RE: Share..prophets17 May 2020 11:39
Columbus Energy Resources (CERP) has updated on the Trinity Inniss field in Trinidad and funding...
The news on the former is “receipt of Ministry on Energy and Energy Industry approval for the start of continuous injection of CO2” and on the latter the company “has decided, for the month of May, to continue to manage some of its third party costs through the issuance of shares under the Lind Facility and the Contractor Shares scheme”.
There is to be 22,546,803 shares issued, representing a 2.52% increase in the issued share capital, whilst it is stated “the CO2 project is an important enhanced oil recovery project for both the company and Trinidad… look forward to updating the market upon the commencement of continuous injection”. We noted that on our prior update on this – including also an agreement with Predator Oil & Gas (PRD) whereby Predator is to help plan and fund the project and has the right (until 30th September 2020) to purchase the company’s interest in the field for $4.2 million.
This is also with we most recently noting Saffron well oil discoveries, including on the Lower Cruse alone it “believe that the appraisal… expected in Q3 2020, will be stage 1 of a Lower Cruse development that we now calculate has an NPV of circa US$90m”. We concluded then, with the shares at 1.825p, there remains risk but also other possible catalysts and still a buy.
They are now above 2p, though still capitalising the company at below £20 million, currently around $24 million. However, to “carefully review the effect of the share issuances and whether it makes sense to consider its use in the future” and also having stated “in the coming months, we intend to finish our testing campaign and work with our partner to drill Saffron 2”, we continue to consider there catalysts to comfortably see the shares back to 3p+ and our stance remains buy.
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