Columbus Energy Resources Share Discussion Threads

[garnhiem80] 13/7/2018 11:52

Don’t worry 12bn.. there will be plenty to talk about in the not too distant future 😉

[12bn] 13/7/2018 11:17

Columbus are also raising £3.25m via a convertible with Lind AM excersisable at 8.1p as ////This from 'malcys blog' posted by Herr Jcqswims is WRONG,eos,read my post above,the $3.25m will be repaid in cash OR by 'ISSUING SHARES AT THE PREVAILING MARKET PRICE',this should be put right on jcqswims thread or do all you holders prefer lies to the truth?

[garnhiem80] 13/7/2018 11:13

Will wait for more detail on the benefits from Leo 👍

[12bn] 13/7/2018 11:09

12bn13 Jul '18 - 10:01 - 1106 of 1113 Edit
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There is a lot of confusion on the rampers only thread where idiots like the offerman,Edgein and jcgswims think that no shares will be sold under 8.1p by Lind but this is wrong.Read this carefully,the 8.1p refers to outstanding loans and new loan repayments that Lind requests in shares but new loan cash requested by Cerp will be repaid at current the market price at the end of the month. Here it is.////// The Lind Facility

Details of the Lind Facility are as follows:

The Company has the right to drawdown funds as follows:

-- up to US$2.25 million of convertible loans for a period of up to 180 days after execution of the Lind Facility (in two tranches of US$1.0 million and US$1.25 million);

-- a further US$ 1.0 million of convertible loans, in tranches of US$0.5 million each, subject to mutual agreement with Lind and the Company having a minimum market cap of GBP25 million;

Should the Company not exercise its drawdown rights within the 180-day period, the agreement will lapse and no funds will be available.

If the Company elects to drawdown the first US$1.0 million ("First Tranche"), there is a 120-day repayment free window before repayment of the loans over a 20-month period during which Columbus can, at its election, repay at a monthly rate of US$60,255 in cash or by issuing shares at the prevailing market price on each monthly payment date. In the event the Company elects to drawdown the second tranche of US$1.25 million ("Second Tranche"), repayments of the Second Tranche will be over a 20-month period in either cash or equity in a similar manner to the First Tranche, with the monthly cash payment being US$75,319.

Lind has the right to convert the outstanding balance on the Lind Facility to equity at a conversion price of 8.1 pence per share.

[12bn] 13/7/2018 11:06

jcgswims13 Jul '18 - 10:17 - 5261 of 5262
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Malcys blog

Columbus Energy Resources
Columbus has announced the acquisition of Steeldrum Oil Company for £4.4m to be paid in 92.7m in shares plus add-ons. The acquisition, which seems to be a pretty good fit, bring with it 200-250 b/d (5.6m bbls) from the Innis-Trinity and South Erin fields plus a 83% WI in the Cory Moruga development (1.1m bbls). The sellers will hold around 18% of CERP shares in the enlarged company and have a lock-in period of only six months which should be noted.

Columbus are also raising £3.25m via a convertible with Lind AM excersisable at 8.1p as ‘the establishment of such a facility would, in effect, provide an appropriate “financial insurance policy” for the Company for the next six months whilst the new integrated organisation beds-in’.

All in all this //////// Another idiot jcgswims repeats an idiots post from the LSE! Am I the only person who can read an RNS correctly? The new money raised is at MARKET PRICES NOT 8.1p! Someone who reads this thread should raise this point on jcqswims rampers thread! Something useful for you to do arry,for a change. Not that I will read it as you are still filtered.

[the guardian] 13/7/2018 10:55

Point 2 in my previous post.

Predator has the right until mid 2019 to buy Innis Trinity for $4.2 million.

That means, as I interpret it, that subject to agreement, Steeldrum take $4.4 million
worth of shares from Cerp during the fourth quarter for Innis Trinity and the other fields but we may have to relinquish the field to Predator if they decide that they want it. At that point, Predator would pay us $4.2 million.

If Predator do not intend continuing with the farmin, then why would they work on another two wells at their expense?

[12bn] 13/7/2018 10:32

Garnheim80,why should I research steeldrum or Trinity Innis,I do not hold shares here,I merely used to. It takes up enough of my time explaining to the 'hard of thinking' some points in the RNS that are misinterpreted. I fully expect Cerp to raise cash on the back of this deal and repay it by issuing shares at the MARKET PRICE not 8.1p and this will act like a SEDA tap arrangement.

[12bn] 13/7/2018 10:26

repay at a monthly rate of US$60,255 in cash or by issuing shares at the prevailing market price on each monthly payment date/////// Is this too complicated for offerman and Edgein? Are they both stupid or what? If Cerp wants to exercise its rights to extra cash it will be at 'the market price on each monthly payment date' not at 8.1p,the 8.1p is not a new conversion price for new money requests just for old outstanding debts and new debts requested by Lind to be paid in shares. I guess when an RNS is issued the company complicates it slightly to confuse the stupid.

[garnhiem80] 13/7/2018 10:26

Done any research on steeldrum.. kept upto date with Trinity Innis 12bn :)

I’m sure Leo will update with the benefits 👍

[12bn] 13/7/2018 10:18

Edgein13 Jul '18 - 08:16 - 5251 of 5260
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Also very good to see continued support from lind with a new conversion price at 8.1p per share. Leo certainly knows how to do a deal on good terms////// Another idiot!

[jcgswims] 13/7/2018 10:17

Malcys blog

Columbus Energy Resources
Columbus has announced the acquisition of Steeldrum Oil Company for £4.4m to be paid in 92.7m in shares plus add-ons. The acquisition, which seems to be a pretty good fit, bring with it 200-250 b/d (5.6m bbls) from the Innis-Trinity and South Erin fields plus a 83% WI in the Cory Moruga development (1.1m bbls). The sellers will hold around 18% of CERP shares in the enlarged company and have a lock-in period of only six months which should be noted.

Columbus are also raising £3.25m via a convertible with Lind AM excersisable at 8.1p as ‘the establishment of such a facility would, in effect, provide an appropriate “financial insurance policy” for the Company for the next six months whilst the new integrated organisation beds-in’.

All in all this is another sensible deal by Columbus which is synergistic and paid for with shares as per their ‘financial discipline’ regime. I think that Leo Koot wants to build the company and has very high ambitions and whilst this is relatively small, it is part of the grand scheme to expand. Keeping his new shareholders on board will be important as I’m sure there are plenty more deals down the road

[12bn] 13/7/2018 10:10

offerman13 Jul '18 - 07:20 - 5239 of 5260
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Looks quite good to me
Of course dilution expected
as we said all along with issuance of extra shares .

What I do like

LIND CANT CONVERT UNTIL 8.1 Wow ///////Idiot.////////offerman13 Jul '18 - 07:57 - 5246 of 5260
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How can 75000 be bought before open?//////// Moron!

[12bn] 13/7/2018 10:06

repay at a monthly rate of US$60,255 in cash or by issuing shares at the prevailing market price on each monthly payment date///////This sounds very much like a Seda tap agreement. Someone should also tell the offerman that you can buy shares in the pre-market before the market opens at 8 am. Offerman really knows so little that others should put him right.

[holly day] 13/7/2018 10:04

Morning all, just seen the rns...time to have a good read.

Hope someone attending the AGM will shed more light on matters later on.

The broker target should be around 20/21p....based on the dilution. May be slightly lower due to costs associated with consolidating the two businesses over the rest of 2018. But academic as apart being house broker, no time frames ever given for their targets and rarely impacts SP!

GL all.

[12bn] 13/7/2018 10:01

There is a lot of confusion on the rampers only thread where idiots like the offerman,Edgein and jcgswims think that no shares will be sold under 8.1p by Lind but this is wrong.Read this carefully,the 8.1p refers to outstanding loans and new loan repayments that Lind requests in shares but new loan cash requested by Cerp will be repaid at current the market price at the end of the month. Here it is.////// The Lind Facility

Details of the Lind Facility are as follows:

The Company has the right to drawdown funds as follows:

-- up to US$2.25 million of convertible loans for a period of up to 180 days after execution of the Lind Facility (in two tranches of US$1.0 million and US$1.25 million);

-- a further US$ 1.0 million of convertible loans, in tranches of US$0.5 million each, subject to mutual agreement with Lind and the Company having a minimum market cap of GBP25 million;

Should the Company not exercise its drawdown rights within the 180-day period, the agreement will lapse and no funds will be available.

If the Company elects to drawdown the first US$1.0 million ("First Tranche"), there is a 120-day repayment free window before repayment of the loans over a 20-month period during which Columbus can, at its election, repay at a monthly rate of US$60,255 in cash or by issuing shares at the prevailing market price on each monthly payment date. In the event the Company elects to drawdown the second tranche of US$1.25 million ("Second Tranche"), repayments of the Second Tranche will be over a 20-month period in either cash or equity in a similar manner to the First Tranche, with the monthly cash payment being US$75,319.

Lind has the right to convert the outstanding balance on the Lind Facility to equity at a conversion price of 8.1 pence per share. There

[12bn] 13/7/2018 09:37

-- The initial consideration for the acquisition of Steeldrum will be paid in Columbus stock through the issuance of 92,743,775 shares, equivalent to 12.5% of the current issued share capital and GBP4.4 million (approx. US$5.8 million) at the latest closing mid-market price, with certain contingent considerations.////// So they paid 4.744p a share (£4.4m divided by 92,743,775).

[the guardian] 13/7/2018 09:34

I have now read the RNS several times and overall, it looks like the company will have a very great future. The purchase has definitely been made using shares only.

1. Note that:
The SPA is subject to certain regulatory, joint venture partner and third-party approvals. Completion of the transaction is expected in Q4 2018.

2. The bit I can't understand is how we can own 100% of Innis Trinity :

The Company is aware Predator Oil & Gas Limited ("Predator") is party to a farm-in into the Innis Trinity field, owned by FRAM Exploration (Trinidad) Ltd ("FRAM") and ultimately owned by Steeldrum. That farm-in is unaffected by today's announcement.

The IPSC is subject to an existing farmout agreement with Predator, who are expected to fulfil at least 2 of the Minimum Work Obligation ("MWO") wells and progress a planned EOR Project. The total MWO is 7 wells. As part of the Predator transaction, Predator has the right until mid-2019 to purchase FRAM Exploration Trinidad Ltd ("FRAM"), the Steeldrum group company that is party to the Innis Trinity IPSC. The purchase price for FRAM would be US$4.2m.

Hopefully this will be explained at the AGM.

3. In terms of the acquisition, note that:

For the financial year ended 31 December 2017, the Steeldrum group had US$13.7 million in assets, US$8.36 million in equity, US$5.36 million in liabilities (including a US$1.25 million loan repayable in 2020) and made a gross profit of US$0.83 million and net loss of US$1.96 million (after depreciation charges of US$1.56 million).

Presumably, the net loss was one of the reasons that they were willing to sell.

4. Installed the first custom designed Progressive Cavity Pump ("PCP") in well GY-670 to alleviate the sand production issues preventing continuous production. GY-670 will become a key water injection support target due to its proven oil rate potential which achieved over 1,100 bopd when initially online in 2014.

Looks extremely promising

[12bn] 13/7/2018 09:33

100k seller is still around and we all know I was correct and the culprit was Cerp itself. The seller will have known it was getting millions of shares and so was pre-selling them!

[nexus7] 13/7/2018 09:21

Spain:

In Q2 2018, costs incurred in Spain totalled US$ 0.15 million, including some "tail-end" legacy costs associated with the formal extinction of the La Lora Concession in March and completion of a Collective Dismissal Process ("CDP") under Spanish law affecting 14 employees. Since end Q1, the Company has been seeking to maintain the Ayoluengo oil field on a low-cost care and maintenance basis whilst the commencement of a re-tender process for the award of a new licence is awaited from the Spanish Authorities. The re-tender is now expected to commence in Q3 2018. The Company is now undertaking technical work in preparation for the re-tender and is also in dialogue with another public company who has expressed an interest in bidding for the new licence jointly in partnership with the Company. That company is currently undertaking its own analysis and a decision on whether a joint bid will be attractive for Columbus and that entity will be made during Q3.

[nexus7] 13/7/2018 09:07

From bigmj Today 07:49
-------------------------------------

RE: latest RNS
Very positive RNS with LK doing all the things he said and I hoped for. This isn’t a company who will lead is with false extravagant promises just to get the share price higher so they can do a placing, it’s being run firstly as a good business then secondly as a PLC . Short term share price isn’t of interest to them, it’s all about rewarding LTH

[edgein] 13/7/2018 08:51

There's so much in that RNS but still sounds as if the only drilling activity planned is for SWP or they may also drill more at Cory Moruga field development I guess to prove up that additional 1.1mmbbls of reserves. They seem to have a shut-in well there that will form the first production from that field:

"Cory Moruga is governed by a licence issued by the Ministry of Energy and Energy Industries. The licence is currently with the Ministry for renewal along with a Field Development Plan for approval. The Development Plan is based on the Snowcap Field discovery which was first drilled and tested with the Snowcap-1 exploration well in 2010. Upon Field Development approval, the existing Snowcap-1 will be re-instated as the first development well and further development drilling will follow. During an extended well test in 2015, Snowcap-1 averaged 120 bopd."

So with LK's low cost approach we could be looking at 1000bopd+ (without material acquisitions etc) and about 18mmbbls of 2P not long after from just workovers and reactivation. Within 6 months or so he and the team had Goudron up by 70% and now reasonably stable.

Regards,
Ed.

[nexus7] 13/7/2018 08:27

Columbus Energy Resources PLC Acquisition, New Convertible and Business Update
13/07/2018 7:00am
UK Regulatory (RNS & others)

Columbus Energy (LSE:CERP)
Intraday Stock Chart
Today : Friday 13 July 2018


RNS Number : 5253U

[edgein] 13/7/2018 08:27

Spangle,

Thanks for that, had missed that bit later on. Well access to rig and suitable crew is the benefit that LK is referring to then.

Regards,
Ed.

[spangle93] 13/7/2018 08:22

Edge - I don't think they have acquired rigs, they have priority rights to use them. See page 3

"Steeldrum is also the parent company of Talon Well Services Ltd ("Talon"), which owns a drilling rig, suitable for the Company's planned exploration activities in the South West Peninsula, and a production rig located in Trinidad. The purchase of Talon is not part of the transaction and the parties will separate Talon from the combined entity prior to completion. However, the SPA grants Columbus a first priority use of the two rigs at market rates.