Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, provides an update on business, operational and financial activities during Q3 2018.

Following the announcement by the Company of the completion of the acquisition of Steeldrum Oil Company Inc on 8 October 2018, the Company has incorporated Steeldrum's business performance into Columbus' financial accounts with effect from 13 July 2018, the effective date of the Acquisition.

Key Highlights in Q3 2018:

• Average production of 735 barrels of oil per day ("bopd") achieved during Q3 2018 by the Columbus Group with 751 bopd produced on average in September 2018 (Q2 2018: average of 553 bopd).
• Peak production of 879 bopd, achieved in September 2018 (Q2 2018: 648 bopd).
• Gross Revenues of US$3.85 million achieved (Q2 2018: US$3.01 million).
• 62,658 barrels sold during Q3 2018 (Q2 2018: 50,314 barrels).
• Average realised sales price from operations in Q3 2018: US$60.90 per barrel (US$60.00 per barrel in Q2) - peaking at US$62.14 per barrel in September 2018.
• Strong progress made delivering Columbus' strategy roadmap of being cash flow positive from operations and providing a foundation for creating value though production and M&A growth.
• Completion of the acquisition of Steeldrum achieved in early Q4 2018, adding significant optionality to increasing production going forward. Excellent collaboration between Columbus and Steeldrum management/staff in Q3 2018 with the integration of the two organisations well-advanced and the collaboration already delivering positive production growth in the Steeldrum fields.   
• Cashflow positive position maintained from operations delivering US$0.54 million after taking account of intensive field maintenance and well workover campaign during Q3 2018 costing US$0.72 million.
• Continued focus on capital discipline, with cash balance of US$1.97 million at 30 September 2018 (30 June 2018: US$2.35 million).
• US$0.31 million also held as restricted cash at 30 September 2018, these payments made in Q3 2018 address legacy Performance Bond and abandonment fund requirements in Trinidad.
• Further reduction of G&A costs with significant downscaling of London office to now just support administrative and technical/engineering requirements.

Outlook

• Group remains on track for production from Trinidad to exceed 1,000 bopd by the end of 2018 and the consolidated group, post the Steeldrum transaction, is expected to remain operationally cash flow positive.
• Integration of Columbus and Steeldrum to be completed by end Q4 2018, with Steeldrum sub-surface team immediately joining the Columbus sub-surface team at the Company's expanded Trinidad office in San Fernando, optimising co-ordination across all seven fields/assets.
• Operational teams from both entities, collaborating on implementing various newly identified opportunities to increase production across the expanded Columbus portfolio, all to be funded from production revenues and available cashflow.
• Technical work continuing to identify the optimal drilling locations for the SWP exploration programme, planned for mid-2019 onwards.
• Continuing to work actively on new acquisition opportunities in Trinidad and South America using the following investment screening criteria: onshore; operatorship, easy export routes, mature oil provinces in the Caribbean or South America; close to infrastructure; funded in a manner which is accretive for Columbus' current shareholders.

Leo Koot, Executive Chairman of Columbus, commented:
"It has been an exciting few months for all at Columbus as we sought to complete the acquisition of Steeldrum after it was announced in early Q3 2018. We are delighted that this was achieved just after the quarter-end following a huge amount of hard work by management, staff and advisers from both entities.

"We are already seeing the real benefits of having increased optionality for production and joining the two entities together provides a stronger platform for growth and helps de-risk our portfolio in Trinidad, with Group production averaging 735 bopd in Q3 2018 and hitting a peak of 879 bopd during the quarter. The collaboration between our technical and operational staff since early July, which has included the introduction of operational techniques which we have successfully employed at Goudron, has already seen some early gains in the Steeldrum fields with, for example, production at the Innis Trinity field peaking at 217 bopd in September 2018, which is greater than has been achieved for some time.

"Gross revenues from oil sales from the expanded Columbus portfolio increased to over US$3.85 million during the quarter and further production growth over the coming months should provide additional revenues and cashflow to allow us to chase additional growth opportunities.

"We can see many opportunities for achieving quick production growth across the new Columbus portfolio, which now includes five producing fields, one development project and our highly prospective South West Peninsula ("SWP") exploration opportunity, and we will be implementing those projects in the coming weeks with the objective of exceeding 1,000 bopd in Trinidad by the end of 2018. This programme includes our ongoing water injection campaign at Goudron where we have already injected over 79,000 barrels of water into one well and are seeing clear signs of connectivity to adjacent wells.

"As announced in early September, we also plan to bring the Snowcap Field in the Cory Moruga Licence onto production through re-starting the Snowcap-1 well before the end of 2018, using existing infrastructure and available funds, following the received formal confirmation of the extension of the licence by the Trinidad authorities. We believe this will achieve a quick production "win" for Columbus towards the year-end production target highlighted above. 

"We continue to address a number of legacy issues which have been un-avoidable during the quarter, including ongoing issues in Spain and the need to undertake a "financial catch-up" on both abandonment fund provisions in Trinidad and also the placement of performance bonds on our Trinidad fields, both involving costs which should have been incurred a number of years ago. This will all help in establishing a more solid platform for growth in Trinidad going forward. The closure of our main London office in July was another example of where we will take action, as required, to reduce our running costs and create a better support basis for the future.

"Finally, I would like to thank all management, staff and stakeholders at Steeldrum for their support since we announced our acquisition in early July. We look forward to working with them as we move forward together to unlock the many real growth opportunities we are planning to chase in the coming months."