Member Info for Rugby2015

LGO-fan, we just have a difference of opinion which is fine but thanks for your explanation. I actually do think that LK tries to understate and over deliver but it just hasn’t happened but I would still like him to state his honest opinion, after all he has all the information at his disposal so it’s his opinion I value above all others. When he gave his forecast 12 months ago for EOY production he also stated he had built in a couple of buffers because something unexpected usually happens. In 2017 it was power outages after a storm that seriously disrupted production. He has met his target of 900-1600 this year, it’s just more towards the lower end than he would have liked. A few at the time said they would be happy with 700 bopd (I think you were one of them) which is great because as you said at the time if you don’t set your sights to high then you won’t be disappointed. Production numbers is an important headline but cash is king and with some of the wells producing nearly twice as much profit as Goudton actual revenue numbers are even more important. All quiet on the water injection front, this will take affect and deliver an increase in bopd, it would be a nice Xmas present to us all if it kicked in now. I think most of us invested believe this will come good and it is just a matter of time. Last year we had Goudron and minimal production from Bonasse and Icacos producing 565 bopd, 12 months on we have ‘around 1000 bood’ from 6 fields, a water injection that has been in operation many months, and a firm committment to drill 2-3 wells next year as well as plans to increase production on all our current fields. Not to mention M & A that are ectiveky being sought. Besides the SP, which will come good, I think we are a good place. GLA

Average production Q4 925 bopd, peak 1070 bopd, evenues up due to increased production and POO despite the recent drop in oil prices. The Lind facility IMO won't be used because Columbus are not desperate for cash, they even considered paying up the old Lind loan, hardly the strategy of a company struggling for cash, the Company's cash discipline is to be admired as is LK's reluctance to take in debt. Why saddle the company with additional monthly loan payments of $67,000? The 2 x It's and Big MJ did not come forward to offer funds because they like investing in failing companies. Yes the SP is rubbish just now, no arguments about that but I believe the very experienced management and work force are steering the company towards bigger things. I respect their opinions but disagree with Offer an and LOG-fan when they are wanting LK to be more cautious in his predictions, I don't want that, I want him to be totally honest and upfront and say what he believes. This time last year he said low case 900 high case 1600 so he will have achieved his target but warned mid year that Goudron had it's problems with sand and the pumps not being able to handle it. It's disappointing but it's within his target range and a big improvement on last year. Onwards and upwards! All just IMO

Finally, commenting on the group's reconstruction of its share capital and share premium account - ' This change allows Highlands to be in a position to provide shareholders with a distribution should excess revenue become available

Reference the pilot programme with cannabis plants 'the value uplift of being organic is far more significant ' and 'assuming the pilot is a success then Highlands anticipates sales in far greater volumes,' and capturing a small percentage of the market would have a significant impact on the Company's revenue' Carbon Dioxide - The directors have commenced discussions with a range of potential end users of CO2 to fund any drilling activity.' Financial Review - we know the revenue from the 8 producing wells will be reflected in the 2nd half of the financial year but commenting on the restructuring of it's management team ' the financial benefit of this reduction in payroll will not be fully apparent until the 2nd half of the year.

East Denver - 'flowback from all 6 new wells is expected this months and ' we anticipate producing from a total of 8 wells by the end of December.' ' We hope this represents just the beginning of the value creation for our shareholders. ' Furthermore, we continue to explore avenues to expand the project further.' With reference to Nitrogen-hydrogen Suply for Agriculture ' This is potentially a very significant find' and commenting on the application for a certified organic classification of it's gas mixture ' Obtaining this certification will be invaluable for access to the agricultural industry'

Another quiet day and very low volume. HD produced a great summary yesterday which I cannot match but I offer some direct quotes taken from the recent Interim Results dated 13th Dec 2018. ' East Denver - from the end of this month we expect revenues to be more than sufficient to coverv overheads for 2019.' No caveat of if POO remains above $60 for example and the key words for me are ' more than sufficient'. Reference Kansas nitrogen discovery - ' we anticipate further positive developments over the coming months.'

In4cedros - thanks for your reply. Our understanding is pretty much the same it’s just the actual range that varies by $5. I think $50-$60 and you $55-$65, we can both agree that getting WTI back over $70 is good for CERPS finances. Maybe an OPEC decision soon to cut production will get the ball rolling.
Interesting what LK on video said (Faz posted the link earlier) about the other II being very well researched and believed oil price would reach 3 digits in Q1 2019. Let’s hope so, a WTI around $90 and production in excess of 1000bopd will kick off the New Year nicely but if we have to wait until the end of March, that’s good too👍

In4Cedros - can you elaborate a bit more on ‘ the sweet spot of the cobtract’. My understanding was that due to the contract it made no financial difference to the company once WTI was over $50 until it reached over $60. Therefore, now WTI is under $60 no panic as it drips lower but of course the nearer it gets back to $60 the easier it is to go past $60 and so will be of benefit to the company. I don’t understand your statement that LK will be pleases to see a few dollars more knicked off WTI. Genuine question to seek clarity. Thanks.

Jcgswims - thanks for providing the link. A lot of good information there and a reminder of recent progress and future plans. Easy to sign up to VSA to access, recommended reading for all investors.

Great story - thanks for sharing!

Good post Bamps21 and I think most people can see that. Even the ones that were unhappy with the placing might have had their angered curtailed a little as the SP went blue and finished the day 9.3% higher. Clearly not taking up the Lind debt facility makes the balance sheet much stronger as paying back $67k each month for 2 years is quite a burden. I think in 12 months time the company will be in a much better place just like it is now from 12 months ago. LK mentioned a while back he would be drilling a producing shallow well in Bonasse first of all but after the Steeldrum acquisition priorities might have changed. He has all the facts at hand so for me he can chop and change his mind as much as he likes if changing circumstances dictate. I don’t feel deceived, the no placing always carried a caveat and those very profitable extra barrels of production are just ripe for the taking and I see no point in holding this up.Sentiment feels a little mixed but positive overall, progress is being made, production is rising and as the SP
Heads towards 5p I think a bit of FOMO could drive it higher quicker them most seem to be thinking - let’s hope so!

Many thanks for all your research and input over the weekend HD. Very informative posts which are really appreciated by many, I’m sure. Top man!

For the Q&A you reported back to the board. There was very little information from the presentation so I am sure many like me are very grateful to you for taking the time to report back for the benefit for us all. As I’ve said before the only thing wrong with the company is the SP, I think we can all see the progress the company has made since LK took ivercas CEO and we can all see the massive potential going forward. I have no more funds to invest at these low prices but I was happy with my buy in SP at the time but like us all will be even happier when it’s well north of here. I still believe masive progress will be made in Q4 so I do think the SP will be higher by year end.

Spain is costing the company a lot of money, there is no question about that but following the redundancies and Spain been in a state of care and maintenance monthly costs have been reduced from €60k to €15k monthly. The $400k quarterly cost of Spain is more than expected but is explained in the Q3 report. As I read it the ‘$170k of taxation payments to the Spanish authorities relating to the staff redundancy process undertaken in Q2 2018 and a further $150k placed in erskow relating to a a historical legal issue which the company is challenging’ is part of the $400k and not additional to it. That leaves $80k, minus the €45k for Q3 care and maintenance which leaves less than $30k to account for. To anyone who attended the presentation was Spain mentioned in detail or any Q’s asked? What we do know is the estimated costs for Spain this year is $1.5 million which will be far less next year. This money will be put to good use in Operations as will the extra revenue received Q4 from increased production and the increase (so far) in the POO. Leo Koots money wheel is in operation and I am looking forward to accelerated growth in Q4 and exceeding his end of year target of 1000 bopd with much of these extra barrels proving twice as profitable than the production under the IPSC licence,

Both have taken a backward step this week but historically they haven’t been linked. WTI has not dipped below $70 yet this month so that is positive.. I never imagined the SP to be this low this year and while we all would like to see it higher it only really matters if you are wanting to sell. If your wanting to buy then you have a great price IMO. Still waiting to watch the presentation, hope it’s loaded onto the website before the weekend.

‘It is taking much longer to get where it is supposed to be going IMO’ - based on what? At the start of the year the production target was to exceed 1000 bopd and although we are not there yet we have over 2.5 months to go. Seems to me he’s on schedule to arrive where he said he’d be and when he said he would get there.

From tonight’s presentation would be very welcome if anyone has chance to type in any information

Where is this extra production coming from? No need to ask LK tonight as I am sure he will detail this in his presentation tonight. Let's assume the pilot water injection plans wont make a positive contribution to production by year end (but they might!) This is from todays RNS:
1. 'We also plan re-starting the Snowcap 1 well before the end of 2018. We believe this will achieve a quick production 'win' for Columbus towards the year end production target
2. 'The company will now focus on growing production and revenues in Innis trinity and South Erin'
3. Bonasse - 3 wells (3,5 & 10) were reactivated to add to wells 1-2-4. Additional productivity stimulation is planned on these active wells in addition to planned reactivation of wells 8-9-11. (We only had 3 producing wells, by year end we could have 9
4. Snowcap field - Columbus plans to commence production as soon as possible. Columbus is also considering other drilling opportinities on the Cory Moruga Licance, South Erin and Innis-Trinity. Further updates will be announced in due course
IMO his enlarged workforce are experienced, organised and well structured and will make significant production gains before year end. Finally, 'the company continues to work actively on a number of acqusitioin opportunities in Trinidad and elsewhere in S.America. The key word for me is 'actively' and I am expecting an announcement before the year end. Good luck to all invested and enjoy tonights positive presentation

IreneKrapp - nobody's interested in losses from 10 years ago, we are only interested in the new company CERPS, the new BOD headed by LK and the progress they are making on their 3-5 year strategy. We are keenly following his road map and I think so far so good. From when he took over CERPS is now a bigger company, have more producing oil fields (all of which are cash positive), production is growing, investment is growing but cutting costs too. He is building a large company, nobody expects profits today as cash generated is put back in the business to generate even more cash but profits will come further down the line and the market cap and SP will be much higher than today. It's not a 'jam tomorrow' scenario, its not an aspiration or a dream, its a well thought plan formulated by a very experienced CEO and his BOD and one I believe in otherwise I would be gone.

As the effective date of the acquisition was 13th July and the Company's 3rd Q figures were being reported then isn't it just logic that the production numbers would be grouped together? I noted the slight change in terminology when it was stated 'this has allowed a target-based approach to be adapted allowing peak rates of 1000 bopd to be set by year end. The same RNS also states 'Group remains on track for production from Trinidad to exceed 1000 bopd' and 'we can see many opportunities for achieving quick production growth across the new Columbus portfolio with the objective of exceeding 1000 bopd in Trinidad by end of 2018' so again I don't think this is a big deal. I've been confident all year that the 1000 bopd aim/target/objective will be easily exceeded and with 751 bopd announced today for Septembers average I remain very confident. Gross revenues were up more than 25% and this was due to production increasing by over 20% as the average sale price was only $60.90 (Q3) compared to $60.00 (Q2). We are curently increasing production and a 33% increase in Q4 on Septembers production average will reach the group 1000 bopd target. Q4 average sale price is likely to be around 10% higher than Q4 (depending on POO) so revenue willl be miuch higher