CERP.L Regulatory News (CERP)

18 December 2019

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Second drawdown of US$1.5 million under Medium-Term Funding Agreement

Columbus, the oil and gas producer and explorer with operations in Trinidad and Suriname, is pleased to announce the drawdown of an additional US$1.5 million ("Tranche 2") under the Convertible Loan Agreement (the "Agreement") with Lind Global Macro Fund LP an entity managed by The Lind Partners (together "Lind" or the "Funder").

As announced on 11 November 2019, the Company entered into the Agreement to provide access to additional funds, should they be required, to:

·; assist with costs arising from the drilling of the Saffron well in Trinidad;

·; enable Columbus to fast-track the appraisal and development of the Saffron prospect following any discovery; and

·; provide the resources to fast-track planned technical and operational activities on the Weg Naar Zee licence in Suriname, including development of the field following the extended well tests.

Further to the announcement of the Company on 12 December 2019, the Company is drilling the Saffron well in the South West Peninsula ("SWP"), Trinidad. The second drawdown under the Agreement is a precautionary measure to ensure the Company can focus on completing the Saffron well in a safe and efficient manner, whilst also enabling the Company to move forward quickly to optimise the potential of any discovery on the Saffron well.

The main terms of Tranche 2 are set out below.

The Company does not expect to drawdown any further amounts under the Agreement in either 2019 or 2020.

Leo Koot, Executive Chairman of Columbus, commented:

"The Company is currently drilling the Saffron well. As with any drilling campaign, it is prudent to have sufficient cash resources to complete the well safely and efficiently and without compromising the objectives of the well. Drawing down Tranche 2 under the Agreement allows us to do that and also allows us to monetise it in the event of a successful discovery. I would stress again that the Company remains committed to finding the lowest cost options for appraising and developing its assets and looks forward to updating the market as to the results of the Saffron well in due course."

Tranche 2

The main terms Tranche 2 are as follows:

·; Repayment over a 24-month period.

·; Repayment, at Company's option, either in cash or Company shares (or both). The monthly cash payment for Tranche 2 will be US$74,222 and any shares issued would be at approximately 90% of the then Repayment Price.

·; The Funder has the right to convert any loans outstanding into Company shares at a fixed share price equal to 130% of the Company's 20 day VWAP prior to signature of the Agreement (approximately 4.4p) (the "Conversion Price").

·; Company has the right to buy-back the outstanding balances (the "Buy-Back") at any stage during the term of the loan without penalty, although the Funder has the right to convert up to 25% of the Buy-Back into Company shares at the lower of Repayment Price or the Conversion Price.

·; No up-front commitment fee or other fees are payable.

·; For Tranche 2, the Funder has received 16,861,207 share options, which may be exercised within 60 months at a share price equal to 150% of the 20 day VWAP immediately prior to drawdown. For Tranche 2, the exercise price would be approximately 5.1p).

·; The Funder has the right, upon certain terms and conditions being met, to re-invest up to 50% of the Tranche 2 amount on similar terms and conditions.

·; No additional Collateral Shares or security other than that already granted under Tranche 1.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Contact Information

Notes to Editors:

Columbus Energy Resources Plc is an oil and gas producer and explorer focused on onshore Trinidad and Suriname. In Trinidad, the Columbus Energy group has five producing fields, one appraisal/development project and a highly prospective exploration portfolio in the South West Peninsula ("SWP"), which lies in the extreme southwest of Trinidad and consists of stacked shallow and deep prospects. In Suriname, the Company has recently secured an onshore appraisal/development project. Columbus aims to create transformational growth by developing its portfolio in a capital efficient and disciplined manner.

Columbus is guided by the following core values; safe and sustainable, stronger together, creative excellence, positive energy, totally trusted and personally responsible.

The Company is led by an experienced Board and senior management team with supportive shareholders and intends on leveraging its expertise and experience to build an attractive and diversified portfolio of assets across South America in order to build an oil production led South American exploration business. 

To find out more, visit www.columbus-erp.com or follow us on Twitter @Columbus_ERP.