Columbus Energy Resources Share Discussion Threads

[edgein] 26/6/2018 13:56

Offerman,

Likely a mix of equity and debt. If you think the material investors will only want interest on a loan you'll be disappointed. They may need about 20% of CERP, hopefully at a premium depending on just how good the first material deal is though. If we don't see that acquisition until next year perhaps it'll be funded off the back of T&T's first herrera discovery, stranger things have happened in one of the most prolific oil basins in the world. They do find oil there occasionally. :) Perhaps there is some oil down there, to quote LK there's oil pretty much everywhere in T&T.

Regards,
Ed.

[edgein] 26/6/2018 13:52

Roseann,

Yes the foreseeable future. That includes Goudron, Icacos, Bonasse and at least one well from SWP and potentially at least 1 material acquisition in 2018 (which will be funded in a separate way). You may see that as very rosy, but then I'm just stating the facts. You however seem to be very rosy on your other duff even though they've fallen from 27p to 15p or are spiking up to 15p and then get sold off again on small volumes. TRIN even with its production needed that rescue placing. When will it be TXP's turn? CERP on the other hand fully funded for Goudron, Bonasse, Icacos and first well in the SWP. Tell us what they'll be producing at the end of H1 '19 and I'll tell you how much money they'll need after that! :)

Good to see TRIN has brought you back to reality though it was overdue. As stated previously CERP is head and shoulders the best of the T&T producers and is the only one set to reach mid-cap status. I guess its why I only hold CERP out of that lot. Perhaps one day TRIN will also be self-financing. But at one stage they had something like $40m in the bank and next to no debt, changed days now though.

Regards,
Ed.

[offerman] 26/6/2018 13:21

Sorry Ed I meant the as yet unseen material acquisitionThat will have to be funded somehow...

[holly day] 26/6/2018 13:14

Again, I think it depends how you read the "-- Fully funded for 2018 work programme and to pursue exploration opportunities in the South West Peninsula"

Then the "-- The Company aims to drill its first prospect in the SWP in H1 2019"

If the 'exploration opportunities' and 'drill its first prospect' in SWP are the same, then that too is fully funded internally. Which creates a reasonable assumption it is for 'foreseeable future'. I don't think we can start looking beyond 1st half 2019 at this stage.

[edgein] 26/6/2018 12:59

Offerman,

LK didn't say that, he said that any funds raised will be value accretive i.e. to fund a new acquisition. You can bet the material investors will want a slice of CERP when it comes to the first material deal.

Roseann,

Leo Koot, Executive Chairman of Columbus, commented:

"We are pleased to have signed a sale and purchase agreement for the purchase of a 50% interest in the Icacos field and we look forward to quickly closing the transaction, further strengthening our position in the SWP, so that we can increase production from Icacos and integrate the acreage into our regional strategy. We are on track to building a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad. In line with our ongoing focus on capital discipline, we are not expecting to pay any upfront payments for the Icacos purchase. The consideration will be deferred and mirror the actual production levels from the Icacos field. All operational activities on Icacos will be funded from existing cash resources."

"Strong position for exceptional growth through the company's consolidated SWP acreage with an exploration programme planned and funded for its initial well campaign

-- The Company aims to drill its first prospect in the SWP in H1 2019

-- Further development planned for the Goudron field, with the Company aiming to materially increase production from the field to over 800 bopd by year-end 2018

-- Fully funded for 2018 work programme and to pursue exploration opportunities in the South West Peninsula"


Above states fully funded for its work programme for the foreseeable future which will include the reactivation of Bonasse and workover/stimulation of Icacos and more importantly the initial drilling on SWP early next year.

Regards,
Ed.

[ccr1958] 26/6/2018 11:22

MMS just trying to get some interest in the ‘ old dog ‘ ?

[h van der h] 26/6/2018 10:49

i don't think it's that clever Offerman, just good old fashioned supply and demand. with no apparent urge for buyers it may sit or drift depending on pi's finding another interesting venture for the short term until this wakes up again. i also think the original announcement about Icaccos 50% was brought forward partly due to media promises LK made and maybe even due to it being suggested as a possibility on here and lse :) and yesterdays announcement of SPA didn't do anything to rejuvenate interest as it was a known quantity. what i would like to know is have they actually reactivated Bonnase and are the now operating Icaccos? "with the effective date of the transaction being 1st April 2018"

[offerman] 26/6/2018 10:08

I am now wondering if the share price is actually dropping like a stone because the MMS are factoring in a very large material deal. They know by gaining a dealA sacrifice of some sort needs to be given I.e share placing dilution ( WHICH WE KNOW WONT HAPPEN AS PROMISED by LK. but just using example) OR giving away a percentage which is more likely . So mms seem to be anticipating news of a large magnitude so maybe dropping the share price as it's an uknown . All pure guesswork on my part theoretical. Might just be the massive seller/s still offloading that's purely driving it down

[offerman] 26/6/2018 09:58

Well said H Van

[holly day] 26/6/2018 09:54

Some nice level headed posts this morning guys. Thnx. Just wished some you guys would post more regularly to keep us in check with the realities!

Carpadium, thanks for the correction y'day. Yes, of course I meant Bonasse as I did refer to it an earlier post. Good spot. :0) In any event I hope to hear if the stated work in 2nd 1/4 did get under way.

[h van der h] 26/6/2018 09:40

some good points there Edgein, i was wondering when the elephant in the room would come forward lol, i think although very painful they had to somehow dodge the 6p cln bullet coming their way, and very true that could be why the race is on at txp to increase value before needing to do similar to cushion existing sh'ers. as for cerp, it may be boring but thats the life of living within your means, it takes time same goes for life, we have been through this type of debt at great cost already and are fortunate not to have any field requirements that we have to meet anytime soon.. swp is the company maker , goudron is just the fuel to keep it all running

[edgein] 26/6/2018 09:22

Carp,

Each to their own fella, imo LK has done exactly what he's said on the tin. Got the company cash flow +ve, almost doubled production (without drilling), cut costs, fixed numerous legacy issues and got us self financing. All within 12 months. Goudron work continues and we're also self-funded for Bonasse, Icacos and the first of the SWP. That's a remarkable turnaround from the old LGO days. LK doing the business as planned. He's made this one an investors stock, no longer a punters stock.

A material acquisition(s) in SA are well within LK's means. He ran TAQA after all. Acquiring a material asset in SA won't slow the development of Goudron, I've full faith in the man's ability to run multiple developments both onshore and offshore (TAQA). Even if they do make a material field redevelopment acquisition in 2018 I don't expect that will make a slight difference to their plans for Goudron for this year. It'll just diversify their risk, the SWP drilling given the scale and production potential from a new Herrera discovery is likely to give old Ed heart palpitations early next year. But would be less risky if we had another material field redevelopment and a mid cap for example. To quote old LK, material asset, multiples of the current value, bigger than the SWP. We know its multiple deals/assets as their talking in both Suriname and Colombia. Just focus on the prize and forget other duff that's pushed on here by non-holders desperate for folks to buy their duff from them.

Regards,
Ed.

[carpadium] 26/6/2018 09:08

My point Ed is we've hardly started with the value growth production stage (to 12p as per company intro)but then the original strategic road map is quite a bit off track.
Think they've built in a few flyovers!

[edgein] 26/6/2018 08:52

Carp,

Well LK is in talks in both Colombia and Suriname, most likely complex talks that will likely involve negotiations with the likes of Ecopetrol and the Suriname state oil company too as well as other operators. LK has stated that they're after a material acquisition, 10's of millions of $, so that's $20-90m. That old oil field that I pointed out has STOOIP back in 2001 almost as high as that of Goudron, but clearly better recoveries given what it was producing back then. But a redevelopment could have massive implications for the likes of CERP. The material investors will likely want a slice of CERP but this could also be part debt funded through some of LK's contacts. I expect it to be on very good terms like the schroder's deal and Lind renegotiations, not one of these heavily discounted efforts from debt ridden companies. The material investor will have an idea what their money is going towards. While the SWP drilling is gonna be mega exciting under LK's scrutiny, I'm expecting the first SA acquisition and field development to be potentially bigger than the SWP as LK hinted at. We're into the transformational growth stage after all and that's not coming from Goudron even if it does hit 800-1400bopd by year end.

Regards,
Ed.

[carpadium] 26/6/2018 08:29

Window shop SA by all means but I hope to see CERP devote all their fiscal and manpower resources to the SWP for at least the next two years. Anything other than what they are attempting to build in Trinidad, other than potentially Spain, I see as a distraction and too bigger a stretch.

[edgein] 26/6/2018 08:06

Roseann,

When's TXP massive discounted placing to control their debt coming? They'll need to do a TRIN at some point to get that debt mountain under control. As LK pointed out in the recent results, and presentations CERP live within their means, they've not got the massive debt of the other T&T companies and have far more upside funded internally as LK has pointed out. As TRIN management pointed out, perhaps they'll also be self-financing in years to come, who knows. CERP in the other hand are in their transformation phase towards mid cap. Whether it'll be acquisition or SWP that does it you'll just have to watch and find out.

Arry,

Well he's been pushing that TRIN and TXP have much more upside than CERP, short and medium term, even though they're not using LK's wise strategy of bang for their buck funding development through optimization etc, but try to do it through debt funded drilling. The hard reality of TRIN's debt came home to roost yesterday to the likes of Roseann. Roseann has no idea when the first material deal is coming for CERP, he's just trying to convince folks that the management's confidence of completing at least 1 in 2018 is misplaced. The management know a heck of a lot more about CERP than poor old Roseann though.

Regards,
Ed.

[nexus7] 26/6/2018 08:05

‏CERP Tweets

@Columbus_ERP
22 h

Following the previously announced acquisition of 50% of the #Icacos field, #Columbus is pleased to announce a further acquisition of interest in the field, resulting in #CERP’s subsidiary now owning 100% of #Icacos. See the full release here

--------------------------

@Columbus_ERP
19 h

“We are pleased to have purchased the remaining 50% interest in the #Icacos field, further strengthening our position in the #SWP” – Leo Koot #CERP CEO. See todays full release here

---------------------------
Columbus ERP
‏
18 h

“We are on track to building a core exploration, appraisal, development and potentially significant production hub in the #SouthWestPeninsula of #Trinidad” Leo Koot #CERP CEO. See todays full release here

----------------------------

Columbus ERP

‏
16 h

The #Icacos field currently consists of six wells, with three on production, #CERP plans to undertake analysis of the potential for a well reactivation programme and undertake well stimulation and other well activities to increase production.

[arrynillson] 26/6/2018 02:55

Ooooooooooooooeeeeeeeeeeeeeeeeeh Edgie has pressed one of Rosie's buttons - prepare for diatribes on CERP v TRIN for weeks!

[arrynillson] 25/6/2018 22:18

Edgein - I did follow Stuart when he was attempting to make the steam injection viable in Madagascar but POO was against him and the API of circa 10 didn't help - steam injection appeared quite complex and expensive and I gave it a wide berth - I reckon Goudron with different issues is probably less of a headache for him - at least he knows the pitfalls!

[edgein] 25/6/2018 18:59

Bet Stuart A at CERP would like a crack at this one: He's got a lot of experience with SAGD and steam flood etc.



Regards,
Ed.