Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Druid - hope this helps !
Columbus had an executive who was a very experienced with corporate law - he wasn’t happy with status quo and negotiated new deal with licences before CERP injected any serious investment - it’s why they were happy to talk about scaling and selling on/ partnering.
One RNS detailed the work done - probably issued at similar time to the date on my cut n paste - haven’t got to it yet!
Columbus Energy sees material upside in Trinidad's SW Peninsula
Published: 11:00 21 Mar 2018
"As a result, we have identified more than a dozen prospects, each of which has the potential to hold more than 20mln and 400mln barrels individually.
oil wells
Goudron is onshore Trinidad
Trinidad’s South-West Peninsula has huge potential upside for Columbus Energy (LON:CERP) says Leo Koot, executive chairman.
Talking to Proactive, Koot said he was delighted with a renegotiated deal with Bolt for acreage in the peninsula and hinted more deals are around the corner.
READ: Columbus Energy successfully restructures BOLT transaction in South West Peninsula of Trinidad on materially improved terms
The new deal will see Columbus relinquish its interest in Bolt and set up a new company, Columbus Bonasse, that owns the lease rights to the fields in the SW Peninsula.
In essence, Columbus now has a contractual relationship directly with the landowners rather than a company in-between such as Bolt, Koot said.
“This gives us way more security and control of what we are going to do.
Druid - as S1 was an exploration well it was understandable Koot said that - he found oil at pressure - it was disappointing they weren’t able to capitalise on it ultimately- perhaps someone else will and will be prepared to pay a good price for the field to CEG.
Druid - I don’t recall anyone guaranteeing success of S1 - it merely was an exciting prospect which, if successful, had ability to be scaled up with many more wells. Koot was positive about it and the shareholders supported the venture - it was an exploration risk.
The result of the drill was striking of oil but not without significant technical difficulties which it was suggested could be overcome. Don’t forget the drillers of S1 offered very advantageous terms to drill S2, subsequently rejected by BOD of new company who were reluctant to share profits. Outcome of S2 was poor and the field now appears to be up for sale.
It appears BOD have learnt from mistakes and advised, from outset, Uruguay would be farmed out - this is consistent with a lack of development capital.
Investors need to consider current projects and available cash - no guarantees of future success.
CEO pitches well and Uruguay may well prove to be a big win for the company - if investors want to assume the risk I’m certainly not going to discourage them - the negative risk is apparent- it doesn’t need embellishing with conspiracy theories regarding ex employees ( Ritson & Koot ) that you can’t offer a shred of evidence to support!
Icemax - good response! I believe if you scrutinise my post again you’ll see i didn’t specifically suggest you were trolling but it was deliberately ambiguous to see if you took the bait - but you didn’t so respect to you!
Icemax - the Oz crew seem to be competently supporting the share price by remaining steadfast for more than a year - many trolls will put their own spin on that as they appear to find it frustrating.
The company now has a new strategy, which appears to be working and Uruguay appears to be attracting plenty of interest. This share remains a high risk speculation, imo, but unlike the trolls I don’t seek to discourage as I can’t be sure that it won’t be successful!
Zag - can’t rule out failure- after all this share in all its different guises has always been ultra high risk - I’ve been saying that on here for eons!
The existing shareholders want the BOD to try and achieve success- the BOD are doing what’s been asked, including publicising it with explanation, but all they get from the disgruntled on here is whinging and whining about their past losses when they obviously risked far more than they should have - why is that the fault of CEG?
Zag - no need - it suits me to use his post as an opportunity to state facts which the disgruntled don’t like to hear!
Here’s more Zag - the company is still going, with the support of the shareholders, it has a chance of doing very well out of Uruguay and in the meantime the BOD is keeping things going well in Trinidad.
Only months ago CEG staring down abyss of legal action threatening in excess of $100 million- who’d have thought they would turn that into a multimillion positive on the balance sheet! CEO says more asset sales to come - watch this space!
See what I mean about taking opportunities, especially from the disgruntled!
Druid - there you go again - now ramping the bod fund raising skills - the idea of the farm out is to lessen need for cash raising whilst maintaining salivating risk exposure to the new exciting Conjugate Orange Basin opportunity.
I don’t rule out cash raising in the meantime, depends on availability of cash from sale of non core assets in Trinidad.
Glad you’re now able to see the possibilities here and not just whinging and whining like the disgruntled ex-shareholder cohort who appear to blame the bod for not hitting oil when the COS was clear for all to see before the event!
Srdoddy - in your previous post you referred to licences ( plural ) so I assumed you were concerned about the Uruguay situation which is free of charge in terms of annual fees but is clearly subject to fulfilment of work obligations, which CEG have accelerated on the first licence.
I also read the RNS and was surprised you were concerned about the Trinidad licence ahead of knowing the actual terms . Many thanks to the recent poster who put meat on the bone in that respect.
GG - I did posit an explanation for BP walking away some years ago - they did not know, at that time, how successful the drilling in Namibia would be. This is now known and the link to the Conjugate Orange Basin appears to be widely accepted by Majors - hence the interest from Shell et al. This development is significant because the prize on success is huge so it affects the risk/ reward assessment. I then went on to say that BP have now changed their stance on new exploration projects under new CEO Looney so even the new information probably wouldn’t justify a reassessment of the project.
Briggsy - most of the recent Uruguay license awards have been uncontested- does that affect the potential of the license?
I notice you now feel confident to advise on the state of CEG finances ‘ for sure ‘ - this is quite a departure for you - care to share your detailed calculations - I doubt it !
Briggsy - I’ll be very pleased for shareholders if this does, indeed, turn out to be a master stroke.
Obviously that won’t please the legion of trolls out there but no one begged them to become involved here, knowing the company’s activities were always highly speculative!