Acquisition, New Convertible and Business Update

13 July 2018

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Value accretive acquisition growing and consolidating Columbus' acreage position in South Trinidad

SPA signed for the acquisition of Steeldrum Oil Company Inc.

 New Convertible Security Agreement entered into with Lind Partners

 Q2 2018 Business Update

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, is pleased to announce it has signed a Sale and Purchase Agreement ("SPA") to acquire Steeldrum Oil Company Inc ("Steeldrum") adding current oil production of approximately 200-250 bopd and reserves of 5.6 mmbbl and the Cory Moruga development Project adding 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 the Company to utilise existing technical expertise and relationships.

Highlights:

· The Steeldrum acquisition is further delivery of Columbus' growth strategy as outlined in its roadmap last year and consolidates the Company's extensive, well balanced portfolio of assets across the south and south-west of Trinidad.

· The assets acquired through this transaction are:

o 100% operated interest in Innis-Trinity field with production of between 120-150 barrels of oil per day ("bopd") and reserves of 4.0 million barrels of oil ("mmbbl")

o 100% operated interest in South Erin field with production of between 80-100 bopd and reserves of 1.6 mmbbl

o 83% operated interest in Cory Moruga development project expected to have recoverable reserves of approx. 1.1 mmbbl.

· (Note: Reserve figures quoted above supplied by Streeldrum)

· In addition, the acquisition SPA grants Columbus a first priority use of two rigs at market rates, with one of those rigs being suitable for the Company's planned exploration activities in the South West Peninsula ("SWP").

· The initial consideration for the acquisition of Steeldrum will be paid in Columbus stock through the issuance of 92,743,775 shares, equivalent to 12.5% of the current issued share capital and £4.4 million (approx. US$5.8 million) at the latest closing mid-market price, with certain contingent considerations.

· New Lind Facility established to provide Columbus with access to additional funds, should they be required over the next six months, to support the integration of Steeldrum and accelerate certain operational activities

o Lind Facility allows Lind to convert any outstanding loans into equity at a share price of 8.1 pence per share.

· The consolidated group, post the Steeldrum transaction, is expected to remain operationally cash flow positive.

· Near term value opportunities to exploit existing and new assets through exploration, the Cory Moruga development project and growing production and revenues at Innis Trinity and South Erin with the adoption of a similar operational strategy to our existing fields.

· Trinidad peak production in Q2 2018 of 648 bopd with a steady 530-575 bopd delivered month on month.

· Cash balance of US$2.4 million at the end of Q2 2018 after $1.11 million of capex investment, abandonment fund contributions, M&A and Spain legacy costs during Q2 2018.

· New technical work on the SWP has been commissioned involving specialist exploration consultants to develop a technical roadmap for de-risking 2019 drilling locations.

· Continuing to work actively on a number of additional acquisition opportunities using strict investment screening criteria.

The Company is also pleased to provide a business update on its activities in Q2 2018 and will be presenting more information on these activities, the Steeldrum acquisition and the rationale for establishing the Lind Facility at today's Annual General Meeting ("AGM"). 

Leo Koot, Executive Chairman of Columbus, commented:

"The acquisition of Steeldrum is further delivery of Columbus' growth strategy and, on completion, the Company will have a large, well balanced portfolio of assets strung across the south and south-west of Trinidad. The portfolio will include low-risk but highly prospective exploration opportunities in the South West Peninsula, a development project in Cory Moruga and 5 producing oilfields (Goudron, Innis Trinity, South Erin, Bonasse and Icacos). This provides the Company with an excellent opportunity to exploit our existing and new assets through operational excellence and also grow organically through exploration and the Cory Moruga development project. We will also be specifically looking at growing production and revenues in Innis Trinity and South Erin in the near future through the adoption of a similar operational strategy to our existing fields.

"In line with our ongoing focus on capital discipline, we will purchase Steeldrum with shares rather than cash. This also has the benefit of introducing new shareholders to the Company who are experienced investors in oil & gas and who will be aligned with the Company in seeing that the integration of the assets into our portfolio happens in the most efficient way. A final benefit of the transaction is access to a drilling rig suitable for our planned exploration activities in the SWP, a production rig and the integration of a well-respected oil and gas team into the larger Columbus group, a group who are experienced in drilling wells in Trinidad. I am delighted that we have agreed this deal with Steeldrum and we are on track to building a core exploration, appraisal, development and production hub in the south and south-west of Trinidad.

"The Company believes it will be able to assimilate Steeldrum into Columbus using our existing cash resources and the revenues we are generating from our ongoing operations. Nevertheless, the Board considered it prudent to ensure we have access to additional funds to cover any short-term issues that may come our way when integrating the two organisations and when we are seeking to optimise our new assets over the next few months. We are very grateful that Lind has provided a short-term loan facility of up to $3.25 million to support the Steeldrum transaction. This drawdown facility, where Lind can convert any outstanding loans into ordinary shares at 8.1 pence per share, provides us with financial flexibility to optimise the new organisation and deal with any un-expected financial issues and once again demonstrates their confidence in the future potential of our Company. As a result, and due to the financial terms we have agreed, we believe the Lind Facility is accretive for our shareholders as it minimises any equity dilution whilst providing real financial flexibility at minimal cost.

"On the operational front, we have seen steady production performance in Trinidad in Q2 2018 with production averaging 553 bopd, peaking at 648 bopd during the quarter. We have continued to face certain challenges in growing production at Goudron, notably sand production issues which we are actively seeking to address through new artificial lift applications. Our water injection pilot campaign can now be ramped-up through the availability of increased water volumes As well as Goudron production, we have now commenced the reactivation of the Bonasse field with a rig arriving on site within the past few days. We hope to see increasing production in Bonasse throughout 2H 2018 and with the recent signature of the SPA on the Icacos field, we plan to commence a reactivation programme on some shut-in wells in that field in the near future. These are exciting times for Columbus as we expand our production activities on our assets in Trinidad and the Steeldrum acquisition will allow us to expand our programmes even further. We would hope to see gross production across all of our fields grow continually throughout 2H 2018 and continue to grow well beyond that. This will give us much greater financial firepower to progress our exploration portfolio in the SWP in 2019 and beyond.

"We continue to consider a number of other M&A opportunities in Trinidad and elsewhere in South America; these include some small opportunities and others more material in size. We continue to have ambitious growth plans and are hugely excited by our increasing potential as our footprint expands. I believe we have come a long way in the past year on many fronts.

"I look forward to providing our shareholders with further information on the benefits of the Steeldrum acquisition, the Lind Facility and our recent business performance at our AGM which takes place later today."

The Steeldrum Acquisition:

Steeldrum is the parent company for the West Indian Energy Group Ltd and is the owner of the Innis-Trinity field (100% and operator), South Erin field (100% and operator) and the Cory Moruga development project (83.8% and operator), all located in southern Trinidad and close to Columbus's existing assets.

The Innis-Trinity field and South Erin field are currently producing between 120-150 bopd and 80-100 bopd respectively, with remaining 2P reserves of approximately 4 mmbbl and 1.6 mmbbl respectively. The Cory Moruga development is expected to have recoverable reserves of approximately 1.1 mmbbl.

The consideration for the purchase of Steeldrum is the issuance to the Sellers of 92,743,775 shares in Columbus (the "Base Consideration Shares").

Columbus may also pay deferred consideration to the Sellers, as follows:

1. 16,422,434 shares in Columbus following the re-issuance of the Cory Moruga E&P Licence and 16,422,434 Shares following either a positive final investment decision being made to develop the Cory Moruga field or a sale to a third party (the "Cory Moruga Shares"); and

2. 16,920,083 shares in Columbus in the event the Innis-Trinity field is sold to a third party for no less than US$4,200,000 (the "Innis Trinity Shares") - see option held by Predator Oil & Gas Limited, as referred to below.

In the event all of the Base Consideration Shares, Cory Moruga Shares and Innis Trinity Shares vest in the Sellers, the Sellers will hold 18% of the enlarged share capital of the Company. The Sellers are West Indian Energy Holding AS, Rex Caribbean Holding Ltd, Geoffrey Leid, Svein Kjellesvik and Gelco Energy Inc. The Sellers will be subject to certain lock-in arrangements that will prohibit them divesting of their shares for a period of at least 6 months post completion, save for 10% of the Base Consideration Shares.

The Lind Facility:

It was recently stated in the Company's Annual Report, and in various other statements in 2018, that Columbus is fully funded for its 2018 work programmes, is cashflow positive from its operations and management forecast increasing revenues from its operations in Trinidad. This continues to be the case. Whilst the Board of Columbus believes it has the financial capacity to meet the ongoing obligations of the new integrated organisation from existing and forecast cashflows, it still considered it to be prudent to ensure additional funds are available to cover any short-term production growth projects and cash flow issues which may arise. The establishment of such a facility would, in effect, provide an appropriate "financial insurance policy" for the Company for the next six months whilst the new integrated organisation beds-in.

On 12 July 2018, the Company therefore entered into a new short-term Convertible Security facility (the "Lind Facility") with Lind Asset Management VII, LLC ("Lind") which provides the Company with the right, but not the obligation, to drawdown up to US$3.25 million. The Lind Facility has been established to provide Columbus with access to additional funds, should they be required over the next six months, to support the Steeldrum transaction, including costs associated with integrating the two companies or accelerating certain operational activities. The consolidated group, post the Steeldrum transaction, is expected to be operationally cash flow positive. The Lind Facility allows Lind to convert any outstanding loans into equity at a share price of 8.1 pence per share.

In summary, the Lind Facility provides the Company with the following:

· The right to drawdown funds as follows:

o up to US$2.25 million of convertible loans for a period of up to 180 days after execution of the Lind Facility (in two tranches of US$1.0 million and US$1.25 million);

o a further US$1.0 million of convertible loans, in tranches of US$0.5 million each, subject to mutual agreement with Lind and the Company having a minimum market cap of £25 million;

· Should the Company not exercise its drawdown rights within the 180-day period, the agreement will lapse and no funds will be available;

· After any first drawdown, there is a 120-day repayment free window before repayment of the loans over a 20-month period from free cashflow from the Company's current and new operations, or monthly repayments may alternatively be made in equity at the Company's election at the prevailing price at the time of payment;

· In addition, Lind has received 5,472,136 share options, which they can exercise at a share price of 8.1 pence, and will receive additional options alongside any drawdowns on the same exercise terms. Lind also has the right to convert any loans outstanding into ordinary shares at a share price of 8.1 pence per share during the two-year period of the Lind Facility;

· The Company has paid an up-front commitment fee of US$35,000 for the first US$1 million available for drawdown. Apart from legal fees incurred to establish the Lind Facility, no other payments have been made to Lind at this stage and no other payments are due if the Lind Facility was to lapse;

· Following any drawdowns, the amounts drawn-down are secured against the assets of Columbus in a manner similar to the previous security agreements with Lind until fully repaid and carry a 0% interest rate, although there is a 8.5% face value uplift per annum on any loans drawndown.

Key Highlights in Q2 2018:

· Continued cash flow positive position from operations as per the Company Roadmap and conditions enhanced for cash flow growth from production.

· SWP acreage position consolidation progressed in the form of the submission of the Bonasse Private Petroleum License in the name of Columbus Energy Bonasse Ltd and the signing of the Sale and Purchase Agreement to take on 100% of the Icacos Field and Leases.

· Solid oil production performance delivering steady cashflow and base for future growth:

o Trinidad peak production in Q2 2018 of 648 bopd with a steady 530-575 bopd delivered month on month.

o Average Trinidad production per month as follows: April 574 bopd; May 532 bopd, June 553 bopd.

o Bonasse field reactivation of production in the form of twice monthly sales in May and June.

· Cashflow positive position maintained from operations with gross revenues of US$3.01 million during quarter delivering US$0.94 million operating netback after payment of operating costs, workovers and well interventions, royalties and SPT (compared to US$2.64 million and US$0.70 million respectively in Q1 2018).

· Cash balance of US$2.4 million at the end of Q2 2018 after $1.11 million of capex investment, abandonment fund contributions, M&A and Spain legacy costs during quarter.

· Outstanding loan balances reduced to US$0.59m.

Outlook

· All planned 2018 activities fully funded from production revenues and available cash, although impact of Steeldrum acquisition may introduce additional financial pressures in the short term. The new Lind Facility will provide an ability to drawdown funds to deal with any such pressures if they arise.

· Bonasse field reactivation of production has recently commenced in earnest with the mobilisation of a workover rig to site to perform further re-activations and production enhancements on the 10 available wells. Rig activities commencing week beginning 16 July 2018.

· Following acquisition of 100% of Icacos Field, assumption of operations duties is in progress from the Operator, to allow well optimisation activities and planning for legacy well missed-pay, oil production testing activities to commence in Q3.

· Goudron Field Water Injection is set to increase to over 1,000 barrels of water per day ("BWPD") in 2H 2018 from produced water resources, allowing enhanced speed of pressure responses at target wells to achieve faster oil production response evaluation during the pilot phase.

· Goudron Field well responses to optimisation programmes continues to justify expectations of the growth potential of the field. Managing sand production in successful well stimulations has led to a shift in completion technology away from conventional rod pumps with a multi-strand approach including Progressive Cavity Pump installation and new sand screen technology applications being deployed.

· New technical work on the SWP has been commissioned involving specialist exploration consultants to develop a technical roadmap for de-risking 2019 drilling locations.

· Continuing to work actively on a number of additional acquisition opportunities using the following strict investment screening criteria which is not exclusive: 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.

DETAILED INFORMATION

Steeldrum Acqusition - Sale and Purchase Agreement

The SPA will be entered into by the Company and Columbus Energy (St Lucia) Limited (a wholly owned subsidiary of the Company). Columbus Energy (St Lucia) Limited will the purchaser under the SPA, the Company issuing the Base Consideration Shares and, if applicable, the Cory Moruga Shares and the Innis Trinity Shares on behalf of the purchaser. The SPA is subject to certain regulatory, joint venture partner and third-party approvals. Completion of the transaction is expected in Q4 2018.

Steeldrum is also the parent company of Talon Well Services Ltd ("Talon"), which owns a drilling rig, suitable for the Company's planned exploration activities in the South West Peninsula, and a production rig located in Trinidad. The purchase of Talon is not part of the transaction and the parties will separate Talon from the combined entity prior to completion. However, the SPA grants Columbus a first priority use of the two rigs at market rates.

Steeldrum currently engages Gelco Energy Consultants to provide Managing Director services for the Steeldrum group. Post completion of the transaction, the Company will continue with these arrangements on terms commensurate with the current Columbus management team.

The Company is aware Predator Oil & Gas Limited ("Predator") is party to a farm-in into the Innis Trinity field, owned by FRAM Exploration (Trinidad) Ltd ("FRAM") and ultimately owned by Steeldrum. That farm-in is unaffected by today's announcement.

About Steeldrum

Steeldrum has ownership in a number of petroleum assets in onshore Trinidad through subsidiary Companies including the Trinity Inniss Field, the South Erin Field and the Cory Moruga License containing the Snowcap field discovery. The Innis Trinity field is a mature field producing from Herrera turbidite reservoirs, governed by an Incremental Production Service Contract ("IPSC") with Petrotrin. The initial term of the IPSC is due to expire in January 2020. The Company would expect the IPSC to be extended at that time. The field has produced circa 23mmbbl to date with approximately 4.0 mmbbl of remaining recoverable reserves. There are opportunities to optimise the existing well infrastructure to increase daily production. The IPSC is subject to an existing farmout agreement with Predator, who are expected to fulfil at least 2 of the Minimum Work Obligation ("MWO") wells and progress a planned EOR Project. The total MWO is 7 wells. As part of the Predator transaction, Predator has the right until mid-2019 to purchase FRAM Exploration Trinidad Ltd ("FRAM"), the Steeldrum group company that is party to the Innis Trinity IPSC. The purchase price for FRAM would be US$4.2m.

The South Erin field targets the Lower Forest and Cruse deltaic sands. These are known to be the most prolific oil producing sands throughout the Southern Basin. The field currently produces from the Lower Forest sands, and Steeldrum have successfully tested the Cruse sands in the ER 98 exploration well. There has been a recent production boost with the ER 105 well encountering a new compartment with fully charged Lower Forest sands. Only 10% of the block has been explored to date and the Company would expect to evaluate the remainder of the block. Based on the successes achieved in the existing field, and the regional trends of the targeted reservoirs, there is great potential for additional discoveries. The South Erin field is governed by a Farmout Agreement with Petrotrin that expires in December 2021 and the Company would expect the Farmout Agreement to be extended at that time. The Agreement has an outstanding MWO of 5 wells.

Cory Moruga is governed by a licence issued by the Ministry of Energy and Energy Industries. The licence is currently with the Ministry for renewal along with a Field Development Plan for approval. The Development Plan is based on the Snowcap Field discovery which was first drilled and tested with the Snowcap-1 exploration well in 2010. Upon Field Development approval, the existing Snowcap-1 will be re-instated as the first development well and further development drilling will follow. During an extended well test in 2015, Snowcap-1 averaged 120 bopd.

For the financial year ended 31 December 2017, the Steeldrum group had US$13.7 million in assets, US$8.36 million in equity, US$5.36 million in liabilities (including a US$1.25 million loan repayable in 2020) and made a gross profit of US$0.83 million and net loss of US$1.96 million (after depreciation charges of US$1.56 million).

The Lind Facility

Details of the Lind Facility are as follows:

The Company has the right to drawdown funds as follows:

• up to US$2.25 million of convertible loans for a period of up to 180 days after execution of the Lind Facility (in two tranches of US$1.0 million and US$1.25 million);

• a further US$ 1.0 million of convertible loans, in tranches of US$0.5 million each, subject to mutual agreement with Lind and the Company having a minimum market cap of £25 million;

Should the Company not exercise its drawdown rights within the 180-day period, the agreement will lapse and no funds will be available.

If the Company elects to drawdown the first US$1.0 million ("First Tranche"), there is a 120-day repayment free window before repayment of the loans over a 20-month period during which Columbus can, at its election, repay at a monthly rate of US$60,255 in cash or by issuing shares at the prevailing market price on each monthly payment date. In the event the Company elects to drawdown the second tranche of US$1.25 million ("Second Tranche"), repayments of the Second Tranche will be over a 20-month period in either cash or equity in a similar manner to the First Tranche, with the monthly cash payment being US$75,319.

Lind has the right to convert the outstanding balance on the Lind Facility to equity at a conversion price of 8.1 pence per share. There are no restrictions on this conversion right whilst outstanding balances remain on the Lind Facility.

Any subsequent drawdown, to a maximum aggregate total of US$1.0 million over the life of the Lind Facility ("Third Tranche" or "Fourth Tranche") is by mutual agreement of the parties and would be on similar terms and conditions as the First and Second Tranche. Lind has no rights to increase the size of the Lind Facility.

Columbus has the right to buy-back any outstanding balances of the Lind Facility (the "Buy-Back") at any stage during the term of the loan without penalty, although Lind have the exclusive right to convert up to 25% of any Buy-Back to equity at a share price of 8.1 pence per share.

Upon execution of the Lind Facility, Columbus has granted Lind 5,472,136 options in Columbus shares, exercisable at 8.1 pence per share. Additional share options will be awarded to Lind if the Company elects to draw down the Second Tranche at the same exercise price. Further share options will be issued under similar conditions if the Third Tranche and Fourth Tranche are drawndown.

Goudron Performance Enhancements:

The Company has consolidated the operational improvements initiated in the Goudron Field including recruitment of HSE and Operations personnel allowing continued production optimisation wellwork and the ramping up of water injection activities. Continuous and daily well optimisation initiatives are now a key component of the Company's routine workflow, including the following activities:

· Installed the first custom designed Progressive Cavity Pump ("PCP") in well GY-670 to alleviate the sand production issues preventing continuous production. GY-670 will become a key water injection support target due to its proven oil rate potential which achieved over 1,100 bopd when initially online in 2014.

· The wellwork programme continues to focus on low cost existing well optimisation and stimulation as well as trialling sand alleviation downhole solutions.

· Installed the first batch of long stroke length pump jacks on key high pump submergence wells in June 2018 which will both allow higher individual well production rates and reduce wellbore sand-face stresses that can contribute to sand production.

· Proved Water-flood Pilot "A" well, GY-667 can accept a continuous rate of up to 1,000 BWPD preparing the ground for potential accelerated pilot response results.

Solid production base delivering cash flow:

The emphasis of the Goudron well optimisation programme continued in 2Q 2018 with continuous workover rig activity and low-cost stimulation work. High oil-rate potential wells have also tended to exhibit sand-related production problems leading to a strategy of trialling alternative downhole configurations, including sand filtration technology, and custom designed PCPs.

Production in Q2 2018 was as follows:

· April oil production: average of 574 BOPD

· May oil production: average of 532 BOPD.

· June oil production: average of 553 BOPD.

· Peak production: 648 BOPD, demonstrating High Case potential.

The Company notes that it has consolidated a solid, production base that is cash flow positive. This allows the Company to maintain its capital base and reinvest cashflow profits to grow the business. Profitable day to day operations from the Goudron field (with 2P reserves of 11.8 mmbbl) provides a robust platform for future growth through the SWP assets and M&A activity as well as the upside potential of waterflood responses.

Goudron Waterflood Pilot Activities:

The Goudron Waterflood Pilot A commenced in June 2018, following a period of trial injection and interference testing in other areas of the field. This initial approved waterflood pilot is designed to establish support to wells GY-665 and GY-664, both of which proved capable of oil production rates of greater than 300 bopd at original pressures when drilled in 2014.

The oil production enhancement activities of 1H 2018 have also allowed produced water capacity to increase from 600 BWPD up to 1,200 BWPD. These greater water volumes are available for re-injection and will allow faster response times in the pilot areas, as well as being successfully employed in the continuous well stimulation operations.

The Company has established that water injectivity is sustainable in the wells tested at the rates required for pilot responses to be achieved in reasonable time frames. The simple produced water re-injection facilities are in constant use and capable of being scaled up to higher rates. Further increments on produced water availability are being studied to allow multiple simultaneous pilot activities to be planned with faster response times.

Spain:

In Q2 2018, costs incurred in Spain totalled US$ 0.15 million, including some "tail-end" legacy costs associated with the formal extinction of the La Lora Concession in March and completion of a Collective Dismissal Process ("CDP") under Spanish law affecting 14 employees. Since end Q1, the Company has been seeking to maintain the Ayoluengo oil field on a low-cost care and maintenance basis whilst the commencement of a re-tender process for the award of a new licence is awaited from the Spanish Authorities. The re-tender is now expected to commence in Q3 2018. The Company is now undertaking technical work in preparation for the re-tender and is also in dialogue with another public company who has expressed an interest in bidding for the new licence jointly in partnership with the Company. That company is currently undertaking its own analysis and a decision on whether a joint bid will be attractive for Columbus and that entity will be made during Q3.

Health, Safety & Environment ("HSE"):

The reorganisation of the Company HSE structures continued with the appointment of a new, highly experienced, field-based HSE Manager in May 2018, accompanied by immediate focus on rejuvenation of proactive HSE systems. Focus on leading indicators such as Near Miss and START Card reporting has allowed all operations staff to re-focus on job safety as the Goudron Field continues to see an increase in wellwork, facilities and water injection operations activity. Bridging the existing Goudron HSE systems to the newly increased production operations in the SWP Field activities has also been conducted.

The ramp-up of water injection activities continues to allow the target of all produced water being re-injected into the reservoir to be prioritised.

Fully funded 2018 work programme continues

Un-audited Q2 2018 Financial Results Summary

· Cash flow from operations in Q2 2018: US$0.94 million operating netback achieved after payment of operating costs, workovers and well interventions, royalties and SPT (US$0.70 million in Q1 2018).

· Cash in hand: US$2.4 million at 30 June 2018 (US$4.1 million at 31 March 2018), after payment of the following additional costs in Q2 2018:

o Capex: Total capex of US$0.50 million incurred during quarter (US$0.86 million Q1).

o Abandonment Fund escrow payments of US$0.18 million, (US$ nil in Q1) - now required under Goudron IPSC

o Goudron Performance Bond payment of US$0.14 million, (US$ nil in Q1) - now required under Goudron IPSC

o Lind loan repayments of US$0.37 million (US$0.40 million in Q1)

o Spain legacy and running costs of US$0.15 million (US$0.67 million in Q1)

o M&A costs, including BOLT transaction, costs of US$0.14 million (US$ 0.02 million)

· Average realised sales price from Goudron operations in Q2 2018: US$60.00 per barrel (US$58.41 per barrel in Q1) - peaking at US$62.35 per barrel in June.

· Gross Revenues during Q2 2018 of US$3.01 million, all monies received by the Company in Q1 2018 from Petrotrin before month-end (US$ 2.64 million in Q1).

· Lind Partners loan position: Loan balance reduced to US$0.59 million at end June 2018 (US$0.96 million at end March 2018). First tranche loan of US$ 1.825 million, taken out in December 2016, now fully repaid.

· It is still forecast that all planned activities, business costs and liabilities in 2018 in Trinidad, Spain and London, including loan repayments, will be fully funded from production revenues and available cash, as per the approved 2018 Budget. The addition of the Steeldrum acquisition may bring added financial pressures and the Lind Facility, which provides access for the Company to draw funds of up to US$3.25 million, as described above, will provide important additional "financial insurance" in the event of any increased or un-expected costs arising from the integration of the two companies.

Qualified Person's statement:

The information contained in this document has been reviewed and approved by Stewart Ahmed, Managing Director (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 32 years of relevant experience in the oil industry.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Contact Information

Notes to Editors:

Columbus Energy Resources Plc is an oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America. Initially focussed on maximising production from its core Goudron field asset, Columbus is cashflow positive and aims to create transformational growth by developing its exploration targets across its portfolio in the South West Peninsula ("SWP"), which lies in the extreme southwest of Trinidad and consists of stacked shallow and deep prospects, in a capital efficient and disciplined manner.

Columbus is guided by the following core values; safe and sustainable, stronger together, creative excellence, positive energy, totally trusted and personally responsible.

The Company is led by an experienced Board and senior management team with supportive shareholders and intends on leveraging its expertise and experience to build an attractive and diversified portfolio of assets across South America in order to build an oil production led South American exploration business. 

To find out more, visit www.columbus-erp.com or follow us on Twitter @Columbus_ERP.