outset but he couldn't and he has had to listen to advice and formulate the best way to progress - which I support.

If Spain is agreed we won't be talking about 100 bopd - it will be 500/1000bopd quite quickly with the sidetracking wells planned but that does involve CapEx - these wells have historically produced multiples of the production I have suggested.

So I believe it's worth some effort and I applaud CERP stance but can't get more excited until the 30 year deal is done.

If you want to be stimulated further about potential perhaps Garnheim will put up the link to the NR tender where he detailed CERP plans for development as I can't readily lay my hands on it.

[holly day] 22/2/2018 11:55

arrynillson, apologies to all if my post came across as 'I told you so', it was not intentional.

Personally, I remain of the opinion that Spanish field adds little to our coffers, relatively speaking. Throughout Leo's tenure, the debates here have been all about SWP, WF, BOLT, South America and that's what every presentation from Leo referred to. If for example we reach 1000 bopd from Trinidad, it is really worth the effort to add another 10% to production from Spain where you'd be dealing with different laws, workforce, work ethics... to add to it, the money we've been losing (need to recover) since the expiry of the license. In a grand scheme of things, I'd find Spain a distraction. All IMO of course. Yes, these things take time. I'd happily eat the humble pie if I see a tweet from Leo standing at the La Lora site, navigating a drone for his next presentation!

[arrynillson] 22/2/2018 11:02

Holly - everyone entitled to their POV but I see no grounds for any renegotiation as locals lobbied their Gov ages ago to support CERP continuance with a 10 year roll over which would have been smoothest option - to no avail!

CERP have advised they will tender for 30 year new concession and IMO will offer a cash sum reflecting long term value to CERP who have intimate knowledge of the field.

People seemed to think the Spanish issue could just be brushed aside by Koot because of his stated focus of South America at the launch party - but legal issues need to be addressed and Koot does seem to respond to advice when it is soundly based.

[holly day] 22/2/2018 10:16

Well, it doesn't surprise me about the Spanish assets. I have said all along, it no longer forms part of the CERP synergy going forward. Whilst some here have put some value on it, Spanish bureaucracy, resources being tied up and logistically it's a distraction, I expect a walk away from the region and focus on the real 'bang'. Wonder if Ritson has now left or near packing his bags?

I think also, as someone said earlier, if there is any chance of re-negotiation, it will have to be on our terms with significant financial incentive from the Spanish Govt to offset our expenditure during this waiting game and to help rebuild a viable production facility. Cob webs and legacy issues etc.. as no doubt Leo would want to do things his way.

[northpole2] 22/2/2018 10:09

As usual 12bn you shoot form the hip without engaging brain. Why would it be "trouble ahead" when LK is dealing with the issue head-on and the cost of the redundancy process is fully budgeted and funded in 2018? They're dealing with issue which is what decent management should be doing.

[edgein] 22/2/2018 10:06

Arry,

True and you could tell at the AGM that LK was certainly peeved with the lack of progress over there and the asset had been written off the books before LK took over here. The upside was they could have regained it and jv'd it off for a few mil or something. Small beer compared to the plans for T&T and SA, Spain wasn't gonna make up for much of LK's planned $500m cap that's for sure.

Yeah he's a slippery sort that Roseann that's for sure.

Regards,
Ed.

[edgein] 22/2/2018 09:10

Limmer,

Yes Spain isn't even on most of the investors radar, it was less than 100bopd for most of the time. Unfortunate for the Spanish staff but it sounds as if LK did all he could to secure their jobs for as long as possible. Echo's the quality of the management we have here. Yes move to SA will be most welcome to drive these towards mid cap as well as the SWP drilling.

Arry don't forget we've a waterflood specialist with LK, he described the asset he had with TAQA on cormorant field as a washing machine the amount of water they were putting into it. The rest of the team are secondary recovery specialists too. I wouldn't compare these to RRL in the slightest. Many of the other little trinnys will stay as they are as LK moves this one forward. In six months LK pushed production up 71%, that's pretty clear to me who the movers and shakers are. Looking forward to the SWP fireworks, still hope he goes for Colombia for the first SA onshore asset.

Regards,
Ed.

[nexus7] 22/2/2018 08:52

From bigdouble Today 08:20
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VSA
Columbus Energy Resources (CERP LN) has announced that it is proceeding with the closure of its Spanish £La Cora£ concession in line with earlier guidance. Although CERP intends to participate in the tendering process for a new concession the timing, which is expected to be Q2-Q3 2018, is uncertain and therefore CERP has opted to enter a Collective Dismissal Procedure. This will enable CERP to minimise costs whilst the tender process and closure of the concession is resolved.

We reiterate our Buy recommendation and 26p.

[limmershin] 22/2/2018 08:47

An albatross we’re well rid of.
Reading between the lines of the statement it sounds as if the Company isn’t too fussed as to whether they’re successful or not. More a case “yes, we’ll tender; we have the local knowledge and experience, and it got to be more on our terms”.
South America is so much more attractive as a business proposition - albeit it’s not without its issues!

[dafrog] 22/2/2018 08:28

Spanish bureaucracy! They invented red tape. UK bureaucracy isn't helping UKOG either.

[arrynillson] 22/2/2018 08:15

12bn - those that research this share knew the Spanish position was unresolved so no big surprise there - I'm glad to see the reiteration they are going for the new concession because, if granted, it will be a considerable asset to the business either to sell or to generate a large increase in bopd with appropriate capital expenditure - the ROCE looked very attractive on the tender plans submitted 12bn.

[nexus7] 22/2/2018 08:08

Business update - La Lora Concession in Spain
RNS Number : 5837F
Columbus Energy Resources PLC
22 February 2018

[arrynillson] 22/2/2018 08:05

Rossannan - ' sellonnews ' merely commented on Range reporting that they are increasing yield from the water flood project which is being ramped up by increasing volume of water injected.

You should know by now Ross that the Schemes from RRL and CERP differ hugely because CERP shareholders have already incurred the major drilling costs of the water flood wells so that ongoing costs to generate increased yield should, hopefully, be much less than RRL where new drilling was required

Im pleased for RRL that they are achieving increased yield through water flood which augurs well for CERP IMO and confirms what we already know, that water flood in Trinidad can be successful although ROCE must always be considered.

[marvelman] 22/2/2018 08:00

Nice story Guardian..and nice to see the humanity that lies behind someone’s otherwise untelling name

[tmmalik] 22/2/2018 07:58

I am expecting some update on South West PeninsulaNext month before end of q-1Also water injection going to start next monthSo next month we will see share price rise to 7-8p Duor

[12bn] 22/2/2018 07:53

There may be trouble ahead........./////////RNS Number : 5837F

Columbus Energy Resources PLC

22 February 2018

22 February 2018

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Business Update - La Lora Concession in Spain

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, provides the following update affecting its Spanish subsidiary, Compañí;a Petrolifera de Sedano S.L.U. ("CPS").

As previously announced by the Company on 21 December 2017, the Spanish Government has confirmed they will close the current La Lora concession (the "Concession") in early 2018 after the completion of the relevant documentation and activities on the Concession, including certain dismantling works by CPS. Those dismantling works are now complete and the Company is expecting the Concession to be formally closed shortly.

Following such closure, Columbus intends to participate in the tendering process for a new concession (expected Q2-Q3 2018). The duration of the tendering process, however, is still un-certain and, as such, the Company is not prepared to un-necessarily continue to bear the ongoing costs of the employee suspensions which commenced under Spanish law on 23 February 2017. CPS will therefore commence a Collective Dismissal Procedure ("CDP") under Spanish law on 23 February 2018 that will affect its employees in Burgos, Spain. The Company will retain sufficient employees in Burgos and Madrid to participate in the tendering process and maintain the Ayoluengo field on a "care and maintenance" basis until a new concession is awarded, as required by Spanish regulations.

The CDP will take approximately 30 days to complete. The cost of the CDP, an estimate of which is included in the Company's 2018 Budget, will be fully met from currently available funds within the Company.

The closure of the Concession has been a protracted and frustrating process for the Company with an apparent disregard by the Spanish authorities towards maintaining the employment of staff in the Burgos area. It should have been a relatively short and straight-forward process to close out the Concession to enable the tender for the new concession to take place but, despite these delays, the Company has continued to meet its ongoing obligations on the Concession, including meeting the staffing, legal and operational costs associated with keeping the field in good order. This has involved the Company continuing to provide funds to CPS of approximately US$60,000 per month to meet ongoing costs. The above development will reduce the operational costs of the Company on an annualised basis, in line with the Company's continued focus on capital discipline.

Leo Koot, Executive Chairman of Columbus, commented:

"We have taken a very difficult decision, affecting our remaining employees in Spain. The decision to commence the Collective Dismissal Procedure was taken because the Company has incurred significant costs in Spain due to the Government's decision not to renew the La Lora Concession, exacerbated by the lengthy period between that decision and the (yet to be completed) closure of the Concession. Given the time we expect it will take to complete the tendering process for a new concession, it is unsustainable for the Company to continue to incur the current costs of suspended operations.

"We would like to thank the ongoing support we have received from the community local to the Ayoluengo Field, including the trade unions and local politicians. Despite the latest developments we are committed to re-applying for the new concession and obtaining value from our investment and today's news is not impacting our overall strategy and delivery of our Trinidadian assets which are the main cash generator and opportunity for growth of the business."

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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