Corporate Update and response to COVID-19

15 April 2020

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Corporate Update and response to Covid-19

Columbus, the oil and gas producer and explorer focused on onshore Trinidad and Suriname, has made a corporate update video available on its website. To view it, please visit https://columbus-erp.com/news/videos/

The key message of the update is that the Company is actively working to make itself resilient during the current downturn. The measures it has already taken are set out below. Despite the downturn, the Company is optimistic that it will emerge well placed for the future and is working on a number of items to realise this.

With respect to the Saffron well, testing is ongoing and the Company will present to shareholders a comprehensive review of the drilling, logging and testing of the well (and the Company's future plans for Saffron) on Monday 27 April in the form of a presentation and a video.

The highlights of the corporate update are:

Managing Company Costs

· Executive management - no cash salaries (for at least 3 months from March 2020)

· 40% reduction in salaries for employees (for at least 3 months from April 2020)

· 15% of employees laid off (for at least 3 months from April 2020)

· Cessation of non-essential capital expenditure

· Cash balance of US$2.56m, including US$780,000 in restricted cash (as at 31 March 2020).

Managing Third Party Costs

· Use of Lind Facility and Contractor Shares to conserve cash

Tony Hawkins, CEO of Columbus, commented:

"Given the downturn in the oil markets and the global markets, in part caused by COVID-19, we have taken aggressive measures to cut costs and protect our cash position. The Company has implemented a reduction in staff numbers, circa 15%, with the situation being reviewed at the end of June 2020. The Company is also implementing a temporary reduction in compensation with the aim of reducing the total compensation paid each month by approximately 40%. I am mindful that these cost reduction measures will have a real cost for our employees and we will work hard to minimise this where possible. I would like to thank our employees who have shown flexibility and pragmatism at this very difficult time. The Company is planning as necessary to minimise any disruptions to its operations.

Separately, the Company has reduced its external third party costs by a targeted issuance of shares pursuant to the Lind Facility and the Contractor Shares scheme. We are mindful of the dilution this has on shareholders but believe it is the prudent course of action given the scale of the downturn in the markets.

We look forward to providing a comprehensive update on the Saffron well on 27 April 2020.

Finally, I would encourage you to watch the accompanying video that is available on our website. "

Corporate Update

The Company has implemented the following:

· Reduction in cash payments to Executive Management: Executive Management will take 100% of their Executive Managements fees in shares, for a minimum of 3 months. This will save the Company circa US$200,000 in cash.

· Control of third party costs:

o Lind: issuance of 13,037,310 new ordinary shares to Lind in lieu of cash payments otherwise due in April 2020 (the "Lind Shares"). Such issuance is in accordance with the Company's rights under the 2019 Facility Agreement. The Board will consider future repayments on a month by month basis.

o Contractor Shares: issuance of 9,500,000 new ordinary shares to various contractors, as part of the Contractor Shares Scheme, which has been in place since mid-2018.

The Lind Shares and the Contractor Shares represent 2.58% of the 872,930,628 ordinary shares in issue prior to the issuance of the Lind Shares and Contractor Shares. The Lind Shares and Contractor Shares will rank pari passu in all respects with the Company's existing ordinary shares. An application will be made for the Lind Shares and Contractor Shares to be admitted to trading on AIM, ("Admission"), and it is expected that Admission will become effective and that dealings will commence on or around 20 April 2020.

Total Voting Rights

For the purposes of the Disclosure and Transparency Rules of the Financial Conduct Authority, the Board of Columbus hereby notifies the market of the following:

As at the date of this announcement, and after the issuance of the Lind Shares and the Contractor Shares, the Company's issued share capital will consist of 895,467,938 ordinary shares with a nominal value of 0.05p each, with voting rights ("Ordinary Shares"). The Company does not hold any Ordinary Shares in Treasury.

Therefore, the total number of Ordinary Shares in the Company with voting rights is 895,467,938. This figure may be used by Shareholders in the Company as denominator for the calculations by which they may determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

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 and Suriname. In Trinidad, the Columbus Energy group has five producing fields, one appraisal/development project and a highly prospective exploration portfolio in the South West Peninsula ("SWP"), which lies in the extreme southwest of Trinidad and consists of stacked shallow and deep prospects. In Suriname, the Company has an onshore appraisal/development project. Columbus aims to create transformational growth by developing its portfolio 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.