Columbus Energy Resources Share Discussion Threads

[northpole2] 21/3/2018 11:55

But the SWP deal is real 12bn. It's not a prediction or hype. The deal has been done and even you can't say it isn't better than the old deal, the reduced up-front payment terms are clearly FACTS. You say there may be trouble ahead. But it would appear LK is delivering on what he has said he would do and he has stated since he started that it is a 3-5 year growth strategy. He has a track record of delivery on his promises (eg TAQA) so I would suggest it is unlikely there is trouble ahead due to the risk management processes LK is clearly adopting. And no placing either, that was clearly stated. Looks like you were wrong on that too.

[nexus7] 21/3/2018 11:47

From bigdouble
--------------------------------------

Mon 08:08

Columbus Energy Resources (CERP LN)#

Columbus Energy Resources (CERP LN) has announced a significant update in relation to the South West Peninsula (SWP) and the successful completion of the restructuring of the Beach Oilfield (BOLT) transaction. This will enable CERP to begin a fully funded exploration programme including well reactivation in Q2 2018 on the Bonasse field as well as analysis of 3D seismic on the SWP. This is expected to be followed by 2-3 appraisal wells drilled in H1 2019, subject to results. Although the operational turnaround at Goudron is a critical part of the strategy and drives near term cashflow generation, it is the exploration potential at the SWP which provides the key catalysts for a major rerating of the stock; this announcement is therefore a significant milestone for CERP in realising its longer term strategy.

Previously CERP help a 25% equity interest in BOLT via a local subsidiary and was due to acquire the remaining 75% for cash payments totalling US$184k and the adoption of a US$1.1m loan held by BOLT. The new terms which are significantly more attractive, in our view, are as follows. CERP will make a cash payment of US$450k to BOLT as well as a US$80k payment to Petrotrin to complete the purchase of a 27.5% interest in the Bonasse field. CERP will give up its 25% equity stake in BOLT and BOLT will retain the US$1.1m loan. CERP acquires access to oil and gas rights on the SWP.

CERP will pay deferred fees of US$500k to BOLT upon development of any other field than Bonasse within the lease and a royalty of 3% on net production from a development of the SWP license (excluding Bonasse). The royalty is payable on net production in excess of 10mmboe per annum and capped at US$1.25mpa.

In addition to the BOLT transaction, CERP has signed a lease agreement with Singh�s (Cedros) Estates Limited to provide CERP with guaranteed access to 100% of the SWP for oil and gas operations until January 2019 and from February 2019 a lease which provides CERP the same rights for a further 27 years. From February 2019 CERP will pay Cedros US$70kpa (escalated in line with the WTI oil price) as well as a royalty of up to 12.5% capped at US$2m for years 1-2, at 10% for years 3-8 and reverting to 12.5% thereafter. Drilling bonuses of US$15k will be paid upon spud of each of the first three wells.

The above is fully funded from existing cash resources.

The attraction of the SWP for exploration is that it has been relatively underexplored in comparison to the broader region. CERP�s existing interpretation of the multiple prospects indicates 20-400mn barrels in place. Furthermore, since the targets can be drilled from onshore costs are expected to be modest at between US$2-4m per well.

Currently CERP already has a small amount of production from the shallow Icacos oilfield while the Bonasse oilfield is currently producing c10bopd of 23 degree API gravity oil. CERP expect to be able to reactivate as many as


VSA cont Mon 08:13

Currently CERP already has a small amount of production from the shallow Icacos oilfield while the Bonasse oilfield is currently producing c10bopd of 23 degree API gravity oil. CERP expect to be able to reactivate as many as ten wells. Other historic drilling at Bonasse included 16 wells dilled to depths of up to 2,500ft. The only deep onshore well was drilled to a measured depth of 12,301ft found oil shows in the Lower Cruse and Lengua formations at a true vertical depth of 10,180ft. This well did not reach the Herrera Sandstone formation which leaves further undiscovered potential. SWP contributes 10p of our 26p target price despite its early stage which should highlight to investors the significant underlying potential.

The region is highly prospective due to its close proximity to the East Venezuelan Basin with which SWP shares its geology and on trend structures, offshore from SWP, have yielded discoveries in excess of 200mmbbls. We also note the recent announcement by BHP Billiton (BLT LN) which underpins the exploration potential in Trinidad. BLT has committed to testing three gas plays off Trinidad this year with a longer term objective of making oil discoveries.

This latest announcement CERP has confirmed the company�s ability to begin to realise its longer term ambitions in defining the exploration potential of the region via low cost onshore drilling. The announcement from BLT and the other interest from majors in the region underpins that exploration potential, in our view, although we highlight that their exploration is offshore. With the shares having eased back recently as the WTI oil price has pulled back from above US$65/bbl we believe that CERP�s current valuation provides a compelling entry point for investment exposure to Trinidad�s exploration upside.

We reiterate our Buy recommendation and 26p target price.

==============================

CERPNews Today 10:01

Maybe another two RNSs this month then. Love these buses

[jcgswims] 21/3/2018 11:32

Could be a good call from Horseyhead re the imminent small deal Leo mentioned?

RE: Acquisition? Today 10:58
Transfer of remaining 50% of icacos field from touchstone??? They don’t want to invest in it.

[kazz] 21/3/2018 10:58

Well offerman,re the extr 700k, look on the brightside, hopefully your other shares will be worth a lot more.
regards....Kazz

[offerman] 21/3/2018 10:54

Absolutely agree

[12bn] 21/3/2018 10:51

Hype,spike,crash. :) same old lgo/cerp. There may be trouble ahead.......

[the guardian] 21/3/2018 10:48

Just watched the video again. TRANSFORMATION is the word to take forward.

[12bn] 21/3/2018 10:47

Northpole2,I made no prediction,I merely cut n pasted the share price at 8.02am,it was a statement not a prediction.

[arrynillson] 21/3/2018 10:45

12bn - be afraid - YouTube are teaming up with wickepedia to alert people to fake news stories - here's one from you ' can't see any difference between LK management and NR ' - made me chuckle 12bn - how are Fred & Wilma?

[the guardian] 21/3/2018 10:36

Hi offerman. Yes, I was a bit peed off with the lack of news, but I'm back to being excited again, now that I know everything is on track. If anything, they are ahead of forecast on all fronts. I really feel that Leo and the great team around him are going to make us quite rich within a few years.

[offerman] 21/3/2018 10:31

Morning TG Well done for not selling as I know you were close a coupleof times. Patience really willPay off big time with this one that's for sure.

[the guardian] 21/3/2018 10:27

JCG, thank you so much for the video link. Once again, it was inspiring and Leo had my eyes watering with his smile. We seem to be on the cusp of the exponential growth he talked about in May last year. The imminent acquisition will be a great bonus.

That has certainly cheered me up. Spring is here, the sun is shining and CERP is moving upward again. Fantastic :-))))

[ride daice] 21/3/2018 10:24

RNS tomorrow ?

[fsawatcher] 21/3/2018 09:39

im sooo excited that my head just spins around and around

stars aline and the sun shines the world bootifooolls innit

when the cruise ship goes out it does all the islands know wot i mean

[humphries1] 21/3/2018 09:28

WOW pr you got it bad LOL

[pr100] 21/3/2018 09:16

Leo is the most investable CEO on AIM imho.

It's not easy to express but I think I'm in love with him.

[ccr1958] 21/3/2018 09:11

Morning chaps 😊

[carpadium] 21/3/2018 09:05

Jcg, many thanks for that, looks like the start of a brilliant few days that should put us in orbit. Can't wait for this new deal announcement!

[markbarker] 21/3/2018 09:02

Intesting might have a few more good post very thin on the offer having to pay up

[kazz] 21/3/2018 08:51

Marvellous.
Leo trying to contain himself with forthcoming news
Cheers jcg
Regards.... Kazz

[edgein] 21/3/2018 08:49

Jcg,

Thanks for the link, excellent interview. All going to plan as expected, almost doubled production since LK took over. Cleaned up the dog's breakfast and made a superb deal on the SWP with the BOLT deal, to be drilled early next year 100%. Bonasse reactivation about to start and deepening those wells late this year. Fully funded! Even better LK the big tease has pointed towards our first acquisition in Q1. I make it 10 days left of Q1 and not so many working days! Small acquisition to close and working on an acquisition of $10m's that could be bigger than SWP! We're now in the transformational stage of development.

Regards,
Ed.

[jcgswims] 21/3/2018 08:49

A smaller deal hoping to be completed by the end of this quarter - interesting. Good interview with Leo, very pleased.

[northpole2] 21/3/2018 08:46

A red start 12bn? No. Now jumping upwards. Just watch it go in completely the opposite direction today to your predictions. Yet again you are wrong. I feel sorry for you. There may be trouble ahead for your predictions.

[arrynillson] 21/3/2018 08:34

12bn - why so guarded now with this 'IMO ' qualification- are you sure you haven't been peeking at my posts 12bn!