Columbus Energy angered by Spanish authorities over operations shut down

The company’s subsidiary, Compañía Petrolifera de Sedano S.L.U. (CPS), will lose a considerable amount of its Spanish workforce as Columbus said the normally "short and straight-forward process" of closing the concession and enabling a tender for a new concession to take place has been hampered by Spanish authorities.

Management said the experience had been "protracted and frustrating", accusing the authorities of having an "apparent disregard" for the continued employment of staff in the Burgos area.

Leo Koot, executive chairman of Columbus, said: "The decision to commence the collective dismissal procedure was taken because the company has incurred significant costs in Spain due to the government's decision not to renew the La Lora concession, exacerbated by the lengthy period between that decision and the (yet to be completed) closure of the concession."

The company will retain some employees to help with the tendering of a new concession and maintain the Ayoluengo field until the new concession is awarded.

Columbus said the cost of layoffs will be fully met from currently available funds within the company.

"Despite the latest developments we are committed to re-applying for the new concession and obtaining value from our investment and today's news is not impacting our overall strategy and delivery of our Trinidadian assets which are the main cash generator and opportunity for growth of the business," said Koot.

Columbus Energy is a London-based oil and gas producer and explorer with a focus on Trinidadian projects and a view to expand into South America.

As of 0808 GMT, Columbus’ shares were down 2.86% at 5.10p.