Columbus Energy Oil Production Dips Due To Extreme Trinidad Weather

LONDON (Alliance News) - Columbus Energy Resources PLC on Wednesday said average oil production ...

Alliance News 9 January, 2019 | 10:27AM
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LONDON (Alliance News) - Columbus Energy Resources PLC on Wednesday said average oil production fell in the fourth quarter of 2018 due to extreme weather conditions in Trinidad.

Shares in the oil and gas production and exploration firm were down 5.6% at 2.88 pence on Wednesday morning.

Columbus Energy's average production in the fourth quarter of 2018 fell to 670 barrels of oil per day, dropping from 735 barrels in the third quarter.

This was a result of "record rainfall and extensive flooding" in Trinidad, which made it difficult to access wells and made roads impassable.

Columbus Energy did, however, achieve its 1,000 oil barrels per day peak production target, with production hitting 1,021 barrels per day in late December, beating the peak of 879 barrels in the third quarter.

Columbus Energy acquired Steeldrum Oil Co Inc in October, and Steeldrum's performance has been included in Columbus Energy's figures with effect from July, as this was the effective date of the acquisition.

As a result of this acquisition, Columbus Energy now operates six fields in Trinidad.

The average realised sales price from Columbus Energy's fourth-quarter output was USD57.58 per barrel, down from USD60.90 per barrel in the third quarter. Prices peaked at USD69.04 per barrel in October and sunk to around USD50 per barrel in December.

Gross revenue in the fourth quarter was GBP3.2 million, falling from USD3.9 million in the third quarter due to a combination of reduced production and lower oil prices.

As at December 31, Columbus Energy's cash balance stood at USD2.6 million, up from USD2.0 million at the end of September.

"The past three months has been very challenging as we sought to complete the integration of the Steeldrum and Columbus teams in Trinidad into one effective unit, whilst also striving to grow production across our expanded portfolio," said Columbus Energy Executive Chair Leo Koot.

"All of our activities in Q4 2018 were undertaken at a time when Trinidad was witnessing the worst weather conditions in many years," Koot added.

Koot said that Columbus Energy has been actively pursuing mergers and acquisitions in Trinidad, as well as throughout South America, and is currently in discussions with "a number of third parties".

By Anna Farley; annafarley@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Columbus Energy Resources PLC 2.88 GBX -0.86 -
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