Columbus Energy Resources Share Discussion Threads

[livinginhope] 21/11/2018 16:50

Very pleased to see that the question I emailed to Camarco on 19 Nov (because of problems on the Columbus website at that time)concerning the oil price 'sweet spot' and the SPT calculation has been replicated and answered on the Columbus website today. Also the suggestion I made to them a while ago that new comments should be dated has also been taken on board and implemented. It shows that Columbus & Camarco are listening to shareholders.

[jcgswims] 21/11/2018 15:58

Updated faqs

21/11/2018
Does Columbus Energy need to raise any more money?
• Columbus Energy is operationally cashflow positive and we are funding our ongoing activities in Trinidad from our own available cash resources
• The Company's cash position was announced at US$1.97m at the end of September 2018 in the Q3 update and we have since raised a further £2.5m (gross)
• This was used to fund the following:
o Repay the North Energy Capital AS loan facility in the sum of US$1.25 million (instead of the intended drawdown from the 2018 Lind Facility which was referred to on 10 October 2018 in the Company's Business, Operational and Financial Update);
o Establish and implement a multi-well drilling campaign on the Steeldrum assets and also in the South West Peninsula ("SWP") - driven by value and "best bang for our buck"; and
o Upgrade facilities in the SWP, particularly at Bonasse and Icacos, to speed up oil production growth and sales and also allow for early sales from any exploration success at the SWP in 2019


21/11/2018
Will the 2018 Lind facility be drawn down?
The Company has no other plans to drawdown on the Lind Facility which was put in place as a "financial insurance policy" in mid July 2018 and the facility will actually expire in early January 2019


21/11/2018
How will Columbus finance its acquisitive growth strategy?
The management team has extensive experience of supporting M&A transactions with innovative funding structures, if required, and will look to ensure any new funding undertaken to support any specific transactions will be seen to be accretive by our shareholders.


21/11/2018
I believe that SPT is levied on oil price above $50/barrel. Could the company please give a statement on how the SPT is calculated and what the sweet spot is for profits? For example if the oil price is $49.95 at what price above $60 would profits be the same?

SPT is payable for onshore oilfields in Trinidad at a rate of 18% at the end of each quarter as and when the sales price received during that period exceeded an average price of US$50.00 per barrel. An important factor to note is that the SPT calculation also takes account of allowable capex spent by the producer during that period, with deductions being applied in the SPT calculations accordingly (eg. 20% of capex spent during that quarter can be offset against the SPT amount due and any brought forward offsets from previous quarters can also be applied). This can sometimes mean that no SPT is payable by a company for a quarter if the capex spend offsets are greater than the SPT payments due for that period on sales. This can sometimes lead to a carry forward to the next quarter of "offsets" during periods of high capex payments by a company (eg. during drilling, facility enhancement or water injection campaigns). During periods of high capex spend, SPT may not be payable in cash from one quarter to another.

As for the "sweet spot" for profits, this will depend on various factors, including the level of current and past allowable capex spend, as referred to above. Likewise, it can be difficult to confirm the oil price at which a company would be better-off above US$49.95 given capex offsets. However, as a general rule of thumb, an oil price received around US$61/barrel would be required to obtain the same level of profits from sales at US$49.95 if capex spend is zero for that period.

Columbus regularly meets with Trinidad Government representatives and also liaises with other oil & gas companies operating in Trinidad with a view to improving the tax environment for oil companies operating in-country, in particular with a view to amending the SPT regime to soften the impact on companies once the oil price received exceeds US$50/barrel. This is an ongoing dialogue but like most taxation considerations, there are various other commercial, social and political issues in play which Governments and their advisers need to consider. This generally means that the pace of any changes can be slow. The Company will provide relevant updates via RNS if there are any changes to the current SPT arrangements in Trinidad.

[toploadermike] 21/11/2018 14:28

From StockMarketWire

Rising oil prices boosted oil majors BP and Royal Dutch Shell, helping the FTSE 100 trade 0.7% higher at 6,994 around midday.
Brent crude oil climbed 1.5% to $63.49 per barrel.
Shares in BP added 1% to 524.4p and Royal Dutch Shell advanced 1.1% to £24.21.
Gains in miners and utility stocks also supported the blue-chip index.
MID AND LARGE CAP RISERS AND FALLERS

[smoggyg] 21/11/2018 10:59

Oh dear,bid 3.2p and no buyers at 3.5p offer,I feel a TIMBERrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr coming on here! 2.8p-3p placing perhaps?

[nexus7] 21/11/2018 09:24

Oil Legend Andy Hall Sees Scope for OPEC-Fueled Crude Recovery

► WTI below $60 further on futures curve represents bottom: Hall
► Says satellite imagery offers ‘much bigger window’ on market


Oil may be poised for a recovery and OPEC will probably reimpose supply cuts in the next month or two as inventories in the producer group have swelled, according to legendary trader Andy Hall...

[nexus7] 21/11/2018 00:25

From emilyt16 Tue 20:43
-------------------------------------

Malcy to the rescue

[toploadermike] 20/11/2018 23:09

From Business News AU

Oil slumps 7% amid gloomy trade outlook
Oil prices have tumbled about seven per cent, with US crude plunging to its lowest level in more than a year, caught in a broader Wall Street sell-off that was fed by rising concerns about slowing global economic growth.


Gold dips as buyers flock to dollar, bonds
Gold prices edged downward as investors flocked to the dollar and US government bonds amid steep declines in global stock markets, denting appeal for non-interest bearing bullion.

[toploadermike] 20/11/2018 23:03

I've cut some losses on other shares today and have an additional £6.8K available for CERP should the market be good for a buy. But again, still really concerned share price will continue down side but prepared to level out (as I have been doing) but won't be staying in past .3 as after that red line hit. May get a rise tomorrow though hopefully.

ATB
TL

[greatfull dead] 20/11/2018 12:06

Not at all bothered by share price drop. Its partly down to PoO.

ATB,
GD

[toploadermike] 20/11/2018 11:35

Back down to a 2 spread and little shares trading.. mmmm that should kick some buys off if it stays at a 2 spread...

[toploadermike] 20/11/2018 11:13

TG,

Agree with you and I've been investing 24 years this year and I know exactly what you mean, and in fact I still have some in the drawer from when I first started investing, the great blue yonder never came for those shares, so in fact and as you say the bottom drawer shares are not always good shares and more often than not AIM listed shares don't materialise into massively profitable shares, hence the higher risk factor. But that's the game right, and if they all did hit the ceiling then we would all be living on our desert islands in cloud cuckoo land, just like Chutes... :)

Got to laugh, made my day that one....

ATB
TL

[toploadermike] 20/11/2018 11:02

You're a moron Chutes, if you had looked at the timings and understood investing, you would understand.. grow up...

[chutes01] 20/11/2018 10:53

indeed seems like tl-mike is a bit of an idiot, i'm adding here, oh i'm getting out, oh i'm adding, whats happening,
just buy enough and settle down son.

[the guardian] 20/11/2018 10:53

Edgein, the trading volume here is very small. That's because if anyone misses the three month update, then there is nothing to create awareness of the company for another three months.

As for putting shares in the bottom drawer, I have been in this game now for about seventeen years and have found that shares that go into the bottom drawer often disappear before the drawer is opened again.

[toploadermike] 20/11/2018 09:59

Marketing is really important these days, bigger Co's put a lot of money into it for a very good reason, "Awareness" and the same principle does apply on the Market.....

I wouldn't want to see CERP ramped in anyway shape or form but what Carp says is absolutely spot on and if LK spent a little more on "Awareness" I have no doubt it would improve the share price and put it where it should be regardless of current market conditions and if you think about it with clarity, the price should be 1 or 2 points higher even in these conditions, especially with all the strategic advancements that have been made.

I'm not against this share in any way shape of form, I am for it but I like to see potential realised and I also like to see realistic prices. VFM.......

ATB
TL

[jcgswims] 20/11/2018 08:44

Looks like the website has been updated to reflect the expanding operations

[edgein] 20/11/2018 08:44

Carp,

Speed of reporting doesn't change the outcome of the progress. I've these bottom drawered until we see the green light in either of the following Suriname deal, Colombia deal, SWP drilling. The off chance of material price moving news could be Snowcap drilling before Christmas as that could give a good production result for at least a few months. I cannot see reporting on we're working over X,Y,Z every few weeks NR-style having anything more than a negligible effect on the share price in the current market. I find it mildly irritating that the share price is declining too while production and reserves have been on the increase, but its a bad market at the moment and it'll take substantial news to put these in a permanent uptrend until the market improves. If they do a SQZ-style deal in Suriname then the brakes will come off big time.

Regards,
Ed.

[toploadermike] 20/11/2018 08:33

Your absolutely right Carp and I think I will do the same.

ATB
TL

[carpadium] 20/11/2018 08:31

Ed, still maintain that if Leo threw out a few crumbs of comfort (they do exist, it doesn't all happen magically at the end of a quarter) then there would be less selling and, as a consequence, the task of continually clawing back lost ground less of a problem.

Time to recognise his present policy of releasing quarterly updates only is not working well and imo is a failed policy. But enough from me on here about the subject, I shall be writing to LK expressing my feelings, for what good it will do.

[toploadermike] 20/11/2018 08:26

Egg,

Been into CERP for a while and have continued to top up regularly but that's not the point. If the share price continues to drop I won't be staying in as played that game to many times before, better to offload and buy back in when the share price hits the rocks. Which looks to me like it will if it keeps on going the same way, or until some decent regular news updates are released.

I have no issues investing in stocks with potential but potential is not worth much, it is results that matter.

I wonder how much others have lost on CERP in their time on investing?

ATB
TL

[edgein] 20/11/2018 08:17

Carp,

Even if they were giving monthly updates nothing is going to change at the moment, their plan will remain target of 1000bopd+ by year end etc. Imo there's nothing material to report at the moment, just workovers etc. I guess they'll report on drilling when it happens, deepening Bonasse or Snowcap drilling. But apart from that we can just assume more workovers and waterflood etc. The reason to keep holding isn't imo any of the above, but the possibility of another deal closing, some of which have been ongoing for some time now. The deals so far have been very good strategic deals but the largest by far is the SD deal with around 6-7mmbbls or 2P (until we get some reserves from the BOLT/SWP deal). So its all about timing of the material deal and personally I wouldn't sell while the production is due to be making progress on the new fields.

Guardian,

They'll not be drilling SWP until mid next year so they'll have little to report beyond the targets that they've already identified and reported on. If Predator opts to buy TI then they'll have action on the SWP short-term, but that won't happen until the gas injection has some results from TI.

Regards,
Ed.

[eggchaser] 20/11/2018 08:15

The boys and I have been invested here for a while but seeing how you only topped up on Friday TLMike your following posts look a little short sighted when a longer view is needed.The performance of the share price has been in decline for a while yet you topped up - then come your comments about selling up. Either you are as sensitive as a hookers nipple or daft but surely before you bought you will have seen the signs and therefore we wonder just what led you to invest in the first place if in days you are feeling negative about your decision.We are holding out for the SWP activity because this is where the major gains or losses will come? In the meantime the end of year production may steady the ship but that's not what it's about and looking at LK's M.O we think he is of the same view hence why the SWP has been brought forward.Perhaps you should take an early bath if time is not your friend. In the meantime we are young enough to go the full 80 minutes and still have the energy for a late night of frolic till the early hours when the action begins!