General Corporate

?
Is all oil currently produced through the water injection pilot classed in the monthly oil production figures?
We are not yet attributing additional oil to water injection responses. The oil increments to date are from well stimulations and reactivations. Some of this planned wellwork was also targeted to provide the additional produced water and has resulted in welcome incremental oil.
?
How long would you anticipate before this is effective and in turn increasing the oil output?
Responses to individual injection point pilots that deliver oil output increases will be gradual with peak gains taking months depending on interwell communication.
?
In the recent RNS, it stated that BWPD has increased by 1000 and this is therefore available for water injection pilot work. What was the previous volume of water available for water injection and at what stage do you anticipate the additional full 1000 BWPD being used in the pilots?
Additional injection volumes will shorten the time to gain interwell connectivity information and allow multiple simultaneous pilots to be run. To date injection has been in the range 300-500 BWPD. Some of the increased produced water volumes are available to inject immediately. Other volumes require additional low cost tank storage to facilitate and the 1,000 BWPD will be utilised during the course of 2Q18.
?
In the RNS of 19th March 2018, the SWP is stated to potentially hold multiple prospects of 20-400 million barrels in place. Does mean up to 400 million in total or the prospects observed to date could hold anything from 20-400 million barrels?
Identified mapped prospects individually have a range of 20-400 million barrels. We have mapped multiple prospects to date in that range of potential oil in place volumes.
?
Was the Bonasse oilfield included in the Full Tensor Gravity ("FTG") gradiometry survey acquired by ARKeX Limited in 2015?
Yes. The Bonasse Oilfield was included in the FTG survey.
?
There is market speculation that a placing is imminent, can you confirm?
There is no requirement to raise funding in the short to medium term to fund our current activities and no placing is planned or imminent. As previously announced, the Company is fully funded for our planned 2018 work programme. The 2018 work programme includes all costs of running the Company’s activities in London, Spain and Trinidad, including the costs of our capital work programmes, all G&A and the servicing of our outstanding loans to Lind Partners.

Management continue to focus on delivering our targets, increasing shareholder value and are making good progress on all fronts. We will update the market, as required, in the near future.
?
How committed is Leo Koot to CERP given his other Directorships?
Leo Koot is Executive Chairman of Columbus Energy Resources and is supported by a strong and experienced senior management and operational team. Leo is 100% aligned with shareholders to create value and deliver shareholder growth. This was most recently demonstrated by his participation, alongside other members of the senior management team, in the Company’s placing.

In addition, Leo is Non Executive Chairman of Tulip Oil, a private company, which requires minimal time commitment and does not represent a conflict of interests. This appointment was approved by the CERP Board prior to his appointment to that role in January 2018.

Leo was also a Non Executive Director of Sterling Energy plc when he joined CERP as Executive Chairman and remains in that role which, again, involves minimal time commitment per month.

It is not unusual for a Director to hold more than one Directorship and the Board of CERP is satisfied that Leo’s additional roles are not affecting his focus in growing real value for all shareholders at CERP.
?
In your 11 September 2017 RNS you state that “The Company has granted Lind 17,992,308 shares, to be escrowed by Lind for at least six months from the date of issue (expected to be 23 September 2017).” Please confirm that at the end of the escrow period the 17,992,308 shares will be Lind’s to do with as they see fit.
As confirmed in the RNS of 11 September 2017, the Company at that time had successfully re-negotiated certain terms of the Lind convertible security funding agreement which involved, amongst other changes, the granting of 17,992,308 shares to Lind to be held in escrow for at least six months. As part of this re-structuring Lind agreed to increase the conversion price for the first tranche of the loan that was outstanding from 3p per share to 4.5p per share. The Company also confirmed on 19 September 2017 that application for the above-mentioned shares, together with a further 2,307,692 shares relating to the repayment of loan due for the month of September, had been made to the London Stock Exchange and that it was expected that admission to trading and dealings in these shares would commence on 22 September 2017 (subject to the six-month escrow requirements of course).

Management were very pleased with this re-negotiation which was extremely well received by the market and contributed within a month to an increase in Columbus’ share price and market cap by over 120% when compared to the share price on the day before the restructure was announced. The 17,992,308 shares currently represent approximately 2.9% of the total shares in issue at today’s date (12 January 2018).

Apart from the requirement for Lind to escrow the 17,992,308 shares for at least six months, there were no other restrictions placed on Lind who are entitled to take whatever action they wish on those shares at the end of the six-month escrow period. That said, Lind maintain a very positive relationship with Columbus management and in a meeting in early December 2017 indicated that they were very pleased with the progress achieved by the Company in recent months and were very positive about the long-term potential. They also indicated that they would not take any action which would have a detrimental effect on the Company’s share price and were looking for further share price growth before they may consider taking any action on their shareholding.

In addition, as mentioned in the RNS on 21 December 2017, the total debt outstanding to Lind at the end of 2017 had been reduced to approximately US$1.35 million. The Company has budgeted to meet all repayments due to Lind in 2018 in cash, although Lind retains the exclusive right to convert outstanding debt at 4.5 pence per share at any time of their choosing whilst the debt remains outstanding. Whilst Lind exercised their exclusive right in October 2017 to provide the Company with a second loan facility of US$750,000 that month (an amount which is included in the debt outstanding amount of US$1.35 million), Lind no longer have an exclusive right to provide any further funds to Columbus.
To summarise, the Company is very happy with its relationship with Lind, who have been extremely supportive of the new strategy being undertaken by management, and is satisfied that Lind will act in a manner which ensures the Company’s share price is not detrimentally affected by any actions they may take in future.
?
In the past, the Company provided operational updates to the market via RNSs on a very regular basis, sometimes weekly, but more recently the new leadership has limited the number of market announcements and has only been providing production updates quarterly. The lack of updates has the potential to lead to more volatility in the Company’s share price and potentially allows traders to speculate on a short-term basis. Why won’t the Company provide more regular market announcements of production and other performance as a means of improving information flow and better managing investors and other parties’ expectations?
Columbus Energy has a very clear strategy to build a significant E&P company over the next 5 years and this has been very clearly outlined by the new management. This strategy is different from the previous management and so may well mean the share register will change over time which we are aware of. The Company is encouraging shareholders to grow with them and to be long-term shareholders which is in everyone's interest. The management have laid out very clear targets which they expect to meet and hope to beat but that cannot be guaranteed. The management will run the Company in the best interests to achieve the best long-term share price capital appreciation and they are aligned with our shareholders to do this.

We are fully aware of our market obligations and are keen to keep our shareholders updated. To avoid confusion, any meaningful operational, business or price sensitive news will be announced without delay. In addition to this and as per our website, Columbus has made a commitment to publish its production updates at least quarterly to keep shareholders informed, in line with best practice in the industry and like many other E&P companies.

Whilst certain AIM companies chose to provide more regular updates for their own purposes, we do not believe that providing short-term updates on day to day production would help the market fully understand the overall performance being achieved by the Company in our operations. Production performance is just one aspect of how the Company wishes to grow its value. We also do not want to encourage short-term trading through such market announcements. In any company, there will be short-term issues affecting any operation (good and bad) which if looked at in isolation may mis-lead the reader about real performance being achieved. The Company believes that reporting on such matters could introduce even greater volatility to the Company’s share price to the detriment of all shareholders. Reporting on all aspects of production, operational and business performance, taking account of the good and the bad (and the ugly!), will, the Company believes, provide the market with more meaningful information when undertaken in a co-ordinated and measured fashion.

As mentioned above, it is industry best practice to provide production updates on a quarterly or half-yearly basis, with other operational or price sensitive announcements being made without delay. The Company will adopt best practice in such matters and will not seek to obtain short-term gain through communications for the sake of it.
?
I have LGO Energy plc share certificate – is it still valid?
Yes, all existing certificates under the name LGO Energy remain valid.
Operations

?
Please can you fully explain the potential for natural gas finds on your existing onshore acreage (and any current gas production on your acreage).
Columbus has a strong preference for focussing on oil. The geology south of the southern anticline which skirts the south of the South West Peninsula license areas has proved more gas prone. The Company is focussing on Prospectivity deeper to existing proven oil accumulations.
?
Are you likely to buy further gas acreage onshore Trinidad?
The Company is not targeting gas acreage in onshore Trinidad.
?
Does Icacos extend to shallow offshore?
The Icacos Private Petroleum License area is based on private mineral rights leases that apply to the land acreage only.