The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Good morning Faz,
Thank you so much for your kind words . I can only but echo back the compliments to you too , such a nice person open and honest and overall great guy . Absolute pleasure meeting you and look forward to the next time our paths cross .
Thank you to everybody else for your nice posts as well it's really very much appreciated .
I don't know what The ney sayers will be probably slating but I can't read as they have been filter for eons.
Up to them if they don't like me And don't like what I post , you can't please everybody in this world .
Sorry if posts all over the place
Signal
Keeps dropping in and out and I have banging headache :-/
Part 3
2nd workover rig on way from the states.
Co2much lower / beneficial to inject , 1 bottle water is equivalent to 500 co2 massive expansion.
- sept injecting c02 government have given go ahead certificate yesterday
- Trinity inn is ideal for co2 due to Herrera unlike Goudron etc.
- 12 prospects seismic two readied two drill Oportunties, 1st drill September .
- Whereas are large continuos fans they are tirbulites
- One drill 2200-
- Second drill to go to 4000ftnot 5000ft. penetrate upper and lower m cruse.
- 45% chance and 66% chance. Saffron and clover.
- Drilling to start start of September , will take 3-4 weeks. I asked Leo to lend me money to buy more shares. He laughed !!
- 1st well will cost around 400000
- 2nd well start costs 800000 drill to 2200ft and 4000ft . I stated costs down from 2-4 m Leo said because they know where they are drilling .
- P50 Could be 10 million REC barrels to Columbus .
- don't forget first 10m BO are basically free. Not taxes.
-
- Risks are crumpled nature of topology.
- Lots of instability on upper sections .
- Drill to TD to keep simple as possible moved service location to drill quick easy with rolls Royce rig
- Treating it as an exploration well
- If it's duster the company won't go under
- Clove well 66% Chance of success . Not so much p50 but easy to recover
- Next two three months building road to location can flow in to bonase facilities
- Have environmental permit.
- Now engineering technical work.
- Saffron prospect summary
- Add close to 80 million to companies cash box this is only the lower crusse and not upper .
- We will receive US dollars for this oil .
-
M&A area is in swamp area jungle . Is next to existing field .
Q: what happened with the four other country bids.
A: We lost 3 bids out of the four applications . But that's good as we are not greedy
They will address communication to shareholders and not just stick to one quarterly update .
Series of announcement to exploration campaign and M&A .
Thanks in4Cedros n all
Appreciate that.
Hi LGO
Ah bugger, sorry about that. LSE character limit
Here's the rest of it
- In October 2018 I raised the question about key personal and retaining them. You mentioned at the time that you were working hard on this as it was an issue to retain all the skilled workforce but inevitably some were lost to overseas. How has this been progressing since then , has it been resolved ?
- A: Yes , since then the workforce has been strengthened . There have been redundancies and new recruitment . Michael is the guy that overseas this and it's about matching key personnel to the relevant roles and attitudes.
-Q:As everyone knows there has been great unrest and uprising in Venezuela , I saw media reports about pirates to affect T&T fisherman and other communities based in SWP, Has this has had any detrimental effect in any way to our operations with hardware or personnel.
A: Leo: no , it has not had any affect on our area. Stuart can explain more as he has lived there for the last two years.
Stuart: the police are monitoring the areas. The areas are pretty remote as well and not many people live there.
- Q: can you give us any indications that there are any signs by the TNT government to renegotiate the SPT terms in order to stop crippling us in the dead zone over 50$pb at Goudron .
- A: Leo was surprised and mentioned that negotiations are in progress.
- Q: so if we can get better IPSC terms then will we revisit the Goudron wells that needed to be cleaned up but worthwhile this time round due to better returns PB.
- A: Yes we certainly would look at revisiting these wells to increase production in that case.
-Q:How long do Directors and management intend to keep taking 50% salary in shares ?
A:Leo: it's up to each individual director but I will be continuing with this.
I also want to buy shares in the open market but as we are in a closed period I'm unable to at the moment . Once the M&A in South America is through I will then be in a position to do his.
-:Q:Would Columbus consider deepening one of the wells already on Goudron if seismic showed a substantial extensive reservoir beneath as previously indicated by yourself. Surely wouldn't this be a good idea to add this onto the list of our assets and monetise it when looking to offload the company. I could be wrong but to me it seems A bit like selling a property with planning permission giving that extra value.
A: Yes we would look at this but we have so many other opportunities near term in comparison . Let's hold that thought there as I will move on to SWP slides soon.
Q:How do you see the roadmap progressing , are we still on target for the initial 3 to 5 year plan 500 Mc and offloading within that timespan. ?
A: Yes I see this if we
Make discoveries. If we find oil on our near term drill that could in itself bring an increase of 80millon to the MC.
-2nd workover rig on way from the states.
Co2much lower / beneficia
Brief summary.
Excellent AGM
Stunning prospects for investors with SWP ,
M&A very vey exciting too.
Great job to the team .
I personally believe a fantastic second half of the year ahead .
Lots of news to come .
GLA
Good afternoon All,
Have been writing up best I can on the train. Have bit of a headache so apologies of typos ETC.
Some of my questions were during the AGM and I managed to have a nice chat with Leo after too.
As ever , he is a true gent , I have total
Respect for him and Gordon et'al.
Actually managed to ask my questions fully clothed this time
Around :-)
Best CEO I have ever invested in. Total commitment , knowledge , tactics total gent , really nice guy.
Q:When will drilling start , September drilling . I asked will that be the start of September ?
A: Yes , start of September .
- Q: do you have a cap on the amount of shares that you are prepared to allow to be in circulation to reach the 500 million MC? If you do what is that And if you don't what are you prepared to allow the circulation of shares to go to I.e 2 billion 3 billion 4 billion?
- If we see fit we will ask shareholders permission if we feel the need to raise more shares but prefer debt option like a mortgage. Any further raises would be very worthwhile . ( I saw what they meant about worthwhile when I saw the SWP charts!!)
Q:Would you want to move off AIM
A: Yes.
- Q:how much water is being pumped in per day on the second water injector for the water flood pilot program. On 1st and 2nd injectors.
- A: it's split between the two , ( I'm sure Leo Gordon mentioned well over a 1000. I can't remember exact figure.
- Q:You mention there has been charging/ connectivity between the wells for the water flood pilot program. I understand that a second injector well has been implemented into the program. The oil as you mentioned is of such high API so near to the surface and the reason is because it has been fed from an enormous reservoir below bigger than gourdron itself. Is there any danger that the pressurising with water some of this water pressure could seep / be forced back down below into the large reservoir below that is feeding the surface. If these are indeed traps and they contain such good API surely there must have been channels where the oil seeped into these traps.
-
So my question is by adding additional water with pressure could this then be leaking through these channels back into the larger reservoir. So although charging is showing could it be the loss of pressure is not bringing it to the surface as envisaged so a second injector well might just increase the pressure to the resovoir below.
A: no these are traps, it's a good question but no that will not be happening. Leo did explain this in more detail ( I can't remember all but it should be in the video).
- I was to ask this question but someone else asked it (it was stated before that Capex can be offset against SPT. How much of the Capex can be offset against this tax ?
- A: 20%
-
- In October 2018 I raised the question about key personal and retaining them. You mentioned at the time that you were working hard on this as it was an issue to retain all th
Good afternoon All,
Have been writing up best I can on the train. Have bit of a headache so apologies of typos ETC.
Some of my questions were during the AGM and I managed to have a nice chat with Leo after too.
As ever , he is a true gent , I have total
Respect for him and Gordon et'al.
Actually managed to ask my questions fully clothed this time
Around :-)
Best CEO I have ever invested in. Total commitment , knowledge , tactics total gent , really nice guy.
Q:When will drilling start , September drilling . I asked will that be the start of September ?
A: Yes , start of September .
- Q: do you have a cap on the amount of shares that you are prepared to allow to be in circulation to reach the 500 million MC? If you do what is that And if you don't what are you prepared to allow the circulation of shares to go to I.e 2 billion 3 billion 4 billion?
- If we see fit we will ask shareholders permission if we feel the need to raise more shares but prefer debt option like a mortgage. Any further raises would be very worthwhile . ( I saw what they meant about worthwhile when I saw the SWP charts!!)
Q:Would you want to move off AIM
A: Yes.
- Q:how much water is being pumped in per day on the second water injector for the water flood pilot program. On 1st and 2nd injectors.
- A: it's split between the two , ( I'm sure Leo Gordon mentioned well over a 1000. I can't remember exact figure.
- Q:You mention there has been charging/ connectivity between the wells for the water flood pilot program. I understand that a second injector well has been implemented into the program. The oil as you mentioned is of such high API so near to the surface and the reason is because it has been fed from an enormous reservoir below bigger than gourdron itself. Is there any danger that the pressurising with water some of this water pressure could seep / be forced back down below into the large reservoir below that is feeding the surface. If these are indeed traps and they contain such good API surely there must have been channels where the oil seeped into these traps.
-
So my question is by adding additional water with pressure could this then be leaking through these channels back into the larger reservoir. So although charging is showing could it be the loss of pressure is not bringing it to the surface as envisaged so a second injector well might just increase the pressure to the resovoir below.
A: no these are traps, it's a good question but no that will not be happening. Leo did explain this in more detail ( I can't remember all but it should be in the video).
- I was to ask this question but someone else asked it (it was stated before that Capex can be offset against SPT. How much of the Capex can be offset against this tax ?
- A: 20%
-
- In October 2018 I raised the question about key personal and retaining them. You mentioned at the time that you were working hard on this as it was an issue to retain all th
Good afternoon Nov,
Well that's a very kind thing for you to say. Much obliged to you.
In all honesty though, I really appreciate your words on credibility etc, however, I really don't know so much or not that well
Connected any more than anyone else who has had contact with them .
In fact I'm a little nervous , here's a post I put on the other board today :
"Thanks CCR,
Will do. I'll try my best with the questions too, I'm not that well versed, literate nor a public speaker ( never been to an AGM either) but the need to know and find out that all our hard earned money is in good hands going forward will hopefully carry me through"
I have 11 questions I'm hoping to ask at the AGM but that might reduce or extend depending on what is announced first .
So here's hoping something good will come of tomorrow's meeting and questions from everybody including myself will be in attendance .
Of course I will post back both here and the other board on the meeting as no doubt Faz and others will too.
Thanks again Novykluk
Regards
OM
Morning Faz
See you there.
Many Thanks
Signed.
Continued ..
To adapt or change with the times .
Another good way to look at it is since Leo joined things have not all going to plan but look where we are we are a producer we have very little debt . We are on the cusp of good M&A.
We are producing less barrels but for the same money using less rigs which has to be a good thing especially when the oil-price was in the kill zone 51 to 60 . What really is the point in producing more just so it looks good on paper when the cashback is very poor .
SWP has a very very high chance a very high chance of success and that will be transformational and really put us on the radar . Of course there is no guarantee but it's pretty dam high chance .
The story does become clearer when you speak to them in person and it's not just them pulling the wool over our eyes .
It seems what ever they put out in an RNS Will more often than not be taken the wrong way by the market . Market was obviously looking at the decline in production per barrel output and not the balance sheet .
If the oil price remains higher out of the kill zone I'm sure they will increase back to 3 or four rigs and get the production numbers up for the quarter of higher oil prices . I would be surprised if they don't but that would seem like a logical step if that oil price remains high enough.
Things have taken slightly longer I agree but just because they've taken longer does not mean it's bad news .
It's actually very shrewd operational management with what they have been doing in the background .
They are managing they are moving forward they really do have our interests at heart as well as their own .
We are all in this together they are aligning themselves with us .
For the bashers out there or people that have lost the will with the company give them a call and find out for yourself.
They may well be a nice surprise in T&T in time but only time will tell .
I really do believe 2019 is going to be our year of transformation .
And God only knows the share price at the end of it on a successful SWP Result
M&A , negotiations , and a continued strengthening oil-price to bolster current assets in place .
Apologies for any typos it's so difficult on a tiny iPhone screen .
As always any doubts or any newbies just do your own research.
Good morning Bamps
Yes you are correct I am still extremely excited .
I'd like to say I had similar thoughts to you with regards to discussing Goudron etc.
But what has been good with Goudron is that whilst not everything has gone to plan and expectations it has still produced money and good money to enable us to be virtually debt free .
Goudron has only been a tick along cash base asset really. After the initial euphoria and excitement wore off about that prospect we all learned that the wells deplete so quickly.
Goudron is still good because it is still producing barrels and cash in the bank even if the PSC fiscal terms are not exactly a winner compared to other areas . Waterflood is still early days despite being ongoing for what seems a really long time now but we will see what the second injector brings .
I am really excited for two reasons having spoken in depth and meeting them in person and you can gauge a lot from a personal meeting and telephone discussions as opposed to RNSs.
You can tell a lot by the body language by the voice and also what is being spoken to you .
I will just say the two things which I believe will fundamentally change the company .
Leo joined the company purely for SWP . He did not join for for Goudron . Although there are massive prospects beneath Goudron as I have always been a believer in trying to investigate that further but they rightly so are targeting far more easily accessible assets in SWP . This is much further along than having to get permissions for clearing forest licenses and allsorts of things for beneath Goudron but in my opinion I do family believe that this should still be investigated at a later date in order to bank the prospects kind of like selling a property with planning permission will be worth more .
So it's SWP that I'm really excited about but I am really also excited about the dealmaking capabilities of Tony the experience of Leo and negotiating and also Gordon's financial management as well as the ability to raise money
I also like the fact that they don't just take any deal that comes along and they certainly don't get into silly auctions about deals either .
They know what they want they know what they're looking for and they are going to get this this year as well ........
Whilst on the face of it it can seem disappointing when statements are made and plans changed which has happened on several occasions to the disappointment of many including myself at times but when I really sit down and listen to what is told to me in person it makes complete sense you have to adapt you have to manage you have to move on .
That's exactly what they have been doing .
I guess it's like if I compare it to technology . If you take a High Street store that would still run in the same way with the same plans the same technology and never looked to adapt or change , that would have been the equivalent of us still only keepin
Last part as couldn't fit all on lse in one post.
Extremely exciting times ahead and prospects. They are building us up to be a fantastic company. The market does not always see the potential and misses things and often has to play catch up. It will catch up in my opinion.
They are not interested in dilution as they are also being paid in shares.
There will be a lot of news flow in my opinion for the rest of 2019". We are on the cusp, watch this space ...........
I am extremely excited with Columbus Energy and we really do have top experienced, very pleasant management across the board at the helm.
Any newbies, please remember do your own research have a look at the website, contact the people in charge anything you can if you're not sure. DONT JUST INVEST BASED ON MY POSTS.
I will be classed as a ramper by some. That's their opinion and well entitled to it.
Of course I am positive otherwise I would not be invested here, but there are very very good reasons to be invested. It's better to be invested in something I feel very confident with as opposed to moaning all the time about the Company, Personnel running it, or holders, without even owning any shares and wanting it to fail for all the people that are invested.
So newbies: DYOR please.
Good Morning Burnie,
Yes I did a little while back and ended up with a telephone conversation with Gordon Stein.
Please see below my post from other bb.
Good Morning All,
I have just come off the phone with Gordon Stein.
A very pleasant, open person on the phone as he is in person.
Many things were discussed, as well as questions and answers too as shown below:
Q: Forgive me if this is a daft question but unless I ask it I won't know. But is it possible that due to the large feeder beneath Goudron that water flood pressures could be lost and escaping into that reservoir affecting WF pressures?
A: No, These are traps that we are injecting in to. It is a shame that it has taken a while with WF but it's just not known how long a project like this takes. The wells are charging.
Q: Can you explain how the costs have dropped from 2-4m down to 500,000, is that purely down to the fact of sidetracking making it more cost effective?
A: The reason for costing much less is that we decided to start on a less risky start but instead in a known province....
Q: How will any projects in South America and the other applications be funded on success. ?
A: There are many other different ways of funding these projects , debt , bonds, ( Remember, Gordon is a very shrewd experienced CFO The man knows what is talking about and has vast experience in these situations).
Q: How would FFD be funded in the event of success on SWP.
A: There would be no issue with this as any success would be a game changer and attract significant investment should we go that route.
Again , There are several options available in the event of success.
Q: Would you consider buying more shares in the free market or is it a closed period?
A: I can't because it's been a closed period since last November.
Q: Would you consider deepening one of the wells at Goudron ?
A: There are better options elsewhere better returns per barrel on our other licenses. There is no point focusing on production totals if the returns are not there. It's better to focus on value for money assets even if the (production Barrels ) figures are less.
Q: how long do directors and management plan to keep taking 50% shares in salary?
A: We could stop after giving notice if we wanted too, but we are keeping ourselves aligned with shareholders.
My Summary from the complete discussion I had with Gordon:
"The company is exceptionally well managed, they are De-risking and moving forward . Extremely exciting times ahead and prospects. They are building us up to be a fantastic company. The market does not always see the potential and misses things and often has to play catch up. It will catch up in my opinion.
They are not interested in dilution as they are also being paid in shares.
There will be a lot of news flow in my opinion for the rest of 2019". We are on the cusp, watch this space ...........
I am extremely excited with Columbus Energy and we really do have top ex
Morning soup
Lgo meant 2018 and yes this was stated by Leo.
Part 2.
Silly with himself as clearly he is an enthusiastic and driven individual who sets high standard's and probably feels a little bit hacked off inside as he would have wanted more at this stage after two years in charge .
He does look more strained in the interviews but probably pressures of the job and maybe some differences within the company of how things are going maybe .
So my opinion overall . I still have full confidence and faith in Leo to deliver . Yes there has been bumps along the way with production At Goudron .
But taking the steel drum and other assets was a good move and when the rains hit Goudron really bad he was able to keep production cast rolling in with the other sets and also the fact that he set up the backup power generators that were just left to rot by previous management .
I have confidence that we have the right man in charge and he will deliver he needs to curb his tweets.
This year will be the year that we can truly judge him come the end of 2019 .
Aimhobwtfdik
Good Morning All,
Good points- Turning over the same amount of money at 600 BOPD then we would have been if extra BOPD produced. I completely understand focusing on bang for buck due to the kill zone oil price $50-$60 per barrel .
The statement of producing 1000 in order to be a major player is now no longer relevant because we are looking elsewhere to expand our operations with better fiscal terms .
We have secured an amazing deal of in the event of SWP discovery we won't pay any on the first 10 million barrels
Obviously full field costs will be there but the reward will be very handsome to the company all holders .
Water flood appears to be charging locally hence why a second injector has been added to the program
Debt is only 260 K .
We are producing too not just as an explorer raising and holds amounts of cash for a wildcat drill.
We are in a very healthy financial position compared to 2 years ago .
We are waiting for CO2 trials results With a potential 4.2 million cash reward Should the option be taken by PRD
There are still three years left of Leos Tenure to reach 500 million MC and a buyout which I actually think will be exceeded in terms of the amount we will get bought out for in the event of successful discoveries on the 12 to 14 identified structures .
A large M&A upcoming withiin the next two months
Bad points - 100m deal was to be completed by year end 2018 understandable to roll over if such a large deal and negotiations . But it's now April and nothing was announced about that deal so whether this next Suriname deal is of that magnitude we will see . Lots of colour deals where banded about before . So it would be good to get an update about whether these kind of deals and colour banding is still exist .
They have applied in for other countries for some sort of deal so assuming those will be the remaining bandings but time will tell .
Leo should cut down on the tweets which give false hope which really isn't fair to investors unless that was part of his plan which he spoke about to try and eradicate traders . Sucking them in on his tweets and then the price drop in afterwards in order to discourage them and get them to move to different shares . Maybe his tweets were part of that reasoning as he did mention he had a plan to get rid of the traders . Long-term holders won't be too bothered about short-term crisis movements although being a long-term hold of myself it is really frustrating and annoying to see us down at these levels as we want to see steady growth every year in the share price leading up to the long-term target .
I do agree with LGO that Leo does not look as confident and comfortable in his interviews as he once did . It's not to say he won't deliver but maybe there is a heck of a lot of pressure on him behind-the-scenes with other board members or just with the pressure of trying to get the deals through . He also proba
Hello Mike,
Really sorry to hear that . Hope it wasn't too serious and you're on the mend .
For all the shares in the world health comes first so hope you're back on track and thanks for sharing your opinion.
I felt the same about the tweets = expectations.