LONDON (Alliance News) - Columbus Energy Resources PLC said Wednesday it has integrated its Steeldrum Oil Co Inc acquisition, significantly raising its third quarter performance compared to the second.
Shares in Columbus Energy were down 6.8% at 3.96 pence on Wednesday.
The incorporation of Steeldrum into Columbus's business performance resulted in a significant average production increase to 735 barrels of oil per day in the third quarter of 2018 from 553 barrels in the second quarter.
Steeldrum was incorporated with effect from July 13 and for the three months to September 30, revenue was USD3.9 million. This compares with USD3.0 million in the six months to June 30.
Production from Trinidad, which is where Steeldrum's licences are located, is to exceed 1,000 barrels of oil per day by the end of 2018.
"Joining the two entities together provides a stronger platform for growth and helps de-risk our portfolio in Trinidad," said Columbus Executive Chairman Leo Koot.
"Gross revenues from oil sales from the expanded Columbus portfolio increased to over USD3.9 million during the quarter and further production growth over the coming months should provide additional revenues and cashflow to allow us to chase additional growth opportunities," Koot added.
A further Trinidad project, Snowcap Field, is to begin production before the end of the year, beginning with the re-starting of the Snowcap-1 well.
According to Columbus, there was "no material activity" in Spain during the quarter. The company maintained its Ayoluengo Field while it awaits a new tender offer from the Spanish authorities. Costs of USD400,000 were incurred in relation to Columbus's Spanish obligation during the quarter.
Koot said that the company was seeking to address this and other cost issues going forward.
"We continue to address a number of legacy issues which have been unavoidable during the quarter, including ongoing issues in Spain and the need to undertake a 'financial catch-up' on both abandonment fund provisions in Trinidad and also the placement of performance bonds on our Trinidad fields, both involving costs which should have been incurred a number of years ago," Koot said.