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Morning Flow - Columbus Energy Resources
2020-06-01 04:25:00
Columbus Energy Resources (AIM:CERP)# Columbus Energy Resources (AIM:CERP) has announced the start of Phase 2 of the CO2 Pilot Project in the Trinity Inniss field with its partner (Predator Oil and gas (PRD LN).
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Columbus Energy Resources (AIM:CERP)#
Columbus Energy Resources (AIM:CERP) has announced the start of Phase 2 of the CO2 Pilot Project in the Trinity Inniss field with its partner (Predator Oil and gas (PRD LN). Following the extension of the IPSC CERP and PRD has now begun to inject further CO2 into the reservoir building up to continuous injection over the coming weeks. The steady build up should correspond to a positive impact on pressure levels and production and CERP indicates the potential for material increases in output. PRD was provided the project funding and CERP and PRD have agreed a 50/50 split on incremental production, once PRD has recovered its costs. We look forward to further updates and production impact results. We reiterate our Buy recommendation and 20.1p target price.
3-4weeks time for results
Regards
Limopete
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.
Lancygeo i can finally say at last this is a strong buy. Now lets hear some news on VSA with an update and price on Cerp.
Regards
Limopete
I really hope Mondays results will be positive for all us long term holders, but i just cannot see it.
Regards
Limopeter
Not feeling confident on this coming Mondays news at all, can't help it as we always end up negative.
I can only hope we get something positive on SWP upper lower and middle but just feel its going to be a total disaster.
Regards Limopete
LayLadyLay
If you have absolutely no material interest in CERP, why are you here then? I think personally you have an agenda and its not in anyone's interest other than yours.
Your a sad human being unfortunately this world has loads like you.....
willec
This will move shortly, investors will bye millions of these low shares soon for the future. This world wide problem won't last forever , fill your boots up now.
BOD have made heaps and strides since taking over and great things are happening with this company behind the scenes then after released in RNS's. So far all positive that's my take on Cerp.
Regards
Limopeter
bigmj
Nice to see someone as yourself see sense on markets, good one
Limopete
Agree
London74
You mean what year not what time :)
Regards
Limopete
Its only just been tested have patience, all of the rest of you same thing patience.
Regards
Limopete
Dazbrad
Taxidermy
Regards
Limopete
bamps21
Maybe the reason they won't communicate with shareholders is that they have a great surprise in store for us and don't want to spoil it.
Regards
Limo Pete
point
At this pint a miracle
Regards
Limopete
get_rich_quick Glad to see your happy with 6.9% i be happy with 609%
LimoPete
Shareholders and cerp may have a problem if our MC fall below US$25 million as stated in latest RNS
All in all Cerp has an amazing future with everything that's going on with this management.
Personally I think it's time for another top up...
Right to drawdown an additional US$1.5 million at any time, provided the Company's market capitalisation is above US$25 million ("Tranche 2").
· Right to drawdown an additional US$1.5 million provided: (i) the Company's market capitalisation is above US$25 million (currently approximately US$40 million); and (ii) the outstanding borrowing from Tranche 1 and Tranche 2 is less than US$2 million ("Tranche
Regards
LimoPete
Mr Mario
Question for you why have you mentioned on paragraph 14. Big Boys buy out at 80p per share...
Were did you hear that a buy out at 80p per share might happen and by which company.
Regards
Limopete
Hi Peter, share update from me put me down for 525000
Limopete