LONDON (Alliance News) - Columbus Energy Resources PLC said on Monday it has been instructed by the Spanish government to decommission the Ayoluengo oil field in the La Lora concession, onshore Spain.
Various assets, including equipment on the site will be moved to and used in the oil & gas producer's Trinidadian operations, or sold to reduce costs from decommissioning. No material cash expenditure is expected to be made in relation to decommissioning the concession.
"The company is disappointed that the Spanish government has not publicly stated why it has decided not to re-tender the La Lora concession, especially as we have been led to believe that a new tender would be forthcoming before the end of 2018. The company will consider its options with respect to the government's decision," said Executive Chairman Leo Koot.
Shares in Columbus Energy Resources were down 5.1% at 3.70 pence on Monday.