Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Thanks bigmj, hopefully it's not about Spain as per their previous RNS "The Company will consider its options with respect to the Government's decision." The sooner we put Spain behind us the better imo.
RNS from Predator this morning
"Highlights
-- Operational planning for C02 EOR at the Innis Trinity Field in Trinidad progressing well.
-- Expected initial oil production rate in first half of 2019 in the range of 318 to 392 bopd.....
....Onshore Trinidad - Inniss-Trinity oil field
Operational planning for the commencement of Enhanced Oil recovery operations using injected carbon dioxide ("C02 EOR") is progressing well with the delivery of the selected C02 injection pumps from the United States supplier being scheduled for January 2019.
Scoping reservoir engineering studies have been completed, based on which surface facilities have been designed for an initial oil production rate in the range of 318 to 392 bopd.
Combined existing production rate pre-C02 injection from the wells which are being included in the Pilot C02 EOR project is 45 bopd and therefore the target in the minimum case is a six-fold increase in incremental oil production ("Enhanced Oil Production") compared to existing production levels. Enhanced Oil Production will be the Company's share of future production."
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.
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.
Looks like the website has been updated to reflect the expanding operations
https://columbus-erp.com/operations/
If you register on the VSA website, the full and more detailed note is on there to download
https://vsacapital.com/research-papers/
Capitalidea, I don't understand where you are getting your figures from, ignore the %, if Schroders increased their holding by 25,236,953, at 3.5p this would equate to £883,293. As Bigmj stated, himself and Burggraben have taken £1.75m.
You just need to look at the difference in the amount of shares rather than the % as this changes because of the increased number of shares in issue.
I'm presuming the increase in Schroders holdings is a result of the recent approved placing. They've increased their stake by 25,236,953. The total placing shares was 71,428,571 so we should be getting another holding RNS from Mike Joseph if this is the case.
Trinity Inniss CO2 info from Predator presentation
https://www.predatoroilandgas.com/sites/www.predatoroilandgas.ventures/files/Predator%20Proactive%20Presentation%20Oct%202018.pdf
Offerman, I received my form from Iweb a couple of days ago so contact your broker and ask them to send you one.
Columbus Energy Resources
Columbus has raised £2.5m in a placing at 3.5p (a 6.8% discount) with new and existing shareholders. Half of the proceeds will be used to repay the North Energy Capital facility ($1.25m) and the rest to establish a multi-well drilling campaign on the Steeldrum assets and in the south-west peninsular facilities. The raise has been brought on by existing shareholders who approached the company asking it to use the money for an ‘accelerated growth strategy’, rather than be paying back monthly debt repayments.
The raise is a good thing and with CERP’s problem being one of how to ‘bulk up’ the business is a reasonable start in that process. I have written many times about how ambitious Leo Koot is and clearly his shareholders want to participate in that which is admirable, maybe once this bulks up a bit more there might be an M&A opportunity available for the next stage…
vox markets .co .uk
10mins 20secs in - Malcy talks CERP
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kazz12 Oct '18 - 07:33 - 5895 of 5899
Cheers Offerman
Did he say anything about the new pumps to resolve the sand issues?
Regards...Kazz
offerman12 Oct '18 - 08:12 - 5896 of 5899
Hi Kazz,
Yes I asked that question .
He said the pumps had allowed for longer on stream production before being taken offline to treat the sand issue. Hence the peaks and troughs in the daily monthly production numbers.
What we need to remember too is that so much has been learned from Goudron that these techniques can be used elsewhere on our new licences.
I asked that we shouldn't then get the same sand problems elsewhere as they would be different characteristics to the wells to Goudron . Leo said that is correct.
A follow up post this morning from Offerman
offerman12 Oct '18 - 07:15 - 5894 of 5899
Just want to correct one thing and add a couple more questions I asked.
On my final paragraph on the report I stated my final thoughts " you can basically poke a hole in the ground and find oil ".these were Leo's comments to me not mine so basically I was repeating what he told me . I have not been to T&T so wouldn't know . I just meant the potential is huge.
Another question I did ask and forgot to mention , was
Q Had the equipment and techniques brought in made any difference to the rejuvenation .
A yes, it has allowed for longer production times before we take offline for treatment compared to before.
Q. Is it possible an earthquake can affect things ?
A yes, it has created more oil .
Q: people try and scaremonger and use and excuse they can from sabotage to earthquakes .
I have been involved many times ( too many in fact ) where companies have drilled exploration wildcat wells and more often than not the RNS says" drilled to target depth , no hydrocarbons encountered the oil has migrated from the chamber but valuable technical data was achieved about surrounding areas "
So is it possible that oil could migrate leak away due to earthquakes where we are.
A . The Earthquake has actually created more oil in the region .
So in my opinion whilst we were all a little frustrated with Goudron including Leo and team , remember production has still increased , they have done all that they can and it has worked, just not to the levels we would have all liked.
It's thanks to Goudron and skill set of the team that has got us this far. Has allowed more revenue CFP which has given us leverage to make the other deals cover costs etc along with refinancing ,restructuring , updating and putting back online generators for continuity when called upon should main power cut out for any reason.
Just think , look and see where we are now right across the board from infrastructure to personnel to production .
We have picked a winner here imho.
Columbus Energy Resources
I have a great deal of time for Leo and Gordon but reading the CERP update today I was reminded that brevity is not one of their strong points. Trying to fish out the salient points of a long old statement made me wish that they had delivered two reports but I know that they do it with the best of intentions and there is much work still to be done.
What I picked out was that Q3 production was 735 b/d with a peak of 879 b/d and with the recent Steeldrum acquisition the 1/- b/d target for the year end is still on track. This makes them cash flow positive from operations and with a cash balance of $1.97m and further cost savings from downscaling of the London office again showing admirable discipline.
The fact that such a good management team has found so many skeletons is of no great surprise but it does delay the progress so clearly desired by messrs Koot and Stein. They talk about continuing to work on ‘new acquisition opportunities’ in Trinidad and South America and being ‘accretive to shareholders’ but for the time being this scaling up of the business looks some way off in the absence of a major injection of capital. Having said that, with the battles mainly behind them and a solid production base and lessons learned, buying the shares at below 4p and a market cap of only £25m does give scope to follow a pedigree team in an exciting post code…….
Columbus ERP @Columbus_ERP · 5m5 minutes ago
#CERP is looking forward to meeting shareholders at its investors and analyst event on 10th October commencing at 6:30pm, presentation at 7pm at Manicomio, 6 Gutter Lane, London EC2V 8AS