Columbus Energy Resources PLC Potential acquisition of a 50% interest in Icacos (9447K)
April 16 2018 - 2:25AM
UK Regulatory
TIDMCERP
RNS Number : 9447K
Columbus Energy Resources PLC
16 April 2018
16 April 2018
COLUMBUS ENERGY RESOURCES PLC
("Columbus" or the "Company")
Potential acquisition of a 50% interest in the Icacos field -
Trinidad
Columbus, the oil and gas producer and explorer focused on
onshore Trinidad with the ambition to grow in South America,
provides the following update about the potential acquisition of a
50% interest in the Icacos field, in the South West Peninsula of
Trinidad ("SWP").
The Company currently holds a 50% non-operated interest in the
Icacos Field, via its subsidiary Leni Trinidad Limited ("LTL"). The
other joint venture partner is Touchstone Exploration Inc
("Touchstone"), via its subsidiary Primera Oil and Gas Limited
("Primera") who holds a 50% interest and is operator.
The Company and Touchstone have agreed, in principle, for LTL to
acquire Primera's 50% interest in the Icacos field. Upon completion
of the transaction, LTL will be the 100% owner of the Icacos field
and Operator.
Whilst the transaction is still subject to a definitive sale and
purchase agreement and certain regulatory approvals, the Company is
confident it can work with Touchstone to complete the relevant
paperwork and take over operatorship in Q2 2018.
The consideration for the transaction is USD$500,000 (the
"Minimum Payment") for Primera's current net 11 bopd. However, LTL
will not pay any upfront consideration for the purchase but will
pay the consideration over time until 1 January 2021 through
Primera receiving the net revenue it would have received had it
retained its interest. Primera will also receive, in the event of
increased production, 25% of any net revenue above the current
baseline. Should these cumulative payments not exceed the Minimum
Payment, LTL will pay the difference between the amount received
and the Minimum Payment. LTL shall be entitled to 100% of all
revenue from Icacos from 1 January 2021.
Leo Koot, Executive Chairman of Columbus, commented:
"Today's news is another step in our strategy to build a core
exploration, appraisal, development and potentially significant
production hub in the South West Peninsula of Trinidad. Following
on from the BOLT transaction, Columbus will shortly have obtained
100% operational control over a large area (approximately 8,700
acres) in the South West Peninsula. The SWP includes multiple
prospects of 20-400 million barrels in place, which we intend on
exploring, in addition to reactivating and maximising production
from the Bonasse oilfield and the Icacos oilfield. In line with our
ongoing focus on capital discipline, we are not expecting to pay
any upfront payments for the Icacos purchase. The consideration
will be deferred and mirror the actual production levels from the
Icacos field. All operational activities on Icacos will be funded
from existing cash resources.
We look forward to working with Touchstone, the Icacos
leaseholders and the Ministry of Energy and Energy Industries to
quickly sign and close this transaction so we can fully explore and
develop the SWP."
About Icacos
The Icacos field is located in the extreme southwest of Trinidad
and is operated by Primera. The field was producing at around 34
bopd in 2011 and has steadily declined to around 22 bopd in 2017,
mainly through natural decline. Production throughout 2017 was
consistently around this volume and there have been limited new
work programme activities during this period to increase
production. The Icacos field currently consists of six wells, with
three on production. Columbus plans to undertake analysis of the
potential for a well reactivation programme and undertake well
stimulation and other well activities to increase production. The
Company will also look at additional infill wells in due
course.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
Qualified Person's statement:
The information contained in this document has been reviewed and
approved by Stewart Ahmed, Managing Director (Trinidad) for
Columbus Energy Resources plc. Mr Ahmed has a BSc in Mining and
Petroleum Engineering and is a member of the Society of Petroleum
Engineers. Mr Ahmed has over 32 years of relevant experience in the
oil industry.
Contact Information
Columbus Energy Resources plc
Leo Koot / Gordon Stein +44 (0)20 3794 9230
VSA Capital Limited
Financial Adviser and Broker
Andrew Monk / Andrew Raca / Justin McKeegan +44 (0)20 3005 5000
Beaumont Cornish Limited
Nominated Adviser
Roland Cornish / Rosalind Hill Abrahams +44 (0)20 7628 3396
Camarco
Public and Investor Relations
Georgia Edmonds / James Crothers +44 (0)20 3757 4983
Notes to Editors:
Columbus Energy Resources Plc is an oil and gas producer and
explorer focused on onshore Trinidad with the ambition to grow in
South America. Initially focussed on maximising production from its
core Goudron field asset, Columbus is cashflow positive and aims to
create transformational growth by developing its exploration
targets across its portfolio in the South West Peninsula ("SWP"),
which lies in the extreme southwest of Trinidad and consists of
stacked shallow and deep prospects, 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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