Columbus Energy Resources Share Discussion Threads

[edgein] 27/9/2018 09:57

Well there's gonna be an update on the Bonasse workover and reactivation programme and perhaps the confirmation of drilling of new wells as hinted at in these results to target more shallow undeveloped reserves. We might get a Steeldrum update as it'll have to pass through Petrotrin approvals etc before final completion next Q. Other than that they've multiple assets in their sights as LK discussed the different deal colours that they're working on. Perhaps we'll get one of those completing before y/e. Perhaps some mention of the well communication since the upgrade in water injection rates three months ago. There's lots he could talk about. I'm not expecting the production numbers to be up much this current Q, perhaps averaging closer to 600bopd. Its steeldrum, Snowcap, Bonasse and perhaps a little waterflood Goudron that's likely to push us above 1000bopd. That's all quite nice, but its the material M&A that most of us are here for anyway.

Regards,
Ed.

[offerman] 27/9/2018 09:46

I'm not really sure what else knew they can speak upon the update unless new deal if it's not that it will probably just be a slight increase in BOPD and just a general visual update and speaking about Spain I expect. I don't think there will be that much new at this conjuncture The share price certainly doesn't expect anything new. Leo now says the reaction will kick off on SWP in 18 to 24 months time so that seems to roll out SWP for the time being as I thought it was the middle of next year that the action was going to take place. He is a brilliant leader and he's going to deliver is just going to take longer as so many hic ups along the way which is understandable and expected really. Nothing is that straightforward in this industry

[xippy] 27/9/2018 08:49

Yes Ed, you make some very valid points, I think this half is going to be very interesting and look froward to the presentation on the 10th October. I may not be able to get there but hopefully they'll put a video up like they did for the AGM.

Kindest regards
Xippy (aka Rosco)

[offerman] 27/9/2018 08:30

Agree Carp Most of what was in there was with the first two quarter updates anyway. Hopefully 3rd quarter update will provide an increase in bopd even if small at least it'll be in right direction.Let's see what new techniques and equipment as down to resolve the sand issue . Also any results on WF pilot ?

[edgein] 27/9/2018 08:25

Xippy,

Yeah and the former Lind debt is likely to be paid off this half too. When you see what he's done with the baseline production for the company in the initial period its quite interesting to see what he does with the Steeldrum baseline production. That should be quite easy. Snowcap-1 could materially increase that at low cost. Snowcap-2 even more so as they'll know more about where to perforate as a result of Snowcap-1. Although a development well around SC-1 is optional for the next Q's. Just imagine what the team could do with some redevelopment assets of material size in SA. That's what makes this one stand out a mile and it could come at any time as the discussions have been ongoing many months. On a side note it will be interesting to see how Predator get on with TI over the longer term too.

Regards,
Ed.

[offerman] 27/9/2018 08:20

Good bad and ugly in this 1st H update What I liked though was 1.3 bboip ( they could get far more than 11mbo out of this in time ). Look what happened to RPT share price when they announced more. Also what I like is the TURBIDITE ZONE this isn't included in the 1.3 oipI'm not sure if the turbidite zone is above the feeder zone or part of it but very interesting none the less. "The Goudron Field contains two separate reservoir packages; the shallow Goudron Mayaro Sandstones and the deeper Gros Morne and Cruse equivalent C-sands. During infill drilling in 2014/15 a deeper, interval of turbidite sands was penetrated in GY-670 and GY-678 and this has added an additional, previously unexplored, deep resource for future exploitationColumbus has 11.8 million barrels ("mmbbls") of Proven and Probable Reserves ("2P") in the Goudron Field and is currently producing light sweet oil with an average API gravity of 37 degrees. In addition to its reserve base the Company has significant low risk, onshore upside in the Trinidad portfolio including 22 mmbbls of most-likely ("P50") Contingent Resources ("2C") in the Goudron Field and an estimated gross P50 unrisked oil in place of 1.3 billion barrels in the South West Peninsula leases."

[edgein] 27/9/2018 08:19

Carp,

Well we now know that at the end of the period they now had enough water to get 667 on to continuous injection. Hopefully the pressure will increase there more steadily and may be adding more production throughout the second half towards the end of the year, that was three months ago now. Hopefully he'll let us know what they surrounding wells are doing now when we get the Q3 production numbers in a couple of weeks. Most of the increased production this half likely from Steeldrum, Snowcap and Bonasse though, unless there's a material acquisition in this half year which is likely then to make those numbers and current 2P largely irrelevant. He did hint he'd like to close a $100m deal, probably the gold deal, potentially Colombia or Suriname, most likely Colombia to get that sort of 2P.

Regards,
Ed.

[xippy] 27/9/2018 08:16

Spain will only cost them EUR 15,000 per month, so EUR 90,000 for the 6 months to 31st December. I think that H2 2018 will be looking significantly better than H2 2017. DYOR

[carpadium] 27/9/2018 08:12

Very little we didn't already know about, beware the ever-present doom mongers trying their hardest to cast doubts. Roll on the 10th.

[smoggyg] 27/9/2018 08:00

I expect the mid-Oct RNS will be a lot more positive but group losses are still very high at £2.465m but a lot of those are from Spain. Still losing that amount of cash and only having £1.8m in the bank at the 30th June means the Lind facility is likely to be used soon,imo. (If the group has continued losing cash at the same rate then they will have lost a further £1.2m by the end of this month but I think that loss maybe considerably reduced due to Spain draining less funds now)./////FINANCIAL

-- Revenue for period of GBP3,615,000 (1H 2017 GBP2,460,000), an increase of 47%
-- Gross profit for period was a profit of GBP429,000 (1H 2017 a loss of GBP42,000)
-- Pre-tax group loss for period of GBP2,465,000 (1H 2017 loss of GBP1,964,000), the increase being mainly due to exceptional costs in Spain

-- Cash in hand of GBP1,800,000 at 30 June 2018 (1H 2017 GBP1,684,000)

[edgein] 27/9/2018 07:57

Interesting a continued growth in baseline production Q on Q with revenues up 37% since last year. Can't wait to see how much revenues have increased in H1 '18. Likely to be a even more dramatic rise than this start off period for LK. Still on 1000bopd target for year end which isn't too bad and the material events could come at any time:

"The Company continues to assess M&A opportunities in other countries in South America and the Caribbean which meet its strict investment criteria and active discussions are ongoing."

When he clinches one of these material deals then it'll become very clear why folks are being patient here. Also good to hear that we're almost debt free back in June and on schedule to drill SWP biggie in middle of next year. I wonder what the investor evening is all about on the 10th of October, will it be about steeldrum or something larger. :)

Regards,
Ed.

[dafrog] 27/9/2018 07:54

Looks ok to me. Pity about Spain. I suffer Spanish red tape and bureaucracy and can appreciate how CERP suffer.

[brasso3] 27/9/2018 07:33

I expect those results will mean a down day here.

The net backs are surprisingly small.

I will remain on the sidelines with CERP.

[smoggyg] 27/9/2018 07:15

RNS Number : 0897C

Columbus Energy Resources PLC

27 September 2018

27 September 2018

Columbus Energy Resources Plc

("Columbus", "CERP" or the "Company")

Unaudited Interim Results for 6 month period ending 30 June 2018

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, is pleased to announce its unaudited Interim Results for the 6 month period ending 30 June 2018, extracts of which are set out below and a full copy of which will shortly be made available from the Company's website www.columbus-erp.com.

The Company also confirms that the quarterly Operations and Business Update for Q3 2018 will be reported via RNS on 10 October 2018, followed by a presentation by Columbus' Executive Chairman, Leo Koot, to shareholders and other stakeholders that evening, commencing at 7.00pm at an address in central London to be confirmed soon.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

Enquiries:


Columbus Energy Resources Plc [phone]
Leo Koot / Gordon Stein

Beaumont Cornish Limited [phone]
Nomad
Roland Cornish / Rosalind Hill
Abrahams

VSA Capital [phone]
Broker
Andrew Monk / Andrew Raca

Camarco [phone]
Public and Investor Relations
Georgia Edmonds / James Crothers
/ Billy Clegg


Period Highlights

For the 6 month Period ending 30 June 2018

FINANCIAL

-- Revenue for period of GBP3,615,000 (1H 2017 GBP2,460,000), an increase of 47%
-- Gross profit for period was a profit of GBP429,000 (1H 2017 a loss of GBP42,000)
-- Pre-tax group loss for period of GBP2,465,000 (1H 2017 loss of GBP1,964,000), the increase being mainly due to exceptional costs in Spain

-- Cash in hand of GBP1,800,000 at 30 June 2018 (1H 2017 GBP1,684,000)
-- Averaged realised sales price from Goudron operations in 1H 2018: US$61.17 per barrel, peaking at US$62.35 per barrel in June 2018 (1H 2017: US$46.28 per barrel, peaking at US$49.22 per barrel in January 2017)

-- Special Petroleum Tax ("SPT") has been payable at the end of each quarter throughout the period as the sales price received has exceeded US$50.00 per barrel with payments of GBP242,000 in 1H 2018 being incurred (1H 2017: GBPNil)

-- Costs of meeting ongoing obligations in Spain, including staff redundancy and associated tax costs, of GBP637,000 (1H 2017: GBP320,000). Burn rate in Spain now down to around EUR15,000 per month

-- Lind loan balance reduced to GBP402,000 at 30 June 2018 (GBP995,000 at 30 June 2017)
OPERATIONAL

-- Group oil sales in the period from Trinidad in 1H 2018 were 88,380 barrels net to Columbus (1H 2017: 64,501 barrels), a 37% increase

-- Average production from Trinidad in 1H 2018 was 485 barrels of oil per day ("bopd") with production peaking at 648 bopd in 1H 2018, (1H 2017: 354 bopd)

-- Solid production base, despite a number of technical challenges, delivering steady cashflow and base for future growth:

o Q1 peak production of 627 BOPD with 427-542 bopd delivered month on month

o Q2 peak production of 648 bopd with a steady 530-575 bopd delivered month on month

-- GBP1,030,000 incurred on capex and workover activities during 1H 2018
-- Netback per barrel of US$13.13 achieved in 1H 2018 (1H 2017: US$5.69 per barrel)
-- 7-well reactivation campaign completed during period to increase water capacity for water injection campaign, resulting in capacity reaching 1,500 BWPD in late Q2 2018

-- The approved Goudron Waterflood Pilot "A" commenced in June 2018. Well GY-667 was converted to continuous water injection at end June 2018.

-- The Company passed 465,000 manhours without a Lost Time Incident ("LTI") in June 2018. Total field manhours in 1H 2018 was 80,100, (57,718 manhours in 1H 2017) and the milestone signifies over 37 months since the last LTI.

CORPORATE AND M&A

-- Tony Hawkins joined the Executive Team as part-time Legal and M&A Director on 1 January 2018, taking on the role full-time from 1 March 2018.

-- Three M&A deals announced in 1H 2018:
o Successful SWP re-negotiation on materially improved terms consolidating Columbus's acreage position in an attractive basin which includes multiple mapped prospects, each prospect individually ranging in size from 20-400 mmbbl.

o SPA signed for acquisition of Touchstone Energy's 50% interest in the Icacos field in June, which delivers operatorship for the Company and opportunities to grow production on the field through various well activities

o Significant management focus on delivering Steeldrum acquisition in Q2 2018, following signing of a term sheet with Steeldrum's shareholders in April 2018. Acquisition announced just after period-end and after normal due diligence and documentation processes in Q2 2018.

-- All management have confirmed they will continue to take 50% of their salaries in Company shares in the second year of their employment, calculated at a share price of 5.1 pence per share.

-- No fund-raisings during the period with all activities being funded from available cashflows.
OUTLOOK

-- Columbus continues to undertake an ongoing fully funded programme of activities at Goudron to achieve sustained production growth

-- Completion of the Steeldrum transaction, targeting early Q4
-- Company continuing operational activities with the objective of production from Trinidad exceeding 1,000 bopd by the end of 2018, subject to successful completion of the Steeldrum transaction

-- SWP exploration opportunity continues to progress through a programme of technical work to identify the first drilling location for commencement in mid-2019.

-- The Company continues to assess M&A opportunities in other countries in South America and the Caribbean which meet its strict investment criteria and active discussions are ongoing.

NOTES

All figures are net to CERP unless otherwise stated.

Executive Chairman's Review

The Company entered 2018 having undergone significant managerial, operational and financial changes in the second half of 2017 with production at the Goudron field having peaked at over 550 barrels of oil per day ("bopd") in December 2017 and the Company becoming cashflow positive from operations at that time. This was a material achievement in a short time for the new management team and was the start of a 3-5-year growth strategy designed to manage the Company's risks by spreading investment and revenues across a wider asset-base in Trinidad and elsewhere in South America. The Columbus Board believes that the changes introduced in 2H 2017 provided the Company with a solid platform for growth in 2018 and beyond, with the key objectives for 1H 2018 being as follows:

-- To continue to grow production and resultant cashflow at Goudron through a campaign of well optimisations and the implementation of a series of waterflood pilots

-- To extend Columbus' footprint in Trinidad through M&A activities as a means of:
o reducing the Company's dependence on Goudron as the main (and only) value-driver for the future;

o increasing production and cashflow from other assets under the Company's operational control;

o extending the Company's operations to early and new developments, and;

o securing the potentially transformational low-risk exploration opportunities in the South West Peninsula ("SWP") which had been the subject of many years of negotiations, documentation and costs.

-- To seek to close out legacy issues which could potentially hamper future growth, including addressing issues associated with the Company's Spanish assets, in a cost-effective manner, within the constraints of the legal and regulatory requirements in the relevant jurisdictions.

-- To fund the above activities from cash available at the start of 2018 and arising from ongoing operations in Trinidad.

I believe the Company has made good progress in 1H 2018 in meeting these key objectives, whilst we have continued to face challenges in a number of areas.

On Goudron production, we continued an ongoing programme of wellwork activities during the period resulting in production peaking at 648 bopd and averaging 553 bopd in Q2 2018. These activities, whilst being successful in growing production, resulted in some new challenges in the form of sand-related production problems from certain high oil-rate potential wells leading to a strategy of trialling alternative downhole configurations, including sand filtration technology and custom designed Progressive Cavity Pumps ("PCPs"). We continue to progress our water injection pilot programmes and have increased water availability to support that campaign through a dedicated 7-well drilling campaign to source additional water, resulting in capacity of around 1,500 barrels of water per day ("BWPD") being available at the end of the period. We are hopeful that we will see the results of the extra water availability during 2H 2018 as the water injection pilot programme ramps up.

Sales revenues are up 47% compared to 1H 2017, due to the production growth and an increased oil price but the profits achieved in 1H 2018 were detrimentally affected by the payment of Special Petroleum Tax ("SPT") which applies when the sales oil price exceeded US$50 per barrel, which was the case for the duration of the period.

The Company successfully expanded our footprint in Trinidad in the period with three M&A deals being progressed and announced. The restructuring of the BOLT transaction was a major achievement, especially as it included materially improved terms and provides the Company with long term access to the SWP for oil and gas operations, including the Bonasse oilfield. The Company has been seeking access to the potentially transformational SWP low-risk exploration opportunity for over 5 years and the restructuring now enables the Company to undertake the technical and planning work necessary to allow us to commence drilling in 2H 2019. The SWP includes multiple mapped prospects, each ranging in size from 20-400 million barrels in place. The transaction is a clear fit with the Company's strategy to build a core exploration, appraisal, development and potentially significant production hub in the SWP.

In addition to the exploration potential of the SWP, the BOLT/Bonasse transaction allowed us to start well optimisation and reactivation activities on the Bonasse oilfield. Those optimisation and reactivation operations will continue during 2018/2019.

The acquisition of Touchstone/Primera's 50% stake (and operatorship) in the Icacos field provides the Company with a dominant position in the SWP and will allow us to commence another campaign to increase production on that field once the necessary operational changes have been completed.

Another major activity in 1H 2018 for the leadership team was identifying, negotiating the terms of and announcing the acquisition of Steeldrum Oil Company Inc ("Steeldrum") just after the period end (13 July 2018). Subject to completion and Petrotrin approval, this acquisition, which will initially add a further 250 bopd to our daily production volumes, further expands our footprint in Trinidad and I believe that the combined Columbus/Steeldrum portfolio provides a robust platform for stable production, which is essential for the Company to progress and grow. The Columbus/Steeldrum group will have six production/development assets to optimise and grow production from. This will de-risk the Company's reliance on Goudron for both future production and cashflow growth. The Steeldrum transaction was the main focus of M&A activities by Columbus management in Q2 2018 and we will be actively working with Steeldrum management to integrate the Steeldrum staff into Columbus in Q4 2018 and we shall be looking for early "quick-wins" in production growth once the transaction has completed (hopefully in early Q4 2018).

On legacy issues, the main outstanding issue relates to our ongoing obligations relating to our Spanish subsidiary. This has been a continual source of frustration for the leadership team given the slow pace that the Spanish authorities have moved at to progress the formal extinction of the La Lora Concession and, subsequently, to prepare for the issue of a new tender for the licence. As a result, the Company had to make the difficult decision to make 14 staff redundant in Q1 2018 and we have taken all actions possible to reduce our burn-rate in Spain to around EUR15,000 per month, mainly to meet our ongoing "care and maintenance obligations" at the suspended Ayoluengo Field. The Company incurred costs in Spain of approximately GBP637,000 in 1H 2018 and it is estimated that by the end of 2018, the Company will have incurred costs of approximately GBP1.5 million on meeting its obligations and ongoing responsibilities in Spain since the Concession was suspended in late January 2018. Whilst these costs were required under Spanish legal and regulatory requirements, Columbus management would have preferred to have utilised these funds on more value-adding activities in Spain or in Trinidad. It is understood that the re-tender will commence in Q4 2018, although this is not guaranteed. The delays by the Spanish authorities continue to be a source of huge frustration for the Columbus Board and management.

Outside of Spain, the Company has been required to make significant contributions to an abandonment fund (approximately GBP465,000) and related security (approximately GBP105,000) for the Goudron field.

All of our activities in 1H 2018 were funded from sales revenues or cash available to the Group with no fund-raising being undertaken. We also reduced our debt to Lind during the period, making all monthly repayments in cash, with the amount outstanding at period-end amounting to GBP402,000.

Finally, I would like to thank our staff across the Group for their support and activities during this period. Our staff numbers have grown during the period, especially in our Trinidad operations with the addition of specialists in petroleum engineering and HSE. This is part of a continuing programme to improve our operational capabilities and ensure we are ready for the opportunities and challenges which will arise when we integrate our organisation with our new colleagues at Steeldrum, once the acquisition has been completed.

Trinidad & Tobago

Strategically the Company remains focussed on Trinidad, which represents the majority of near-term activity and significant long-term growth potential, both within existing assets and in additional assets acquired through third-party arrangements or directly from the Trinidad and Tobago government. During the period, the Company held interests in three producing fields; Goudron, Icacos and Bonasse. Just after the period-end, the Company announced the acquisition of Steeldrum Oil Company Inc which will expand Columbus' operational assets in Trinidad to six assets, with the addition of the producing Trinity-Innis and South Erin Fields and the Snowcap Field discovery in the Cory Moruga Licence.

Goudron

Background:

Columbus ERP owns the rights to the Goudron Field, by way of an Incremental Production Service Contract ("IPSC"), through its wholly owned subsidiary, Goudron E&P Limited ("GEPL"). The Goudron Field lies in the Eastern Fields Area in south eastern onshore Trinidad. Under the terms of the IPSC the Company acts as a service contractor to the Petroleum Company of Trinidad & Tobago ("Petrotrin") who reimburse Columbus on the basis of the oil sales and oil price.

The Goudron Field contains two separate reservoir packages; the shallow Goudron Mayaro Sandstones and the deeper Gros Morne and Cruse equivalent C-sands. During infill drilling in 2014/15 a deeper, interval of turbidite sands was penetrated in GY-670 and GY-678 and this has added an additional, previously unexplored, deep resource for future exploitation.

Columbus has 11.8 million barrels ("mmbbls") of Proven and Probable Reserves ("2P") in the Goudron Field and is currently producing light sweet oil with an average API gravity of 37 degrees. In addition to its reserve base the Company has significant low risk, onshore upside in the Trinidad portfolio including 22 mmbbls of most-likely ("P50") Contingent Resources ("2C") in the Goudron Field and an estimated gross P50 unrisked oil in place of 1.3 billion barrels in the South West Peninsula leases.

1H 2018 Operations:

In 1H 2018, the Company continued to implement a programme of Goudron Field production optimisation wellwork aimed at low cost oil production gains, increasing produced water availability for injection pilots, whilst simultaneously growing the field operations crew capabilities in a cost-efficient manner. This was accompanied by the implementation of operational, facility and process improvements designed to improve production, water injection capabilities and operational uptime performance:

-- The Goudron Field crew was reorganised into three functional operations: (a) Goudron Baseline Protection; (b) Well Interventions; and (c) Water Injection teams.

-- Core staffing was strengthened through integrating key contract personnel such as the sales Battery Station Operators into the core Baseline Protection Team and additional recruitment into the Water Injection team.

-- The wellwork programme focussed on low cost existing well optimisation with the successful Q4 2017 campaign continuing into 1H 2018. This programme has the added benefits of establishing well integrity ahead of planned water injection pilot operations. All Goudron Field wells are targets for such activities and 27 individual workovers have been conducted with 19 successful in increasing oil rates in 1H 2018.

-- The well-optimisation programme resulted in some successful oil increment wells responding with problems related to increased sand production which the conventional rod pumps were not designed to handle efficiently. Resolving solids management in successful well stimulations represented the main technical challenge to the Goudron Field 2018 incremental production initiative. The Company recruited additional Petroleum Engineering expertise in Trinidad in 1H 2018 and worked with artificial lift and sand control suppliers to develop effective solutions to improve post well intervention sand clean-up. In Q2 2018 the Company 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.

-- The Company also installed the first batch of long stroke length pump jacks on key high pump submergence wells in June 2018 which will both allow higher individual well production rates and reduce wellbore sand-face stresses that can contribute to sand production.

-- The wellwork programme also targeted the re-start of previously shut-in wells to increase oil and produced water availability. A 7 well re-activation programme was completed in Q1 2018 which was successful in increasing field produced water capacity from 800 BWPD to a field rate of over 1,500 BWPD to support the water injection pilot campaign.

-- Field facilities improvements continue including the installation of an additional back-up electrical generator which now allows 100% coverage of Goudron production wells during the frequent external power outages. Additional in-field flow-lines using reclaimed production tubing were also installed to distribute water for the injection and well stimulation programmes. These practical, low-cost solutions were aimed at improving production uptime, enhancing water injection pilot operational efficiency and reducing incremental wellwork costs.

Solid production base delivering cash flow:

In January 2018, the Company undertook a testing phase to allow for a better understanding of the reservoir ahead of full water injection pilot work and to plan for an increase in incremental production. Due to wells being taken offline for injection trials and monitoring, there was a period of lower production compared to the Company's "Base Case" target.

In 1H 2018 the Company has continued to perform low cost well stimulation and well re-activation work which has stabilised production. The stimulation work has also brought about new technical challenges which need to be overcome in order to unlock the full benefit of this capacity. In Q2 2018, high oil-rate potential wells tended to exhibit sand-related production problems leading to a strategy of trialling alternative downhole configurations, including sand filtration technology, and custom designed PCPs.

Production in 1H 2018 was as follows:

-- January oil production: average of 427 bopd
-- February oil production: average of 541 bopd
-- March oil production: average of 542 bopd
-- April oil production: average of 574 bopd
-- May oil production: average of 532 bopd
-- June oil production: average of 553 bopd
-- Peak daily production rate during period: 648 bopd
-- Total Goudron sales in 1H 2018: 87,661 barrels
The Company notes that it has established a solid, production base that is operationally cash flow positive. This allows the Company to maintain its capital base and reinvest cashflow profits to grow the business. Whilst some production challenges remain, including sand control, the Goudron field (with 2P reserves of 11.8 mmbbl) provides a robust platform for future growth through either the SWP assets and/or M&A activity.

Goudron Waterflood Pilot Campaign:

The approved Goudron Waterflood Pilot "A" commenced in June 2018, following a period of trial injection and interference testing in other areas of the field in 1H 2018. This initial waterflood pilot is designed to establish pressure support to "C" Sand wells GY-665 and GY-664, both of which proved capable of oil production rates of greater than 300 BOPD at original pressures when drilled in 2014. The approved pilot allows water injection into nearby "C" sand wells GY-667, GY-668 and GY-209.

Well GY-667 was converted to continuous water injection at end June 2018. The well is now the main focus of produced water injection and has been averaging injection of 600 BWPD and achieved peak daily water injection rates of up to 960 BWPD, which is significantly higher than anticipated and allows potentially accelerated response times. The offset production wells are being monitored daily for communication responses to this water injection.

The Goudron well reactivation programme carried out in 1Q 2018 resulted in the successful addition of available produced water volumes from 800 BWPD to over 1,500 BWPD. This additional produced water is available for planned injection expansion both in the Waterflood Pilot "A" area and also in later planned pilots in the shallower Mayaro sands. This additional produced water capacity is being managed according to the water injection requirements of GY-667.

Water injectivity trials have been completed in over 40 wells in the Goudron Mayaro sandstone as well as another 10 wells in the "C" Sand. This successful injectivity testing has established well mechanical integrity and also delivered water injectivity rates and pressures that can now be applied to future injection pilot plans.

Daily injection of available water has been achieved using the newly commissioned produced water re-injection facilities with offset production well monitoring through downhole memory gauges and active Echometer based fluid level monitoring.

GY-669 short-term injectivity trials were discontinued in January after pressure monitoring results indicated limited connectivity with offset C sand production point GY-670. Support for GY-670 which when initially completed in December 2014 delivered 1,100 BOPD, remains a high potential injection pilot target Responses at GY-670 are being monitored daily as this "C" sand production well may also have a reservoir communication path to wells targeted for Waterflood Pilot "A" injection.

The Company has established that water injectivity is sustainable in the wells tested at the rates required for pilot responses to be achieved in reasonable time frames. The simple produced water re-injection facilities are in constant use and capable of being scaled up to higher rates. Further increments on produced water availability are being studied to allow multiple simultaneous pilot activities to be planned with faster response times.

The Company is continuing with water injection on a daily basis and is constantly reviewing the effect on production and where water injection can best be deployed to increase production.

Icacos

The Icacos field is located in the extreme southwest of Trinidad. The field was producing at around 34 bopd in 2011 and has steadily declined to around 22 bopd in 2017, mainly through natural decline. Production throughout 2017 and in 1H 2018 was consistently around this volume and there have been limited new work programme activities during this period to increase production. The Icacos field currently consists of six wells, with three on production.

The Company has held a 50% non-operated interest in the Icacos Field, via its subsidiary Leni Trinidad Limited ("LTL"), for a number of years. The other joint venture partner is Touchstone Exploration Inc ("Touchstone"), via its subsidiary Primera Oil and Gas Limited ("Primera") who holds a 50% interest and is Operator.

In April 2018, the Company and Touchstone announced that they had agreed, in principle, for LTL to acquire Primera's 50% interest in the Icacos field. In late June 2018, the Company further announced that LTL and Primera had signed a sale and purchase agreement ("Icacos SPA") and, subject to certain regulatory approvals and completion of the transaction, LTL will be the 100% owner of the Icacos field and Operator, with the effective date of the transaction being 1 April 2018.

The consideration for the transaction is USD$500,000 (the "Minimum Payment") for Primera's current net 11 bopd. However, LTL will not pay any upfront consideration for the purchase but will pay the consideration over time until 1 January 2021 through Primera receiving the net revenue it would have received had it retained its interest. Primera will also receive, in the event of increased production, 25% of any net revenue above the current baseline. Should these cumulative payments not exceed the Minimum Payment, LTL will pay the difference between the amount received and the Minimum Payment. LTL shall be entitled to 100% of all revenue from Icacos from 1 January 2021.

Columbus plans to undertake analysis of the potential for a well reactivation programme in 2H 2018 and undertake well stimulation and other well activities to increase production. The Company will also look at additional infill wells in due course.

The Company viewed this transaction as another step in its strategy to build a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad.

South West Peninsula

In March 2018, the Company announced that it had successfully restructured the BOLT transaction, on materially improved terms, which provides Columbus with a lease of up to 28 years for a large area (approximately 8,700 acres) in the SWP and 100% operational control over the opportunities. The Company is confident that the SWP, which contains multiple mapped prospects each prospect ranging in size from 20-400 mmbbls, has the potential to deliver transformational growth over the next 18 to 24 months.

Background:

In early 2017, Lenigas Trinidad Limited ("LTL"), a wholly-owned subsidiary of the Company, signed a Sale and Purchase Agreement (the "BOLT SPA") with BOLT to acquire the entire shareholding in BOLT and thereby place the operatorship of the leases held by BOLT in the SWP in LTL's hands. The SWP is an area of underexplored land in the south -west tip of Trinidad adjacent in the highly prolific East Venezuelan Basin with contiguous hydrocarbon geology to that found in nearby Venezuela. This was another in a series of agreements with BOLT in a commercial process which was first announced by the Company in 2013. As discussions with various parties had not been completed, LTL delayed the completion of the acquisition of BOLT and as a result the longstop date in the BOLT SPA, of 30 April 2017, was mutually waived by the parties.

After the appointment of new leadership in mid-2017, the Company engaged the services of Tony Hawkins in Q3 2017 to help re-negotiate the terms of the BOLT SPA and close out other outstanding matters relating to the transaction.

New SWP Transaction:

In March 2018, the Company announced that it had successfully restructured the BOLT transaction, on materially improved terms (the "Transaction") and had entered into an Agreement for Lease with Singh's (Cedros) Estates Limited ("Singh Estates") to gain long term access to the South West Peninsula for oil and gas operations, including the Bonasse oilfield. The transaction is a clear fit with the Company's strategy to build a core exploration, appraisal, development and potentially significant production hub in the SWP.

A summary of the

[droftarts] 25/9/2018 18:38

East Devon

[offerman] 25/9/2018 18:28

Dro,Where abouts in the West Country are you ?

[nexus7] 25/9/2018 17:19

From Rugby2015 Today 15:48
-------------------------------------

Keep the faith

We have waited for a rerate for some time but IMO it will only happen when the numbers, the outlook and therefore the sentiment are bright.
We may not have long to wait.
Production is rising but we will have to wait and see how high that is and WTI is volatile but right now it’s riding high and the short term outlook from the experts seems to think it will remain that way.
IMO Steeldrum will prove to be a profitable asset and Goudron was always a cash cow and not transformational on its own.
Goudron might not develop and increase production as much as we thought but that will be because it is more profitable to develop elsewhere so who can argue with that.
A share price of 4p is disappointing especially when we hit 8p last October but when the rerate comes IMO we won’t retreat back to these low figures ever again. Looking forward to Xmas already and drilling in SWP later next year.

[droftarts] 25/9/2018 17:17

Yes , I will go, I went to the AGM and was impressed. I just need to know the details and time, just in case I have to miss the last train to the West country and need to book an hotel
Droft

[offerman] 25/9/2018 15:26

Anyone here thinking of going to the update presentation Central London .

[offerman] 25/9/2018 15:08

Hi HillyI am ever the optimist as well but I really don't expect too much change during this next update as its the update after that where the transformational process should start. I don't expect too much change to the share price or bopd to year end But after that hopefully things will tick up and then the anticipation for SWP

[hilly_71] 25/9/2018 11:24

Ever the optimist, but I'm feeling pretty relaxed/confident that the slight wait will be worth it.

I like the sound of the evening presentation/Q&A on the 10th Oct - clearly something the directors are excited about and want to share with shareholders.

GLA

[jcgswims] 25/9/2018 11:15

CERP tweets

Columbus ERP‏ @Columbus_ERP · 2m2 minutes ago
#CERP will be releasing its quarterly update on the 10th October when there will also be an evening shareholder presentation and Q&A session in central London, venue to be confirmed

Columbus ERP‏ @Columbus_ERP · 2m2 minutes ago
We will be announcing our #InterimResults this week for the six months ended 30th June 2018 #CERP

[nexus7] 25/9/2018 10:37

$100 Oil Is A Distinct Possibility

An oil price spike is starting to look increasingly possible, with a rerun of 2008 not entirely out of the question, according to a new report.

The outages from Iran are worse than most analysts expected, and bottlenecks in the U.S. shale patch could prevent non-OPEC supply from plugging the gap. To top it off, new regulations from the International Maritime Organization set to take effect in 2020 could significantly tighten supplies...

[the guardian] 25/9/2018 09:59

The large spread conveniently accommodates both buys and sells into the lower half so that the buys appear to be sells.