Columbus Energy Resources Share Discussion Threads

[edgein] 11/10/2018 08:44

The guardian,

This is market sentiment related to the storm in a teacup that's going on at the moment. I've upwards of 100 companies on my watchlist and only a handful aren't red today. CERP is down on a few hundred K volume. Market makers making the most of it, some were falling without a single trade.

Regards,
Ed.

[the guardian] 11/10/2018 08:27

The quarterly update has gone down well!

[nexus7] 10/10/2018 23:30

From Vmax oday 18:33
-------------------------------------

LIND
TRoss knew that loan facility would be used for a very simple reason as no one , not you , me or any company takes out a loan facility if they don't need it! its that simple and on AIM its a given. It was always going to be used.

I am not against it as no business can grow without expenditure , you cant just magically up production and buy other fields and do maintenance without spending.
LK is going about it the correct way, yes he added Steeldrum production figures into group production but he never did anything wrong as that is the said group.
The BIG problem that I have is the quarterly updates that have no place in AIM.
Say we drill a well in SWP and it comes on line @ 4000 bopd that would be tremendous and even more so if stated in a RNS, however the share price would rise and then fall yet again if we had to wait another 3 months to find out what the stable flow rate was, and if there was sand or water or any problems. This is what NR did and look what happened. I just fail to see how the share price can be maintained at quarterly updates. LK is new to AIM , although I do rate him , he has made mistakes . At the start of his leadership he was asked if the 50000 barrel tank was there and he said YES to one of the bigs. I then had a conversation with one of the bigs , BigMJ , I think it was where I told him that this is not the case, he asked LK this at his next meeting with him which confirmed that no such tank existed.

To give LK his due he was under the weather and just weeks into the job, but he should have known better than just to say YES.
So all in all, he is doing a fine job at the minute and is only doing what any MD should do and that is to make it all look rosy .

I can see the foundations being built here and quite happy to stay put. If there are more acquisitions on the cards then don't expect SWP next year either. And that's still not a bad thing as CERP is getting larger by the day.

Saying all that , I would like SWP ASAP lol, just me as that's the main reason that I am here.

[xippy] 10/10/2018 21:40

Any further details from the meeting this evening?

[jcgswims] 10/10/2018 15:37

Malcys blog

Columbus Energy Resources

I have a great deal of time for Leo and Gordon but reading the CERP update today I was reminded that brevity is not one of their strong points. Trying to fish out the salient points of a long old statement made me wish that they had delivered two reports but I know that they do it with the best of intentions and there is much work still to be done.

What I picked out was that Q3 production was 735 b/d with a peak of 879 b/d and with the recent Steeldrum acquisition the 1/- b/d target for the year end is still on track. This makes them cash flow positive from operations and with a cash balance of $1.97m and further cost savings from downscaling of the London office again showing admirable discipline.

The fact that such a good management team has found so many skeletons is of no great surprise but it does delay the progress so clearly desired by messrs Koot and Stein. They talk about continuing to work on ‘new acquisition opportunities’ in Trinidad and South America and being ‘accretive to shareholders’ but for the time being this scaling up of the business looks some way off in the absence of a major injection of capital. Having said that, with the battles mainly behind them and a solid production base and lessons learned, buying the shares at below 4p and a market cap of only £25m does give scope to follow a pedigree team in an exciting post code…….

[edgein] 10/10/2018 13:51

Mike,

Absolutely, things are red at present for sure. Specifically on CERP I guess some were hoping for some last minute M&A as LK likes his surprise last minute deals like SD at the previous quarterly. So that I guess caused a small number of speculators to move on. Yes the wider market has worries over Italy and causing widespread weakness. As you say its all happened before and much worse, banking crisis, recession, oil crisis (shale over-production), Ireland and Spain about to fall over, then Greece and talk of the Eurozone collapse, Italy in comparison looks like small beer. Another storm in a teacup. Brexit ontop of this is making things a little weaker too, but it'll all blow over like the more serious issues that went before.

Regards,
Ed.

[greatfull dead] 10/10/2018 13:18

WLFE, That is a blast from the past, yeah, and a stark reminder too.

ATB,
GD

[toploadermike] 10/10/2018 12:55

Absolutely Ed but a stark reminder of why to be careful and do your research, look at WLFE, just announced, was active trading but due to finance funding just went into admin.

[edgar222] 10/10/2018 12:41

Incredible market just now. Not just in Cerp. Wish I had more cash!!

[toploadermike] 10/10/2018 12:36

Ed, I just love these and my own opinion on these and to why the price hasn't jumped up today is because of the concerns raised a couple of days ago about the bond yields and the Italian financial situation and I feel the worries are a wider issue but naturally have a negative impact on the markets, I've seen all these issues before in the past and it's never put me off investing, it's always made me sharper in my investments with the addition of being more cautious. So naturally I'm going to do a little additional research on these as I now have a fair few but would like to substantially increase my holding. A relation of mine owns multiple large businesses across Asia and Mining, O&G, Chemicals are but a few of them, so I might be able to get the "sentiment" on these from the industry itself as that would be a great + and would make me even surer "if that's possible" about these before I buy in bulk. I'm not going to be posting much until I get some feedback but I'll let you know what I find if I get any "sentiment feedback" :)

Good luck Ed.

Br
TL

[edgein] 10/10/2018 12:12

Mike,

Agreed fella its a healthy mix of low cost opportunities from free cash flow with the added upside of M&A and the near term big transformative exploration that LK describe as low risk. 750bopd and within grasp of 1000bopd in the next few months is the strongest position the company has been in for a long time. It'll be interesting to see what they can achieve from these multiple fields before they spud SWP. Icacos coming very soon now too.

Regards,
Ed.

[toploadermike] 10/10/2018 12:05

What I like and what I can easily image happening next year is on their website as below:

Company interpretations includes mapped multiple prospects of 20-400 million barrels in place and due to the fact wells can be drilled onshore, the costs per well will be significantly lower than equivalent depth wells offshore. It is anticipated that between 2-3 wells, targeting the shallower prospects, may be drilled on the licences initially at costs of around US$2-4 million per well, including wells targeting multiple stacked prospects, with the first well potentially being drilled, subject to satisfactory technical analysis, in the first half of 2019

[toploadermike] 10/10/2018 11:05

Topped up twice today already, still watching for another opportunity to do the same.

[nash81] 10/10/2018 10:50

Wish I could be adding more. Our assets is strong and rns today is not negative that warrants 7%drop. Maybe others will do top up too.

[smoggyg] 10/10/2018 09:46

Fair point edgar,I thought that you were under the impression that Cerp were already profitable when they aren't yet. RNSs do tend to paint a rosy picture and gloss over the bad points sometimes. I don't see the 6 monthly losses as a long term problem if Cerp can get production up a lot and some of them like Spain and well closures are 'one offs'. Cerp are likely to use the Lind facility to fund any short term cash flow problems any way.

[edgar222] 10/10/2018 09:37

SmoggyI was not saying they were in profit (as opposed to cashflow positive).My "riches" were the assets.

[toploadermike] 10/10/2018 09:16

Just topped up :)cant wait to see EOY results!!

[offerman] 10/10/2018 09:07

Welcome ToploadMike.

[toploadermike] 10/10/2018 08:45

Ed, I totally agree with you on this and to me this is an excellent bit of news to the market, I have recently retired from a 9 year director role from a company with assets in excess of £900M and this type of business management to me looks really good, it's too easy to draw down even where not necessary, and it looks like they have their finances in control which is just so important! The fact they have taken on the additional assets from SD is great as the resources are there to be taken and this looks really good to me. I will be getting a load more of these ASAP, will let the day traders off load this morning and topup later today. :)

Br
TL

[offerman] 10/10/2018 08:41

I see Goudron has been a great learning curve for them and by reducing these wells will mean they have inherited angood knowledge base in order to move on with reactivations ealsewhere with probably less issues with sand as experienced at Goudron . I also believe it's not best to persist and struggle on with Goudron when it clearly isn't working as Initially thought as per webcast 2017 showing Goudron spectacular well graphs. This time round they will know what tehiniques to use from the off then tweak along the way.I like the fact they can diverse. Something doesn't work stop move on build , as opposed to persist weaken dilute. As you say it will be interesting to see the results on these .

[offerman] 10/10/2018 08:36

Morning EdI was going to post about that too with regard to the 3D.I think that's a very good thing to pinpoint and have a more crisp idea of location to drill. A very good move indeed got maximum results .

[edgein] 10/10/2018 08:27

Offer,

It sure does with a close attention to detail on not only the bread and butter stuff, but also on the very large expo targets too. We might get the odd infill drill for quick wins on TI and SC from the looks of it too. SC-1 had spectacular early flow rates if they could get similar for a month or two from SC-2 it would make a difference, they'll probably have a better idea of how to manage production from SC-1. Controlling the water influx etc. Good to see a stronger base emerge as we approach the key events of further material M&A and the SWP. If they manage to get to 1000bopd+ by year end I'd be quite happy.

Regards,
Ed.

[smoggyg] 10/10/2018 08:25

edgar22210 Oct '18 - 08:05 - 5835 of 5837
0 3 0
Offerman

Certainly I agree with drilling deeper at Goudron.

The Company almost has an embarrassment of riches and choices now and is going to have to prioritise and manage them all. Very happy that this management can do that in their sleep.

If waterflood works as it appears to be it could be the game changer/////// Not true edgar,Cerp are still a loss maker,having reported a group loss of £2.45m for 6 months in the last results RNS. You have to look at the wording in todays RNS where 'operational' is mentioned a few times,that is worded deliberately to give the impression of a profitable company which Cerp is not yet. On the bright side the selling today is probably only traders 'buying the rumour and selling the news' and so nothing to worry about.

[edgein] 10/10/2018 08:22

Interesting, with the detail provided in that production update it shows how professional these guys are at what they do. LK still intent on bang for his buck and the integrated business peaked at almost 900bopd in this Q when the deal took place. I wonder what the Q4 average will be when they tie in SC-1. Good to hear that production is expected to exceed 1000bopd by year end, should be a busy final Q as they fund this work from ongoing cash flow. Also interesting that there were several one off's in there including completion costs for Steeldrum and Bonasse licence areas. He really is being very careful to nail down the seismic for the targets beneath Bonasse, not a lot of onshore companies go for 3D seismic for onshore, most just use their historic 2D. But LK and team are going further to get this processed further to really nail down those targets. I hope they put some of these screen shots into a presentation ahead of SWP drilling.

Regards,
Ed.