Columbus upbeat after strategic review

The AIM-traded firm said the key aim of the operational review was to develop a work programme in its Trinidad operations, in a capital efficient manner from existing cash resources, with the objective of being cash flow positive across the company in the fourth quarter.

“This has triggered a fundamental change in several operational activities,” the board said in its statement.

It said the Mayaro sand infill programme was now on hold, as well decline data indicated that without pressure support any new well would “decline rapidly” and not deliver on earlier expectations.

The fast-tracked implementation of a simultaneous multi-pilot and multi interval approach to Goudron Field water-injection would now begin in the third quarter, as opposed to the previously-announced single pilot water-flood strategy which targeted just one reservoir interval.

A new Goudron Field well stimulation programme was also announced, targeting currently-producing wells along existing mapped faults in the Goudron Mayaro reservoir.

The installation of smart pumping systems using downhole sensors would also go ahead, firstly on well GY-664, along with well interventions in the existing Bonasse field wells to re-activate continuous oil production aimed at increased production in the fourth quarter.

“Average production from Trinidad in the second quarter was 327 bopd, with production at the end of the quarter significantly affected by Tropical Storm Bret, the worst storm to hit Trinidad in over 10 years,” the board reported.

“Operations at the field have re-commenced and production has subsequently returned to pre-storm levels of between 380-420 bopd.”

Columbus said a number of new operational and commercial opportunities were being investigated, to increase production from existing and new fields which would allow the company to expand its footprint in Trinidad.

The company had also completed its Head office move, in line with its strategy to reduce its corporate costs.

“I joined the company two months ago and recently spent time in-country, reviewing our operations and am hugely excited by the quality and potential of our assets,” said Columbus chief executive Leo Koot.

“Alongside our new Trinidad Managing Director, Stewart Ahmed, and our new CFO, Gordon Stein, we have been busy identifying the best ways to increase production and cash flow across our asset base, from existing cash resources.”

Koot said the board was confident that the multiple work programmes set out - including the acceleration of the water injection programme and introduction of the well stimulation campaign - would help the company achieve its short-term goal of becoming cash flow positive in the fourth quarter.

“[It will] create a company with a sustained and strong production base from which to grow.”