Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Hi SRS
Was more than just normal rain , this was unprecedented
https://www.ccrif.org/sites/default/files/publications/20181018_CCRIF_XSR_EventBriefing_TTO-TRI_CARE_20181026_Final.pdf
Look
At slide 6-9 in particular
Look at photos through the pdf too . A lot of flooding.
They did well to keep production going.
Look at it this way.
If Leo did not do what he's done with steeldrum acquisition and others and let's just say all we had was Goudron with its mediocre output before Leo joined .
So he has done two things he increased Goudron production ( okay not as much as was hoped and expected due to sand and drop-offs but still increased production )
Plus acquisitions .
Now imagine the rain is hitting before Leo joined . Production would've been in the tens of barrels Not hundreds as was the case even during the floods they still managed to produce from the other assets which Leo had taken over .
Morning Lockedin.
Completely agree woth you there.
I was also recently thinking that extra news was needed but actually I'm now going to think back to the days when I used to check share prices on teletext channel 4.
Those days people
Held shares for long term and I would often see a fair few rising and large jumps too.
Of course there would be fallers too but people generally had more patience and help with a long term view not just 4-6 months.
What intrigues me is the fact BPC now have a MC of 30m and 1.5 billion shares in circa.
No production, licences only . They did have interest from a major a while back in their
License propelling them to
7 p. The major pulled out for whatever reason , maybe they didn't see any potential with BPC.
My point is they are much higher in MC not many licences .
We have production , reduced debt, a lot more licences , increasing production, M&A upcoming and also massive potential game changer with SWP. Yet we are lower than BPC. I will never understand the markets way of valuing things. BPC only had news of license extension and only until 2020 and they rocket.
Personally I think Leo's plan is working in what he wanted and stated.
He wants rid of day traders and sorry term traders . He wants to turn this in to a big company and will do too.
He isn't fussed about day to day month to month declines even though he and other board member are being paid half in shares at 5.1 p.
They are imporoving the company they are moving us forward and will continue that way.
Short term or fed up holders are bailing but watch this space when big news comes and attracts manybe more IIs then serious buys will appear in the 260k 500k 1000000 too
News is taking time but when it arrives I'm sure it'll be big and worth it worth the wait.
AIMHOC
* Icacos
* Icacos Oilfield and License Area (Columbus, 100%*)
* The Icacos Field has been producing at 20-24 BOPD in 2018 from three active wells.
* After agreeing to acquire Touchstone Exploration’s 50% stake in Icacos in early 2018, as well as taking over operatorship of the field, Columbus now owns 100% of the License and is planning a well-work programme to increase field production and investigate other oil shows on the license.
* The License Area consists of 1,960 acres onshore, producing since 1960
* Icacos Field average production of 20-24 bopd
* Partial coverage of the Licence by existing 3D seismic
* The Icacos License along with the Cedros and Bonasse areas forms a continuous acreage in the South West Peninsula of Trinidad
* Shallow oil shows from drilled wells to be considered for target testing and drilling.
* Additional development potential and possible deeper reservoir targets
*
* Inniss Trinity
* Inniss-Trinity (Columbus, 100%)
* The Inniss-Trinity field was acquired in mid-2018 by Columbus through the acquisition of Steeldrum Oil Company Inc.
* The Inniss-Trinity field is a legacy field that has already produced a cumulative 23MMBO since being first developed. Since taking over the field from Petrotrin in 2014 under an Incremental Production Service Contract, production has peaked at over 220bopd. The field has the potential for further improved recovery through enhanced oil recovery methods including CO2 injection.
* The Innis-Trinity field is a mature field producing from Herrera turbidite sands Current reserves are 4.0 MMbbls.
* Combined planning of well optimisation, well reactivation and stimulations with ongoing Goudron operations is occurring, including the benefits of active joint inventory optimisation to fast-track positive gains and reduce incremental costs.
* The facilitation of the planned pilot injection of Carbon Dioxide (CO2) as an Enhanced Oil Recovery methodology suited to the Inniss-Trinity Field is actively being planned with Predator Oil and Gas.
* Produced 23 MMbbl to date
* 4.0 MMbbl of remaining recoverable reserves
* Can benefit from similar productivity enhancements as applied in the Goudron Field
* Predator Oil & Gas Limited are party to a farm-in agreement whereby they have the option to purchase Columbus’s interest in Inniss-Trinity for a consideration of US$4.2m.
* Approx 5,769 acres (810 acres – field) and producing since 1956
* Average production 175 bopd in 1H 2018
* Potential for additional production through reactivation, recompletion and tertiary recovery methods
*
* Snowcap
* Snowcap Oilfield Discovery (Columbus, 83.8%)
* Snowcap provides an exciting, low-risk new development opportunity which can add significantly to Columbus existing portfolio of production assets. The Snowcap Field is thought to contain 1.8 MMbbl of reserves.
* The Snowcap-1 well was drilled in 2010 and a flow test performed in Febru
Why?
* Bonasse
* Columbus believes Bonasse Field rates can be improved through a combination of stimulation and low cost infill drilling
* The Bonasse License along with the Cedros and Icacos areas forms a continuous acreage in the South West Peninsula of Trinidad in which the Company has a 100% interest*
* The Bonasse acreage contains multiple exploration leads and prospects mapped from existing 3D seismic
*
* Cedros
* Cedros Leases (Columbus, 100%*)
* Located between the adjacent Bonasse and Icacos License areas within the South West Peninsula
* The Cedros leases cover approximately 1,750 acres
* The Cedros Leases along with the Icacos and Bonasse areas forms a continuous acreage in the South West Peninsula of Trinidad
* Prospective and underexplored acreage
* 3D seismic data available
*
*
* Cory Moruga
* Cory Moruga License (Columbus, 83.8%)
* The Cory Moruga Block was acquired in mid-2018 by Columbus through the acquisition of Steeldrum Oil Company Inc.
* The Cory Moruga Block is located along the western flank of the Rock Dome Anticline, north of the Moruga West field and west of the Inniss-Trinity Field. The recent Snowcap discovery has opened up further development opportunities along this prolific structure.
* 7,443 acres
* Snowcap-1 discovery made in 2010 by Parex/Primera
* Declaration of Commercial Discovery acknowledged by MEEI in 2016
* Field Development Plan for full exploitation of the reserves is in place
* Additional potential from possible deeper targets
* Goudron
* Goudron field (Columbus, 100%)
* Goudron is a high-quality oil-field which lies between the East Moruga and Beach Marcelle fields in south-eastern Trinidad and has direct access to the Petrotrin oil export pipeline.
* Columbus continues to seek to optimise the field’s production. One such production optimisation technique is through the Company’s Waterflood “A” Pilot project, where the Company is injecting around 1,000 barrels of water per day to seek to increase production. Initial results have been positive and have confirmed clear signs of connectivity between reservoir bodies.
* Discovered in 1927
* Developed by Texaco between 1956 and 1986
* Exceptionally high-quality oil in a shallow reservoir
* Cumulative recovery of under 6 MMbbls
* Production average of >500 bopd in 1H 2018
* Existing stock of over 100 wells drilled between 1930-2017 available for application of enhanced recovery projects
* Waterflood Pilot “A” is underway commencing in July 2018
* Long term strategy for field re-development is to realise production growth potential to above 3,000 bopd through application of EOR techniques including waterflooding.
Ha ha , Sorry Sergeant, I got you mixed up with Colonel Drake.
Would you agree with any of the points I made in my lengthy reply to you about trades etc.
Afternoon Colonel,
I agree about the fact there has been disappointments. Not Leo's fault about Goudron as initially the wells looked amazing on the October 2017 webcast.
Well done on your 4p exit. Great considering where we are now . Yes I wish I bailed at 8 too but no crystal ball.
Credit where credit due and back in the days when I used to converse with Ross I gave him credit when he was right about NR.
You say you should have listened to Ross this time around. I don't think you would have been saying that if the Goudron wells outperformed as initially thought. If they had then we would be much higher than where we are now.
So the Ross whatever he has been saying ( I don't know as he's been filtered for a long time along with the others, I don't hate them as I don't know them personally I just hated the way they wanted myself and others to fail miserably which I found strange considering they weren't even invested. So I came to conclusion just spiteful really.
I'm sure the Ross has never got every call correct and got lucky this time round. Yes credit about NR that was good call but this time was lucky imho if that's what he said to you about bailing at 8 because it'll drop to 2.5 p.
With regard to patience , well that's something I have always had in abundance ( not always the best thing but sometimes it is as it is here with CERP LK and team).
Well done on buying back in low.
No there is no guarantee for anything stock including CERP . But then there would be no stock market of everyone thought that as there is always risk but take the risk and reap the reward .
This is far less risky than when LK jumped on board.
Even if the next update is not what the market expects it's the quarter after that that should be the game changer with M&A and swp spud.
They will move more toward enhancement too on non IPSC better bang for buck.
Aimho course .
Still think though that sp is here because of vast selling over whole year and lack of major buying apart from BiGMJ but even his trades got swallowed up with sells .
So until sellers go then news comes of good news I'm sure some of those sellers will want back in too.
Selling: This has been ongoing for just over a year that I have noticed anyway.
What's strange to me is no holdings RNS. There has been 10s of millions of shares dumped over the last year and not a whiff of from who?
So it must be multiple large sellers with a few smaller PIs thrown in for good measure. Any large purchases just get quashed /countered with sells. So this is the reason imho for the low SP. Buying has been very very slow this past year and daily totals have been poor at best.
The seller/S want out but there just hasn't been enough buys to let them out faster hence when nice rare big buys do appear they evaporate under sells. The MMS know this and lower the SP. they will make money at low levels they will make money at higher levels it's what they do.
I'm sure once the main seller has cleared they will raise the so once more and sell millions to new or existing holders at a higher price than now.
Imho today's SP really is a stonking purchase price and as Arry mentioned earlier the fundamentals are very solid and much improved from when LK jumped in the hot seat .
A great job to date from management . A lot of potentially transformational major news to come over next 4-6 months
Morning Mr Magoo ,
And what that article does not mention is that a potential buyer of the company will be getting absolute vast potential with what lies beneath Goudron.
Old CPR 800 MBO IP
New CPR 1.3 BBOIP
3% REC
With waterflood probably 5% possible and with CO2 maybe even more than that .
Also don't forget since the earthquake that they had that quite possibly could have released a lot more oil in Goudron since the last CPR .
I haven't even touched on the feeder further below Goudron.
The API is so good and in Leos words you can put it straight into your car .
That kind of oil should not theoretically be that good quality near the surface and should have had bacterial and quality detrimental affects .
The feeder below is bigger than Goudron itself.
So imagine excellent API in an area that's much less tighter than Goudron .
So here's some figures for me to scratch your head and think about
Below Goudron :
My CPR ( not that I am so competent lol)
2BBOIP
Let's give it a 10% recovery and it could be much higher than that 15 to 20% at least .
But let's stick to 10 for a conservative figure .
So a recovery figure of 200 MBO with outstanding API quality.
That could be the feeder to Goudron .
So when the company is to be sold off I really think the management which they probably will but they should include that to any prospective buyer .
Yes they will have to clear more area as it is overgrown but it would be worth it in the long run or whoever drills down and will hit that jackpot .
I wonder what BOPD and a natural flow would be I'm guessing would be in the thousands and much more free-flowing and not so tight As Goudron.
But if management can put that in to a takeover candidate then if SWP is a success and any M&A beforehand this could well go above 500 MC and a takeover offer far higher than that .
Remember GKP in Kurdistan Think of our 14 prospects we have and also what lies beneath Goudron.
Columbus could be enormous by the time Leo has finished .
It could be he will underpromise and over deliver with the eventual target of 500 MC .
Very True.
There has been a large consistent seller for just over a year now.
Relentless selling. No holdings RNS though.
Good morning ,
One positive thing is that any monies that are not in ISA with the share price this low will allow me to move a good part of the quote over, April 6 if we remain low enough. Then the whole investment is tax-free . There's always a positive and if we remain low good for that and if not then never mind as we will be making money .
Really looking forward to Columbus Energirs future :
- Waterflood results
- Predator co2 results come summer. Half production to Columbus or maybe $4m to us for buyout.
- infill wells and enhancement BFB over entire field
- South Cory EP
- M&A - maybe Suriname?
- SWP potential transformation drilling commencing June/July.
plenty to look forward too and that's only for 2018...:-0
Look at MATD sp 1.6 to 5.9 in 6 weeks
So what can CERP do during 2019 and 2020? Watch this space.......
If you're not loaded up now then now is quite a good time anywhere between 2p to 2.5 I think about it even 3p 3 1/2p are fantastic levels as none of us really envisaged those being reached. The last raise there were many complaints
about The discount given that look how much more we are below that so really now is a fantastic time to invest
Imho. Or just average down like I and others been doing over the last year .
We really are on the cusp of something quite special thanks to Leo and team .
Hi Peter, :-)
Time my friend .
We are already in the T19 although it hasnt started yet but it will.
Look at MATD 1.6 now 5.3 only on news of drilling in summer. That rise over last six weeks or so.
Ask yourself this, what SP in 4 months time leading up the spud .
Hi Peter
Just to give you the one example that I mentioned in a post to discoverer.
The deal that Leo said last year that would be complete by end of 2018 . That didn't happen so that's why it's a good reason not to give timeframes on things but instead just let them play out then we can all be surprised by a nice RNS.
If Leo put out a good RNS over the course of the next three weeks and it was a brilliant deal we would soon forget about timeframes and what we weren't told or given previous RNSs. And the share price would be motoring no doubt .
All in my opinion of course I'm not inexpert far from it but just seems to make sense to me .
Apologies for typos my bloody iPhone has a mind of it's own :-0
One line should have read " due to pressures depletion and sand issues "
Good afternoon Disc0verer,
I can understand Peter as I'm a close friend of his and as investors we all have different timeframes of being able to wait a long time or not.
I think he is just really frustrated as it seems like paint drying from his point of view.
Of course for many of us it can seem like a long haul but for me personally this has not been a long wait at all .
I was involved with a company called PVR Who were promising farmouts continuously and that went on for about eight years until finally they got into bed with a Chinese company .
So after being involved in some of the companies that I was in that we were truly the snails of AIM my timeframe is for a couple more years at least but I may top slice at the end of the year due to possibly needing the money if the SP is at the right price.
I can completely understand what you have said about the team and it's not always possible to put timeframes on due to these being changed more often than not whether it's down to government local government or T&Cs with third-party companies .
It would look even more unreliable if timeframes were put onto everything only to be broken then there will be so many more disgruntled people .
I think Leo given the circumstances and the crap that he was left with has done a brilliant job along with the team .
Goudron was a massive letdown and disappointment for Leo and us after the initial euphoria back in October 2017 on amazing performances only to let down after do you too well precious sand issues amongst other things .
All is not lost there as the waterflood as the management mentioned has been charging the Wells and initial results are looking good.
Personally for me I have lost a bloody fortune by my standards over the years as I mentioned in an earlier post today some of my own fault some of it piss poor management and other companies and some of it pure bad luck with the BP disaster then Isis in Kurd.
But I do believe persistence place and I think this really has been my last hurrah or heard all in the markets and I've put absolutely everything into this company because that's the faith I have in Leo and the great team to turn around and help me make amends for all the losses over the years including massive ones from LGO and other companies .
So with regard to Peter I know he is such a great gentleman and he has also put his faith into Leo and team.
One of these days rodders ....... well I don't think it will be quite that for myself but I will just be happy to make up from previous woes .
One good reason why I am against timeframes is because I remember last year Leo talking about a large deal to close by the end of 2018 and as yet that hasn't happened and I'm guessing that's probably due to complications or the complexities of doing such a deal signing off the small print getting agreements from governments who may be involved Etc so timeframes using that example are useless really
Very very like minded CD . Nice post.
You can buy many here if you wanted and this isn't multi billion circa.
Morning Diggit,
Congratulations on your purchases.
All shares bought now will do well but also help LT sufferers like myself as your buys will take a few more off the table of floating shares.
I'm now over £300k down ( sipp and share cash account) overall on everything in my time of investing . A lot lost on PVR MTA other shares too smaller amounts some PCI large amount log now CERP too, astonishing amount of bad luck along the way combine with my poor investment decisions and some really really crap directors)
LK et al are different league / class and will deliver .
I managed to bring my average down a little this last year with CERP on cash A/C
I really believe Leo and team will erase most if not all of my losses over next two three years.
Anyone buying now imho will do well .
ATB everyone
Morning Neon,
Yes that's right I remember when he did that too.
Hi Peter
According to Leo last year he stated " A deal 10s of millions deal should be complete by year end" 2018
So that's overrun wihich TBH is no surprise because it's so hard to say a definitive deadline due to deal making complexities and small print T&Cs.
It should happen very soon according to Leo as he stated recently . Should close very soon.
Last year earlier in 2018 I'm also
Pretty sure he also mentioned about a£100m deal which he expected to be closed by end of 2018. But it sounds like that might have been watered down to 10s of millions.
There have been many colour deals banded about and we should see another soon .
Completely agree with you there LTID