Member Info for LGO-fan

What are the realistic chances of success in the SWP? One of the reasons that Leo joined Columbus was because he was excited by the opportunity for exploration in the South West Peninsula. He believes that the assets we have there are the type of assets found in a major oil company’s portfolio given the potential resource size. The assets in the SWP are near to, and geologically a part of, the prolific East Venezuelan Basin, offering significant exploration, development and production optionality and the assets have the potential to deliver transformational growth. From an exploration perspective it ticks many of the boxes given its proximity to a proven oil play and is located in a well-established oil province with easy access to export for any successful development project. It offers, from an onshore location, large scale, exploration potential that would typically be seen offshore where the drilling costs would normally be 3-5 times that of Columbus’ onshore exploration wells. In addition, the SWP is relatively shallow, keeping exploration and development well costs down. All these reasons make us believe that this is a relatively low risk play in exploration terms, improving the chance of success on what would certainly be a material play in worldwide oil terms.

Will Steeldrum make a tangible difference to the bottom line? BOPD may increase marginally but so will costs/overheads? We believe Steeldrum has the potential to make a tangible difference to the Company’s bottom line. The acquisition increases and consolidates the Company’s acreage position in SWP, giving Columbus six fields to play with and will generate further cash for the business. It also delivers optionality and flexibility to the Company on where it invests its cashflow to deliver the greatest returns for shareholders. The Columbus management team recently spent some time in Trinidad reviewing the Steeldrum fields and have identified numerous opportunities to establish “quick-win” production growth through a programme of well optimisations, well reactivations and also some infill drilling activities, all to be funded from currently available resources. This would be in addition to our already announced activities at Goudron, Bonasse and Icacos. Further information on these planned activities will be announced in the near future. Both companies are already working together on plans to obtain real production growth in the near-term and an integration process, bringing the two companies together, is currently being progressed involving management and staff from both companies. Some of Columbus’ operations staff are already working with Steeldrum staff on early optimisation targets on their producing fields through a short-term contractual service arrangement. The Company is seeking to complete the Steeldrum acquisition within the next few weeks and has made good progress to date on the outstanding matters required for completion to come into effect. As with any acquisition, there will be an increase to overheads in the short term but there are a number of integration and natural cost synergies. The integration process continues at a pace and management are hopeful it will be completed in the not too distant future.

The so called transformational growth is suggested will come from a successful drilling campaign in the South West Peninsula (SWP). How will this be funded and will it involve any significant dilution of current holders? The Company’s strategy for over a year has been to fund our initial exploration activities in the SWP from cashflow generated from our operations. At the end of 2017, Columbus became cashflow positive from operations and is currently following an active campaign to grow production and cashflows, including through the addition of the Steeldrum assets which the Company believes will provide many new areas for early production growth. It is intended that future exploration activities will be funded by this cashflow and from existing resources, with the initial drilling campaign still being planned for mid-2019. Management are 100% aligned with shareholders and are investing in the Company on a monthly basis by taking 50% of their remuneration in Company shares. They have no plans to introduce measures which result in significant dilution for shareholders. On exploration success the Company would seek to progress innovative additional funding arrangements in an accretive manner to appraise and then develop the SWP and has had discussions with numerous parties interested in assisting the Company unlock the huge potential of the SWP. There are plenty of financing options available to the Company that would not result in significant dilution should the Company see success in its exploration activities.

my hypothesis is, that when pints are involved, I no man will ever disagree

Viva Faz, indeed! Legalease and Lancy, you back again?! Long time no post :-)

Again....you can't have it both way, Rossita! You quote that NR is incompetent, but you are happy to use his numbers for your own little quotes....Oh, boy....this is starting to become a daily bad habit dear boy!

Well, lots of opportunities for CERP on the back of Petrotrin restructuring their business: higher price for our light and sweet oil, a new approach that could me more favourable towards oil exploration, .... Crikey, here’s me thinking ROSS and LLL were pointing towards impeding doom, turns out they were point towards fantastic opportunities for CERP!

Totally agree! Pretty sure Lk will state much higher chances of success. Ross so often contradicts himself: he slates the VSA document when it suites him and then praises it later when it suites him. It’s mistakes like these that really expose guys like him. Can’t really blame them: at the rate they are posting on here, they will make mistakes sooner than later. “Slowly, slowly catchy monkey!”

you can’t have it both ways Ross; you told us VSA’s document is rubbish. Now you are quoting it, pmsl!!! More importantly, the Q&A is well worth a read and a confirmation of a lot of exciting stuff to come!!

there we go, it took CERP a bit longer to issue the RNS, but reading it I feel it is a far better RNS than what we saw from TXP, so well worth the wait. Clearly a superior BOD at CERP than other T&T O&G-companies (guess who is hitting the roof right now, lol?!!!!). Well done LK et all, I love it when they put me straight like that.

that is undoubtedly all true, however this is one of those rare occasions I agree with Ross/LLL: a simple RNS would have been good to reassure shareholders. If you can make the effort to post pics on Twitter of the big grin, you can make the effort to issue an RNS about this too. Certainly after the declines in the SP in the last 12 months. Poor form from LK et all.

Hi guys,

I am a new potential investor and starting to do my research. Read the RNS this morning as this feels like a well run, proper company. (unlike most on AIM). I am more and more convinced this is a proper investment and hope to be able to buy in soon, when other investments come to fruition.

A couple of questions:

1. 8000 bopd by end 2018, from 4000+ seems incredible challenging? How does SDX plan to achieve this?
2. SP is -6% around 8:14, suggesting some investors expected even better results? Was there a consensus target that was delivered upon in Q2 I am not aware of?

Thanks for your help,

GLA

hang on, it just hit me....someone wants to buy a pint with his earnings here, lol!

bonkers! why on earth even bother :-)

agree, that is the only logical conclusion. Very risky all this day trader’s stuff, certainly at this point in time. Peeps who play this game now risk being seriously disappointed in the not too distant future IMHO. Great top up price or entry point for new pi’s.

I can confirm Joebop is one of those technical experts (I like to call them geeks - with a lot of respect as they have tons of knowledge I will never have). And yes, he is very sceptical; though I prefer to call him critical. You can take what he says or leave it. Like always it is never a good idea to take or leave everything being communicated by one poster. That goes for Joebop as it goes for anyone else, including Bonker99. Bonker99, I like a lot to. Lovely TA, great charts and informative blogs. Read it, like Joebop’s posts, digest, do your own research and make your own conclusions. They both have an ego, like all of us, but I like them both. Both say things I don’t agree with, both give me good pointers, both get it right some times, both get it wrong some times. But above all, this board would not be the same without them. It’s all good; really.

est magnifique!!!!....,40%....that can’t be right, can it?!

well, it is a bank holiday weekend after all :-)

they may still try to achieve that

Careful here, Captain...I may not always agree with Joebop, but he is one of them oil geeks...technical info coming out of his ears.... Joebop, it’s a pilot for a reason as you say...let’s just wait to see the results. Everything can be done in the right way or the wrong way. Past failures do not mean they will be repeated as it is the same with past successs. We will see what happens. I am positive, time will tell if I was just hopeful or not. Cheers