Kerman & Co advises Columbus Energy Resources plc on acquisition of Steeldrum Oil Company Inc. and US$3.25 million convertible secured facility
July 17, 2018
“We are grateful to Kerman’s, in particular Simon Holden for supporting us to complete these transactions quickly and efficiently.”
Kerman & Co has advised long-standing AIM-quoted client Columbus Energy Resources plc (AIM: CERP), the oil and gas E&P company focused on onshore Trinidad with the ambition to grow in South America, in connection with its recent acquisition and entry into a new short-term convertible security facility.
Columbus entered into a share purchase agreement to acquire Steeldrum Oil Company Inc., the parent company of West Indian Energy Group Ltd and owner of the Innis-Trinity field, the South Erin field and the Cory Moruga development project, all located in southern Trinidad and close to Columbus’s existing assets. The acquisition is subject to certain regulatory, joint venture partner and third-party approvals. On completion, the acquisition will add current oil production of approximately 200-250 bopd and reserves of 5.6 mmbbl. The Cory Moruga development project will add recoverable reserves of approximately 1.1 mmbbl to the Columbus portfolio. Steeldrum’s assets are all located in southern Trinidad and close to Columbus’s existing assets, allowing Columbus to utilise Steeldrum’s existing technical expertise and relationships.
In conjunction with the acquisition, Columbus also entered into a new short-term convertible security facility with Lind Asset Management VII, LLC. The new facility was established to provide Columbus with the right, but not the obligation, to draw down additional funds of up to US$3.25 million, should they be required over the next six months. Any funds drawn down under the facility would support the integration of Steeldrum and accelerate certain operational activities of the enlarged group.
Simon Holden, Partner at Kerman & Co, advised Columbus in connection with both transactions.
Tony Hawkins, Legal & Commercial Director of Columbus, commented: “We are grateful to Kerman’s, in particular Simon Holden, for supporting us to complete these transactions quickly and efficiently. With a tight timetable, Simon was an essential part of the team and we relied on his calm manner to help finalise the deals.”
Simon Holden, commented: “These transactions presented our firm with another opportunity to work with the first class management team at Columbus. Working with teams that know what they are doing really does streamline the transactional process. We wish the team well in their future endeavours as they further deliver on the growth strategy they outlined for Columbus last year, consolidating the group’s extensive, well-balanced portfolio of assets across the south and south-west of Trinidad.”