Columbus Energy Resources Share Discussion Threads

[the guardian] 20/7/2018 12:30

Northpole, I won't dampen your enthusiasm any further. Good luck.

[northpole2] 20/7/2018 12:27

Guardian, LK has previously stated that BP have shown an interest in the SWP and NR said likewise. They are active and operating in the area and any development of scale would almost certainly be of interest to them. BHP, Exxon and others have also had real exploration success in the recent past in the area but are all operating offshore, the SWP is onshore which is why Columbus have managed to get it (in a great deal). But the potential volumes available from the SWP will certainly be of interest to a major, upon exploration success by CERP, who are all desperate to fill their reserve coffers after 3-4 years of under-investment. It is a fact that there would be a 7% decline every year across the world in oil production without any new investment in new activity/fields. The majors therefore need to run fast to stand-still. Remember Columbus has noted prospective resources of between 20-400 million barrels for 12 separate prospects in the SWP EACH. Any volumes in excess of 50m barrels discovered would definitely attract the majors, independents and many others. CERP is simply playing a good game of planning to take on the first wells step by step using its own cash resources and, if they achieve success, the majors will then be there. That coming from someone who works in this industry. LK won't want any deals with the majors yet, far too early for that and you'd be giving too much away too early. NR said likewise.
Upon success, there would be a queue of interested parties forming. That would be a nice place for Columbus to be as they can decide how to play things in so many ways then (go it alone and develop, farmdown, sell out all or part of the licence).

[the guardian] 20/7/2018 11:51

Northpole, it's nice to see people on here still being positive but don't get carried away. "any development could be brought onstream relatively quickly and the majors would be all over CERP before that like a rash.

Majors don't be into small fields. If they wanted the SWP, they have had plenty of time to negotiate an acquisition.

[northpole2] 20/7/2018 11:16

REVERSE TIMBERRRRRRRRRRRRrrrrrrrrrr

[northpole2] 20/7/2018 11:15

If there is a discovery in the SWP, there probably won't be a need for water-support. It will in all probability be a normal development with support from pumps or the like (ESPs). The fields in the North Sea Taqa were managing are long-life assets, had already been producing for 20-30 years and needed late-life pressure support. Hence the waterflood at 400k barrels a day. This simply won't be required on a new SWP development which can be drilled from onshore, cutting development drilling costs substantially (by up to 5x cheaper than offshore). Facility costs won't be excessive either, any development could be brought onstream relatively quickly and the majors would be all over CERP before that like a rash. Nice problem! Waterflood will help the very shallow onshore fields Columbus have which need pressure support given the depth (lack of pressure) and because some wells have been producing for 20+ years.

[edgein] 20/7/2018 10:36

Wooooaaah hold up there fella. We're not talking Forest or Cruz reservoirs. The SWP is about Herrera. I don't have time to check back but someone I think it was Granheim recently posted the flow rates of Snowcap-1. Something like 500bopd and 4mmcfd of gas back in 2010 from Herrera hanging wall or some such. You'll find that the Herrera will be like Vene or the offhsore T&T wells and is unlikely to need pressure support for years as it'll like have a reasonable GOR and natural drive. Especially wells at 10,000ft+. Also I hope you noticed from the seismic that the target to the North of Bonasse (LK said that was a N-S line running through Bonasse) isn't that much deeper the one that slopes quite sharply. They could reach that pinching out part of the reservoir without too much deepening, probably less than 5000ft. No wonder LK and their geologist wanted that slide in there. When you're talking $2-4m per well, the shallower wells will be towards the $2m end of the range. Not as large as the big target on that seismic line but could make a meaningful addition to production at low cost, if successful.

Regards,
Ed.

[nexus7] 20/7/2018 10:00

fFrom petersalkeld Thu 22:36
-------------------------------------

Any Thoughts?

I have been trying to analyse the intended SWP drilling campaign which I believe is due to begin in 2019

In the LSE Malcy evening, Leo said that from his previous experience in the North Sea, it took 400,000 bareels of water per day to produce 60,000 bopd

If we were fortunate to strike a rich seam capable of producing 50,000 bopd, that would mean injecting in a parallel well around 333.000 barrels of water per day.

This would have to come from the sea.


This poses environmental problems - the government would have to agree.

It would need a pipeline to carry the water.

What infrastructure exists to cope with 50,000 bopd - does that need a new pipeline?

It sounds expensive to me - not just 3/4 million for the rig.

[arrynillson] 20/7/2018 08:30

12bn - once again you demonstrate you are so thick that understanding filtering is beyond you - hint - don't peek at filtered posters and reply to them!

I see you have thrown your toys out of the pram over on your KOD thread about a poster doing to you what you do here on CERP - one day you will get the message!

[12bn] 20/7/2018 08:07

08:04:08 4.5000 311,556 O 4.5000 4.6000 Sell 0 311,556////// I forecast that 4.50p bid will go soon,yours mystic 12bn.

[12bn] 20/7/2018 07:57

Nothing much likely to happen here for months,I am tempted not to post here but I know that arry loves my input here and I wouldn't want to let him down. :)

[offerman] 19/7/2018 18:37

Thanks Arry. I madeMistake before doing the same with other companies but finally I really feel this one is the best. I really appreciate their honesty about good bad ugly. That's kind of you :-) Funnily enough I had a reply from Leo in acknowledgment of my email I sent . He is currently straight back out in the field working hard ( hence he had to rearrange his speech to speak first to catch a revised flight time back , but the email was forwarded to him and message sent back to my surprise. Really nice guy and look forward to attending one of the media's one day meeting them. I really wanted to attend the AGM but was unable to make it for distance and had some work to do too.

[arrynillson] 19/7/2018 17:08

Offerman - I'm glad you enjoyed the medias - as you know I do worry a bit about your investments being so concentrated on CERP and i won't change my mind on that but LK is obviously bothered too so he's kindly decided to spread the risk a bit for you!

[edgein] 19/7/2018 17:03

Leo likes the camera that's for sure, looking froward to see what Predator does with the CO2 injection, could be useful as hybrid injection on Goudron. If they then want to buy TI for $4.2m I don't think anyone will argue about pushing ahead with the SWP drilling. :)

Regards,
Ed.

[offerman] 19/7/2018 14:55

I actually feel very very positive after watching those two videosI have done right from when he took over but of course with the lack of updates naturally you start to feel the what ifs little bit. So I'm also learning with the company as previous silences were always really bad news with other companies I was involved in.I have learnt that with this outfit these guys really do say what's on the tinI loved it when he started showing the south-west of tea and tea only showed Goudron Then as they started to show what they've taken over already it was like watching a game of risk ( excellent going by the way if anyone doesn't it ) That Leo is spreading his armies slowly and surely in strength. Actually taking over the south-west map. But I also found really intriguing and interesting was the areas adjacent in the central belt of the south-west some huge massive areas that on as yet in what looks like no mans land as he said the government are trying to sort out who the areas currently belong toThose areas look huge. There was one small area in the south of the map that actually links onto one that steeldrumb owned so exploration there that's bolted on as such.If we can get our fingers into those Nomansland areas could be very interesting indeed I can see exactly where he wants to grow it all. And with production expected over 1000 BOPD that will make the authority sit up and take note hopefully more will come out of it for us. And then when we discussed South America that looked equally interesting as the same terrain as Goudron characteristics.

[arrynillson] 19/7/2018 14:44

Offerman - yet another superb performance in the media - interesting to hear him advising us of strategy - we are not Shyte or Bust explorers - we are going to fund explo from cash flow.

These medias are so good I learn a great deal from them quite quickly - it’s a pity that ole 12bn can’t find the time to have a listen - it would save him hours and hours in the long run plus the further embarrassment of not posting shyte continually and having to be corrected!

[offerman] 19/7/2018 13:04

Thanks JCG Just watched the YT link. Leo as good as ever. Really great prospects moving forward .I also note that Leo said a success on one of the drills on SWP is what will turn it into a 500 million company or more. Being that there is a 2 to 4 year plan the share price could actually start rocketing when we drill the first next year. Extremely exciting times ahead I'm not that long considering how long many of us have been waiting in the legacy days of LGO. So this time next year not me but some may become millionaires. And who knows what deals they come up with between now and then.

[offerman] 19/7/2018 12:12

Thanks Arry.I echo all your thoughts and positivity about Leo . I think my only concern was how to finance such a large deal but then they are the experts not me so I will find out in time there skills on that matter. With regard to the rest of the licensee potentials and now expanded acreage I agree it should help alleviate the pressure a little on Goudron 7 main wells. Who knows maybe we will get some more decent ones coming on tap at some point . They still have well over 100 to look at at minimal cost and rejuvenate where they can. Plus also the fact as you said they have cleaner wells that may increase productivity without the worry for sand such as Goudron . Increase production . AlsoExtra water for WF program at Goudron we may yet see results from that come year end or 1st qtr next year. It's all coming togther and so far a sterling job by Leo and team

[jcgswims] 19/7/2018 11:47

Leo from the Investor Evening from 4mins 10secs

[arrynillson] 19/7/2018 11:37

Offerman - I know nothing about any material deal except that I trust LK to craft it in such a way that it will be be accretive to CERP shareholders - nothing I’ve seen from him so far suggests I should have any worries about that. It’s about cake if we give up half the cake in a deal but the cake more than doubles in size that suits me.

My main focus is regular progress for CERP and LK has done well so far to improve performance on Goudron using technology and skill - however I get the impression he now knows that CapEx will almost certainly be better applied elsewhere in short term - doesn’t mean abandoning development there - just a more relaxed programme involving even more water than is currently readily available.

As I mentioned before the AGM media was superb in outlining opportunities and the questions following enabled Us to see the company thinking on matters which I found comforting for the future. I’m trusting this guy to manage money effectively and I like what I see which wasn’t the case before.

BTW I’m sure Rosie will be pleased about the developments in Spain they are now talking to a possible partner for that project - nothing to get too excited about at this time but nevertheless another asset which may be impressively monetised in the future.

Re SWP LK was majorly excited about the quality of the Norwegian Steeldrum rigs - large and small and I expect he will be using them in due course - certainly lots on his plate at the moment!

[nexus7] 19/7/2018 10:29

Why Investors in Oil Companies Don't Care About Crude's Drop

Crude prices are down yet European oil companies are weathering the slump, signaling a change in fortunes for last year’s laggards.

While benchmark Brent crude has fallen more than 9 percent over the past week, the Stoxx Europe 600 Oil & Gas index has retreated just 3.9 percent. The reason? Oil companies’ discipline during the 2014-2016 crash proved to investors they can now easily withstand such crude-price corrections...

[offerman] 19/7/2018 10:26

Arry You seem like a knowledgeable posterQuestion to you, how would you envisage we pay for a material deal? There has to be dilation one way or the other through issuing more shares and options.DebtLoansGiving away a percentage of the company. How can we possibly pay for something larger than SWP which could contain 20to 400 million barrels of oil

[offerman] 19/7/2018 09:52

Thanks ArryAppreciated

[arrynillson] 19/7/2018 09:45

Offerman - I watched the brr media - believe it was at the end as a question from the audience, something like will you be issuing new production guidance - LK replied something like not for a while as it's not as simple as adding all the fields - they now have so many opportunities they have to evaluate where to spend as priority to generate best uplift for company eg Goudron wells need more regular working over to maintain production than is likely with new TI wells which are expected to have minimal sand interference.

These are great ' problems ' to have!