Gulf Oil and Gas accountACCOUNT

Columbus Energy Acquires A 50% Interest in Icacos field

Source: www.gulfoilandgas.com 4/16/2018, Location: South America

Share |
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."

Acquisitions and Divestitures News in Trinidad and Tobago >>

Greece >>  4/18/2018 - Greece launched an international tender to sell a majority stake in its biggest oil refiner, Hellenic Petroleum, as agreed under its third internation...
Australia >>  4/17/2018 - Cue Energy Resources Ltd is pleased to advise that through its 100% owned subsidiary, Cue Exploration Pty Ltd, the 42.5% equity option over exploratio...

Australia >>  4/16/2018 - Senex Energy has announced that it and Beach Energy have reached agreement to transfer up to $43 million free-carry commitment on the joint venture’s ...
Trinidad and Tobago >>  4/16/2018 - Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, provides the following update ...

United States >>  4/12/2018 - Noble Energy, Inc. (NBL) (Noble Energy) closed the previously announced divestment of its U.S. Gulf of Mexico assets to Fieldwood Energy LLC (“Fieldwo...
United States >>  4/11/2018 - Statoil and Total have completed their acquisition of Cobalt International Energy’s 60% operated interest in the North Platte discovery in the US Gulf...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Trinidad and Tobago Oil & Gas 1 >>  2 | 3 |

More News

 

Oil & Gas Companies in Trinidad and Tobago >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.