Columbus Energy Resources PLC Operational update - Bonasse PPL Grant (7436Y)
May 13 2019 - 2:00AM
UK Regulatory
TIDMCERP
RNS Number : 7436Y
Columbus Energy Resources PLC
13 May 2019
13 May 2019
COLUMBUS ENERGY RESOURCES PLC
("Columbus" or the "Company")
Operational Update - Grant of Private Petroleum Licence
Columbus, the oil and gas producer and explorer focused on
onshore Trinidad with the ambition to grow in South America, is
pleased to announce that it has been granted a Private Petroleum
Licence for the Bonasse Licence Area in the South West Peninsula of
Trinidad, which includes the Bonasse field.
Leo Koot, Executive Chairman of Columbus, commented:
"The grant of the Private Petroleum Licence ("PPL") for the
Bonasse Licence Area in the South West Peninsula ("SWP") of
Trinidad, which includes the Bonasse field, is formal recognition
by the Ministry of Energy and Energy Industries that Columbus has
the right to exploit any oil and gas in the Bonasse Licence Area.
Whilst, in some ways, this is merely an extension of the current de
facto situation, I believe it is an important step in that it
formally recognises our rights and grants us the regulatory
certainty to continue with our operations and planned drilling
campaign. Without it, we would not have been able to drill the
upcoming well. The PPL and the underlying lease with Singh Estates
provide a world class economic and regulatory framework to exploit
any oil and gas in the Bonasse Licence Area. I am confident that
even a modest discovery in the SWP has the potential to transform
the Company. I would like to thank the Ministry of Energy and
Energy Industries for their assistance in granting the PPL."
Background
As announced on 19 March 2018, the Company signed an Agreement
for Lease with Singh's (Cedros) Estates Limited (the "Future
Lease") that ensured the Company had access to approximately 1231
hectares in the South West Peninsula (the "Bonasse Licence Area")
within which to conduct oil and gas operations.
The Future Lease was subsequently converted into a Deed of Oil
Mining Lease ("Deed of Oil Mining Lease"). The Deed of Oil Mining
Lease grants the Company exclusive rights to conduct oil and gas
operations over the Bonasse Licence Area until 2046. The Deed of
Oil Mining Lease was the foundation for the grant of the PPL by the
Ministry of Energy and Energy Industries.
As announced on 17 April 2019, the Company is progressing the
detailed technical work on the SWP, the Company has chosen a well
location and is undertaking the necessary pre-drill activities to
commence drilling in Q3 2019, subject to receiving relevant
Governmental approvals. The grant of the PPL will assist in that
approval process.
The PPL has a term of 20 years and may be renewed for successive
periods of twenty years upon an application by the Company. The PPL
has a Minimum Work Obligation that largely matches the obligations
under the Deed of Oil Mining Lease, namely the workover of 3
existing wells, with the addition of the drilling of one (1) well
in 2019. The Company expects that the Minimum Work Obligations will
be met as part of the ordinary course of business, with the
obligation related to the drilling of a well satisfied by the
planned well in Q3 2019.
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, Chief Technical Officer (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 33 years of relevant experience in the
oil industry.
Contact Information
Columbus Energy Resources plc
Leo Koot / Gordon Stein +44 (0)20 7203 2039
VSA Capital Limited
Financial Adviser and Broker
Andrew Monk / Andrew Raca +44 (0)20 3005 5000
Beaumont Cornish Limited
Nominated Adviser
Roland Cornish / Rosalind Hill Abrahams +44 (0)20 7628 3396
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. The Columbus Energy group has five producing fields,
an 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. Columbus is cashflow positive and 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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