Columbus Energy Resources Share Discussion Threads

[jcgswims] 17/6/2017 11:03

The Columbus related extract from the Upstream Article

"When the opportunity to head LGO came around, Koot admits he took his time to think about it before deciding to grab the chance. “This is definitely something that fell between the cracks, I said to myself.”

The company, re-branded as Columbus Energy Resources, is now in the process of expanding its reach beyond Trinidad, where its focus has been so far.

“First steps will involve work on pumps, infrastructure and water injection," Koot says.

"The plan is to build from there and get production from 400 barrels per day of oil to 2000 bpd and beyond.

“We will then work out future exploration opportunities and decide if we want to bring in other partners or farm-out. I would be interested to bring in Big Oil,” he adds.

Under his leadership, over the next three to five years, Koot aims to turn Columbus into a production-led exploration company focused on South America."

[dodge city] 17/6/2017 09:01

Koot lives in a world of fantasy

[nexus7] 16/6/2017 21:17

From the above presentation

Why the South West Peninsula?

• Estimated to be 1 to 4 billion barrels oil in place

[nexus7] 16/6/2017 21:00

Building an oil production led
South American exploration business
Leo Koot, Executive Chairman, June 2017



(Presentation with Microsoft Power Point)

[the guardian] 16/6/2017 16:49

Cheers jcg, that one worked.

[thenorth] 16/6/2017 16:26

So less wells means cash saved where some of which will be spent on water flood and targeting the lower depths....Maybe we should nickname Leo and his squad - The A Team... so in 5 years time with an share price of 100p plus he can light a cigar and mutter....'I love it when a plan comes together'

[jcgswims] 16/6/2017 15:18

TG, yes it works ok. I use Libre Office as an alternative to Microsoft. It's free and I've never had any problems with it.

If you try Libre and still can't get it to work I'll take a screenshot of each page and post them on here.

[arrynillson] 16/6/2017 15:06

TG - great presentation, amongst other things debt down to $1.6 million with the comment repayments being made in cash ( just in case there were any TWERPS suggesting otherwise LOL! )

Interesting picture of rock sample at Galpha point - has something of the look of NR about it!

Official mention of alternative methods of EOR - for those worried that Trinidad is the next candidate for desert status !

[the guardian] 16/6/2017 14:46

Thanks jcg, does the presentation work OK? I haven't got the latest edition of powerpoint and so downloaded a converter but it stops after 4 pages.

[jcgswims] 16/6/2017 14:23

Launch presentation now on CERP website

[jcgswims] 16/6/2017 14:21

From VSA



Columbus Energy Resources (LON:CERP)

Columbus Energy Resources (CERP)# presented to investors yesterday evening to officially launch its rebranding and gave an outline for its strategy going forward. Having spoken to the almost entirely new management in place we now view this as a materially different company. In short, we are extremely impressed by CERP’s new leadership and the significant progress that has been made both in Trinidad and London in the 5 weeks since Leo Koot was announced as CEO. Our key takeaways from the event are summarised below.


Management

Leo Koot - CEO

In the coming years we will probably view 10 May 2017 as the day that realistically transformed LGO Energy into CERP upon the appointment of Leo Koot as CEO. We view Leo’s appointment as an extremely positive step made by the company for a number of reasons and, in truth, the announcement was a very welcome surprise to us at the time.

Primarily we are excited by LEO’s wealth of experience, not just his 28 years of expertise in the oil and gas industry but by the fact he has built an oil company effectively from scratch before as Managing Director of TAQA (Abu Dhabi National oil Company) UK. In this role he built the organisation from a few people to an organisation of over 2,000 staff and contractors and delivered a mature E&P operating company that managed 60kboepd production with US$1.7 billion in annual revenues. Further to this he has been a board member of AIM listed Sterling Energy (SEY), Managing Partner of MENA Gulf Investment Partners (Abu Dhabi), whilst prior to TAQA he was CEO of Energy Development Partners an oil and gas business creating ways to match capital and resources with developing production, for which he helped raise a US$350 million private equity fund. Leo has a Master in Petroleum Engineering and a business degree from Harvard Business School.

Gordon Stein – CFO

Further to Leo’s appointment Gordon Stein was announced as the new CFO on 15 June 2017. Gordon has already made his influence felt in the very short time he has been appointed as at the briefing yesterday it was announced CERP was moving its London office, which is estimated to be saving the company c£20,000 per month.

Gordon has over 24 years of international experience in the oil and gas sector and was most recently CFO of Madagascar Oil. Prior to this, he was CFO at Cadogan Petroleum, Vanguard Energy Limited and Regal Petroleum. Gordon is a member of the Chartered Institute of Public Finance & Accountancy.

Stewart Ahmed – Managing Director, Trinidad

Stewart Ahmed’s appointment as effectively country manager in Trinidad is another appointment we view as being important in turning the company around. Previously under the old management CERP did not have a board member in country, however, Stewart will be based in Trinidad to oversee operations and as outlined at the briefing has already made a number of operational improvements at the field to make it more productive at minimal cost. Significantly by having Stewart both on the board and working on site in Trinidad we believe this will remove any disconnect between the two and will bring his wealth of technical and commercial expertise from his international career.

Stewart has 32 years oil industry technical, commercial and management experience, most recently as Chief Operating Officer and General Manager of Madagascar Oil in Antananarivo from 2013-2016. Operating the Tsimiroro Field steam flood pilot, he gained the first Field Development License in Madagascar’s history.

Geological Potential

From the presentation made to investors yesterday it is clear that Leo is extremely enthusiastic about the potential in CERP from a geological and technical perspective. The first point he makes is that the quality of the oil is particularly good (38° API) i.e. the oil is light. This is particularly unusual when considering that the reservoir depth at Goudron is shallow (c500m), ordinarily at these shallow depths one would expect the quality of the oil to be much lower and viscous due to biodegradation of the oil and interaction with bacteria. However, as this is not the case this would indicate that the oil is leaking and, therefore, migrating from a deeper and much larger source which the management indicated it will be targeting to exploit.



Strategic and Operational Improvements

CERP has already moved on from the days of LGO and its strategy has moved accordingly and it plans to implement a 3-5 year strategy to add incremental value to the business. Previous management indicated it wanted to drill 45 new wells into the Goudron Field which were expected to produce c50bbls/d initially before gradually tailing off. The new management has now confirmed this strategy will not be followed and will be implementing a new one. Whereby, instead of drilling new wells CERP plans to increase the pressure in the reservoir through water injection in order to encourage the existing wells to produce at or close to their initial production rates. Indeed the field has produced c2000bbls/d in 2014 and these are the sort of numbers that the new management is targeting.

Management are confident by implementing these changes and a number of other cost cutting measures this will allow it to become cash flow positive in a matter of months. CERP will then use some of this cash to build up production further.



South America

Finally CERP indicated its intention to export its expertise into South America, therefore, we expect it to announce M&A activity in this region in due course.

Summary

We have summarised the key points of the meeting below and we now view CERP as an entirely different investment proposition to LGO and we are excited to see the new management follow through on these plans.

• CERP plans to implement a 3-5 year strategy to add incremental value to the business

• The first part of its strategy is to grow its production organically from its currently producing assets in Trinidad to allow it to become cash flow positive through a number of cost cutting measures

• CERP then intends to invest part of this free cash flow into its exploration portfolio in the South West Peninsula where it is targeting several large prospects

• CERP plans to build on its asset base in Trinidad with a portfolio of assets across South America

[offerman] 16/6/2017 13:33

Hi Peter , you're certainly not.I'm over £200k down being honest with you and I don't mind admitting it. Could've been the opposite and with a couple of million but just a couple of wrong decisions cost me dearly. Saying that though I'm not dead and buried as I haven't sold a single one and did Average down a lot.My original investment was 3.8p old money. Then I did average down greatly I needed 1.2p all money to break even.In fact when I think about it I'm probably way off the mark as I haven't really thought about it in new money. So 22p is 1.2p or money I think. So that would get me nearer the mark and maybe a small profit. However, what the north and guardian have said is quite right about averaging down especially with their security and history of Leo.Have been waiting for a chance to average down and I nearly did not long ago at 1.8p! But I'm looking at splitting any new money between here and PVR where my average was £1.34 ( considering they were 9 pounds and have even more assets and everything now then when they were 9 pounds and an upcoming drill in 1 to 2 months time could be extremely rewarding over there. There Barryroe might also get farmed out and a big discovery at druid they could be ripe two people out completely. Interest has definitely risen around overseas for a oil lots of big metres of light in the area.But of course here at Columbus energy there is huge potential now with Leo with the waterflood with Cedros and now South America talk.It might actually pay me to wait and participate in the open offer rather than average down as the open offer price will be a lot lower than the current market price to entice interest.

[arrynillson] 16/6/2017 12:52

TheNorth - unfortunately creativity is not these bashers strong suit - my sides are hurting after laughing so much at the latest efforts - they are certainly the TWERPS of CERP!

[the guardian] 16/6/2017 12:50

Same here, I have 500k so only need 6.5p to recover all of my losses. I couldn't see that happening under NR but under LK, I'm expecting much more than that.

peter, I'm only a young sprog at 66 but I admit that when looking at investments, the age factor does come into play. Hope you have a long and healthy life. 75 is quite young nowadays.

[thenorth] 16/6/2017 12:40

Hi Arry here is an extract to a response ref water and water flooding....Well as LK takes charge and is already making very good changes (waterflood and cost cutting), the derampers will have to get more and more creative. There was talk about even hybrid EOR here which would be CO2 as well as water, so LK will have all sorts of operational options. But he's getting straight to business and I like the way he operates, no nonsense, its a pity NR didn't reduce office size ages ago. Waterflood is going to make this an exciting summer, repressurising the C-Sands that are relatively untouched could give some impressive numbers as the pressure builds.

[thenorth] 16/6/2017 12:39

Offerman and Pete is it an option for you to average down by buying more? It's what I did and I won't need much to break even?

[thenorth] 16/6/2017 12:38

Ed exciting indeed and 30p would be welcome to many...TG you kill me... !!! 1 and 2 trades!! LolPeter that's terrible news and I hope you get back your investment.

[peter_pb] 16/6/2017 12:17

Thanks Offerman, glad that I am not alone! I am 75 on Monday and hope that I can get near a break-even before I die!

[the guardian] 16/6/2017 12:06

The North, I think that the number 1 is a signal that the MM is going to pay a short visit to the toilet. A number 2 requires a longer visit.