Building an oil production led South American exploration business - - PowerPoint PPT Presentation

www.columbus-erp.com

Building an oil production led South American exploration business

Leo Koot, Executive Chairman, June 2017

Forward Looking Statements

2 Certain statements in this presentation are “forward looking statements” which are not based on historical facts but rather on the management’s expectations regarding the Company's future growth. These expectations include the results of operations, performance, future capital, other expenditures (amount, nature and sources of funding thereof), competitive advantages, planned exploration and development drilling activity including the results of such drilling activity, business prospects and opportunities. Such statements reflect management's current beliefs and assumptions and are based on information currently available. Forward looking statements involve significant known risks, unknown risks and uncertainties. A number of factors could cause the actual results to differ materially from the results denoted in these statements, including risks associated with vulnerability to general economic market and business conditions, competition, environmental and other regulatory changes, the results of exploration, development drilling and related activities, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although these statements are based upon what management believes to be reasonable assumptions, the Company cannot assure investors that the actual results will be consistent with these forward looking statements.

Strengthened Management Team

• Mr. Stewart Ahmed,

Managing Director Trinidad

Stewart Ahmed has 32 years oil industry technical, commercial and management experience, most recently as Chief Operating Officer and General Manager of AIM Listed Madagascar Oil in Antananarivo from 2013-2016. Operating the Tsimiroro Field steam flood pilot, he gained the first Field Development License in Madagascar’s history. As General Manager of Dove Energy in Sana’a, Yemen, Mr Ahmed discovered, developed and operated a number of

• nshore oil-fields peaking at 25,000 BOPD. Subsequently he

managed the exploration license seismic and drilling work programmes as General Manager of Dove Energy in Damascus, Syria and Midas Oil and Gas in Yemen. He performed the position of Petroleum Engineering Manager for RDS Resource, a leading Aberdeen based Subsurface Consultancy from 1997-2000. Prior to that Mr Ahmed worked for 12 years for Chevron in the UK North Sea and Gulf of Mexico as a Petroleum Engineer and Commercial Analyst. Mr Ahmed has a BSc in Mining and Petroleum Engineering and is a Member of the Society of Petroleum Engineers.

• Mr. Gordon Stein,

Chief Financial Officer

Gordon Stein is a member of the Chartered Institute of Public Finance & Accountancy and was the CFO of AIM-traded Madagascar Oil Limited from June 2013 to October 2016. Mr Stein was previously CFO at Cadogan Petroleum plc which is an independent oil and gas exploration, development and production company with onshore gas and condensate assets in Ukraine. Preceding this, he has been CFO at Vanguard Energy Limited and Regal Petroleum plc. He has also held senior financial and operational management positions in Fairfield Energy Limited, Acorn Oil and Gas Limited, LASMO PLC, Monument Oil & Gas plc, Centrica plc and BG pc. Mr Stein has over 23 years’ experience in the upstream oil and gas sector in the UK and internationally, including Ukraine, Tunisia, Venezuela, Algeria and Turkmenistan.

• Mr. Leo Koot,

Executive Chairman

Leo Koot is a Dutch national, currently residing in the UK, with

• ver 28 years of industry experience. During his extensive

career, he has run oil and energy businesses as well as been an active board member, most recently with AIM listed Sterling Energy PLC as Senior Independent Non-Executive

• Director. Mr Koot's global energy experience includes his role

as Managing Partner of MENA Gulf Investment Partners (Abu Dhabi), President of Abu Dhabi National Energy Company (TAQA) and Managing Director of TAQA UK where he built the

• rganisation from a few people to an organisation of over

2,000 staff and contractors and delivered a mature E&P

• perating company that managed 60,000 barrels/day

production with US$1.7 billion in annual revenues. Prior to TAQA, Koot was CEO of Energy Development Partners an oil and gas business creating ways to match capital and resources with developing production, for which he helped raise a US$350 million private equity fund. Mr Koot has a Master in Petroleum Engineering.

Robust Foundations for Future Growth

The Goudron Field High quality, low risk , onshore Trinidadian oil producing asset with significant growth potential

• 2P reserves 11.8 mmbbls
• 2C reserves 22.2 mmbbls
• Approx.350 bopd of production of light sweet

average 38-degree API oil

• IPSC agreement with Petrotrin state oil company

Mature E&P region Venezuelan basin & Trinidad operations

• Established oil economy with infrastructure,

skills and services to execute the growth plan

• Columbus Energy Resources has maintained a

strong license to operate in Trinidad

• Access to South America

SW Peninsula & Goudron deep Exploration opportunities

• 1.3 billion barrels of gross unrisked prospective
• il-in-place is estimated to lie in South West

Peninsula

• Near term production growth
• Multiple value generating opportunities

Enhanced Recovery Pressure support recently drilled development wells

500 1,000 1,500 2,000 2,500

• Strengthen leadership team
• Build a value based organisation
• Implement business processes
• Implement robust decision

making

Launch

• Reduce G&A
• Increase production
• Production optimization
• Water injection program A
• Bonasse field reactivation

Positive cash flow

• SW peninsula licensing
• Mature exploration prospects
• Drill exploration targets
• Entry to South America

Value Growth Exploration

• Water injection program B to D
• Pressure support for high rate wells
• Shallow Mayaro sand
• Drill injector/producer pairs
• Re-drill “The lost well”
• Competent persons report
• Material production uplift
• Material discovery in the

South West Peninsula

• Expand foot print in South

America

Transformation Value growth Production

• Access to smart capital
• Cornerstone investor
• Merger
• Farm-out’s

Strategy Road Map

Accelerate 3 to 5 year timeline Refreshed business strategy with a focus on capital discipline to create shareholder value

Safe & Sustainable Stronger Together Creative Excellence Positive Energy Totally Trusted Personally Responsible

6

OUR VALUES

Thank you

7

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Source: Deloitte, June 2016

Gross (mmbbls)

1P 2P 3P 1P 2P 3P Reserves 0.7 7.2 30.4 1.6 11.8 25.6

Robust reserves base

Gross (mmbbls)

1C 2C 3C 1C 2C 3C Contingent Resources 6.2 15.9 63.2 3.2 22.2 63.4

Gross (mmbbls)

Low Medium High Low Medium High Original Oil in Place 65 125 350 210 555 975

Source: Challenge Energy, July 20162

2012 2016

LIND Facility

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• Net debt to Lind Partners ~US$1.6 million, being paid in cash monthly from

free cash flow at Goudron

• No trade creditors outside normal business
• Spanish authorities decision taken and Ayoluengo field suspended pending

the granting of a new 30-year concession

• Final sale and purchase agreement signed to acquire all the deep and

shallow rights from Beach Oilfield Ltd in the high value South West Peninsula play

• Company’s reputation and licence-to-operate has been fully preserved in

both Spain and Trinidad

10

Goudron

500 1,000 1,500 2,000 2,500

Oil Production (bbls)

Goudron Production History

11

Legacy well reactivation and infrastructure 2014 8 wells 2015 7 wells Recompletions and maintenance

Critical to increasing production and recovery

• Analogue studies and 2014/15 well data indicate water flooding is appropriate
• Local analogues at Trinity-Inniss, Navette and Beach-Marcelle Fields
• Considerable local experience in Trinidad
• Over 60 mmbbls of independently certified 3C resources (Source: Deloitte 2016)
• Scope of work for a low cost

pilot project to be agreed 1Q17

• Existing produced water
• Two C-sand injectors
• Four to six C-sand producers
• Consideration to be given to

alternating water with gas or CO2

• Application for a Environmental

Certificate in 1Q and project start

• up as soon as practical

Water Flood

12

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South West Peninsula

South West Peninsula Lease Position

14 Beach Oilfield Cedros Leases Icacos Leases

3D Seismic

Bonasse Field Icacos Field Columbus Energy Resources Cedros Leases Galpha Point FRM-1 Deep Well

Why the South West Peninsula?

15

Installing new well tanks

Block of oil impregnated Herrera Sandstone from the mud volcano

• n the beach at Galpha Point
• Largely unexplored in the

Miocene at depths > 2000 ft

• Accessible terrain
• Re-migrated light oil at

shallow depth

• Only one deep well (FRM-1)

which discovered oil

• Parallel trend to the offshore

Soldado field complex

• Oil known in proven

reservoirs seen in contemporaneous mud volcanoes

• Estimated to be 1 to 4 billion

barrels oil in place

Combining data; creating understanding

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Private leasing FTG data Seismic data Soil geochemistry Wells