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Columbus Energy Announces the Extension of Inniss Trinity Contract

Source: www.gulfoilandgas.com 11/12/2019, Location: South America

Columbus is pleased to announce the extension of the Inniss Trinity Incremental Production Service Contract (Inniss Trinity IPSC) to allow for the implementation of the CO2 Pilot Project and to replace the existing minimum work obligations with the CO2 Pilot Project.

Highlights

- Extension of the Inniss Trinity IPSC from January 2020 to December 2021
- Revision of Minimum Work Obligation to replace the drilling of 7 development wells with the CO? Pilot Project

Leo Koot, Executive Chairman of Columbus, commented:

"The Company is pleased to have secured an extension to the Inniss Trinity IPSC to allow for the implementing of the CO2 Pilot Project. We believe the CO2 Pilot Project will give all parties a valuable insight into an alternative enhanced oil recovery mechanism for Trinidad and has the potential to transform oil & gas operations in the Inniss-Trinity field and in similar fields in Trinidad. In recognition of this, implementation of the CO2 Pilot Project will replace the existing Minimum Work Obligation of drilling 7 development wells. We look forward to working with the Ministry, Heritage and Predator to implement the CO2 Pilot Project."

Background - Inniss Trinity IPSC

Fram Exploration (Trinidad) Ltd (FRAM), the operator of the Inniss-Trinity field and a wholly-owned subsidiary of Columbus, is party to the Inniss-Trinity IPSC with Heritage Petroleum Company Limited (Heritage).

The term of the Inniss Trinity IPSC was due to expire in January 2020. It will now be extended until 31 December 2021 provided the Company implements the first phase of the CO2 Pilot Project by 28 January 2020.

The existing MWO (MWO) of the Inniss Trinity is the drilling of 7 development wells. The MWO has been amended to be the implementation of the CO2 Pilot Project.

The Company's interest in the Inniss-Trinity field benefits from an agreement with Predator Oil and Gas plc (Predator), whereby Predator will help plan and fund a CO2 EOR Pilot Project (the CO2 pilot project). As part of agreement with Predator, Predator has the right until to purchase FRAM for US$4.2m. In conjunction with the extension of the Inniss Trinity IPSC and recognising the timeline of the CO2 Pilot Project, the date by which Predator can elect to purchase FRAM has been extended to 30 September 2020 (or 30 June 2020 should the CO? pilot project not progress beyond its first phase).

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.

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