Interim Results for 6 months ended 30 June 2017

13 September 2017

Columbus Energy Resources Plc

("Columbus", "CERP" or the "Company")

Unaudited Interim Results for 6 month period ending 30 June 2017

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, is pleased to announce its unaudited Interim Results for the 6 month period ending 30 June 2017, extracts of which are set out below and a full copy of which will shortly be made available from the Company's website www.columbus-erp.com

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014

Enquiries:

Executive Chairman's Review

The Company entered 2017 having successfully resolved the financial difficulties it had to contend with in late 2015 and throughout 2016 and with plans to re-commence the Goudron infill drilling programme and other field activities in Trinidad. The period covered by the Interim Results, however, saw fundamental changes to the management, direction and strategy of the Company, including:

· Major changes to the leadership of the Company with the appointment of a new Executive Chairman, Chief Financial Officer ("CFO"), Managing Director (Trinidad) and other Board changes with various directors stepping down.

· A change in the Company name from LGO Energy plc to Columbus Energy Resources plc on 15 June 2017 and the announcement that the Company plans to grow its footprint beyond Trinidad into South America in due course.

· Following the leadership changes, significant changes to the operational strategy were initiated in Trinidad in late 1H 2017 designed to increase production and revenues to achieve a positive cashflow position across the Group before the end of 2017.

· Significant reductions in London G&A costs, including a change of office location and staffing reductions, resulting in savings of over 30% to date.

The period also saw the termination of the La Lora Concession in Spain by the Spanish authorities in late January 2017 leading to the subsequent suspension of operations at the Ayoluengo Field, the approval of a capital consolidation in early March 2017 involving a consolidation of every 20 Existing Ordinary Share into one Consolidated Share and a £2.5 million equity raise in late March at an issue price of 2.2 pence per share.  

I believe the major changes in both leadership and strategy, late in the period covered by the Interim Results, will provide a new foundation for Company growth, with the main emphasis of senior management being on increasing oil production and revenues in Trinidad to a level of around 550 bopd before the end of 2017 and 900 bopd by end of 1H 2018. The increase in production, which I am confident can be delivered from existing cash resources, together with the additional revenues from those increases and the cost savings which have already been implemented in London, should allow the Company to be cashflow positive in late 2017. This cashflow positive position, together with the additional funds which Lind Partners, LLC have now committed to provide in Q4 2017, will enable the Company to accelerate, implement and internally fund a number of new initiatives to grow production, including the additional Goudron waterflood pilots and well optimisation work. I am excited by the numerous operational initiatives that have already been identified in the past few months, a number of which have already been implemented on the Goudron field with some success.

Most importantly, the additional funds will enable the Company to progress towards implementing its hugely exciting exploration programme on its South West Peninsula ("SWP") assets. It is now the Company's view that it should be in a position to internally fund the first few exploration wells on our SWP portfolio without the need for a partner to jointly fund the programme. Whilst Columbus may still look to source a partner to farm-in to the SWP programme, as a means of de-risking and potentially speeding up the programme, this is no longer considered to be an essential requirement to unlock the huge potential the Company sees in the SWP portfolio and, subsequently, to potentially deliver transformational growth in the medium-term.

I was also delighted when the Company recently received the Certificate of Environmental Clearance ("CEC") for the Goudron Field Water Injection Pilot "A" from the Environmental Management Authority ("EMA") of Trinidad. This was a very important milestone, which was completed significantly earlier than expected, and the Company has effectively brought forward plans for commencement of injection under the waterflood pilot programme by nearly a year.

Highlights

For the 6 month Period ending 30 June 2017

FINANCIAL

· Revenue for period of £2,460,000 (1H 2016 £1,921,000), an increase of 28%

· Gross profit for period was a loss of £42,000 (1H 2016 a loss of £130,000)

· Pre-tax group loss for period of £1,964,000 (1H 2016 loss of £1,925,000)

· Cash in hand of £1,684,000 at 30 June 2017 (1H 2016 £1,170,000)

CORPORATE

· Major leadership changes implemented, including appointment of New Executive Chairman (Leo Koot), CFO (Gordon Stein) and Managing Director, Trinidad (Stewart Ahmed) in May & June 2017.

· Steve Horton, Neil Ritson and James Thadchanamoorthy stepped down as directors during the period and Fergus Jenkins stepped down in early August 2017.  

· A capital consolidation approved by shareholders at a General Meeting in early March 2017 involving a consolidation of every 20 Existing Ordinary Share into one Consolidated Share.

· A £2,500,000 (before expenses) equity raise in late March at an issue price of 2.2 pence per New Ordinary Share.

· A change in the Company name from LGO Energy plc to Columbus Energy Resources plc on 15 June 2017 and announcement that the Company plans to grow its footprint beyond Trinidad into South America in due course.

· Significant reductions in London G&A costs implemented, including a change of office location and staffing reductions, resulting in savings of over 30% to date.

· The Company has also recently amended certain aspects of the convertible loan facility it has with Lind Partners, which includes an immediate increase in the conversion price by 50% for the current loan amount of US$1,344,000 from 3p per share to 4.5p per share, the granting of 17,997,308 shares to be escrowed from issue for at least six months and the conversion of the next monthly repayment to shares.

· Confirmation from Lind that they will exercise their right to provide an additional US$750k convertible loan to the Company in Q4 2017 which will enable an acceleration of certain operational initiatives to be undertaken.

OPERATIONAL

· Group oil sales in the period from Trinidad in 1H 2017 were 64,501 barrels net to Columbus (1H 2016: 84,470 barrels). Average production from Goudron in Q2 2017 was 327 barrels of oil per day ("bopd").

· Spanish oil production ended on 31 January 2017 due to termination of the licence. Sales of oil produced in January 2017 and from storage totalled 9,154 barrels (1H 2016: 24,024 barrels).

· Goudron Field oil production was boosted in 1H 2017 by initial flow from the newly drilled Mayaro Infill wells GY-682 and GY-683, although production from these wells has since reduced substantially due to lack of pressure support, leading to major changes in operational strategy.

· Tropical Storm Bret, the worst storm to hit Trinidad in over 10 years, resulted in power line outages in June 2017 which affected Goudron Oil production for 10 days continuously.

· A programme of Goudron Field well optimisations was initiated in late June 2017 commencing with the new pump installation in GY-664.

· The Company submitted the Goudron Field Water Injection Pilot "A" Proposal to Petrotrin for approval in June 2017, applied for the CEC to allow the required modifications to allow Produced Water Reinjection and successfully received the CEC in early September 2017.

· Procurement of facilities for the Waterflood Pilot implementation commenced in 1H2017. The first injectivity testing for planned Pilots A, B, C and D commenced in June 2017.

· Bonasse field wells in the BOLT license area were re-entered and placed on production and the first oil sales were initiated under Columbus managed operations during 1H2017.

· The Company has recently appointed a specialist adviser to help close out the BOLT acquisition and anticipates closing the transaction in Q4 2017.

NOTES

All figures are net to CERP unless otherwise stated.

Trinidad & Tobago

Strategically the Company remains focussed on Trinidad, which represents the majority of near-term activity and significant long-term growth potential, both within existing assets and in additional assets acquired through third-party arrangements or directly from the Trinidad and Tobago government. The Company holds interests in three producing fields; Goudron, Icacos and Bonasse, and in a number of private petroleum leases where production has yet to be established.

Goudron

Columbus ERP owns the rights to the Goudron Field, by way of an Incremental Production Service Contract ("IPSC"), through its wholly owned subsidiary, Goudron E&P Limited ("GEPL"). The Goudron Field lies in the Eastern Fields Area in south eastern onshore Trinidad. Under the terms of the IPSC the Company acts as a service contractor to the Petroleum Company of Trinidad & Tobago ("Petrotrin") who reimburse Columbus on the basis of the oil sales and oil price.

The Goudron Field contains two separate reservoir packages; the shallow Mayaro (formally referred to as Goudron) Sandstones and the deeper Gros Morne and Cruse equivalent C-sands. During infill drilling in 2014/15 a deeper, pre-Cruse, interval of turbidite sands was penetrated and evaluated and this has added an additional, previously unexplored, deep resource for future exploitation.

Columbus has 11.8 million barrels ("mmbbls") of Proven and Probable Reserves ("2P") in the Goudron Field and is currently producing light sweet oil with an average API gravity of 37 degrees. In addition to its reserve base LGO has significant low risk, onshore upside in the Trinidad portfolio including 22 mmbbls of most-likely ("P50") Contingent Resources ("2C") in the Goudron Field and an estimated gross P50 unrisked oil in place of 1.3 billion barrels in the South West Peninsula leases.

The Company's plans for the development of the Goudron Field initially comprised four distinct phases:

Phase 1: reactivation of existing wells and the repair and replacement of infrastructure

Phase 2: drilling of the deep reservoir (C-sand) to further raise production and establish the basis for an EOR (water flood) project

Phase 3: infill drilling of the shallow reservoir (Goudron or Mayaro Sandstone) and the simultaneous carrying out of a pilot waterflood project in the C-sands

Phase 4: a full-field EOR project depending on results of the pilot scheme

Phases 1 and 2 were completed in 2012-2015. Phase 3 is being substantially altered by the new management to reduce the short-term reliance on infill drilling and focus instead on the maximum utilisation of the existing Goudron Field well stock and facilities. Production from the field peaked in early 2015 at just over 2,000 bopd due significantly to the contribution from one well, GY-670, at over 1,100 bopd.

The Company entered 2017 with a plan to drill at least 10 new Mayaro infill wells on the Goudron field at an estimated cost of US$500k each.

The Company confirmed that the first infill well in the planned 2017/18 well campaign, GY-682, was spudded on Saturday 4 March 2017 at the Goudron Field. Well GY-682 was targeting a net 200-foot thick Mayaro Sandstone pay interval at a depth between 300 and 1,000 feet depth and was forecast to have average initial production rates of 45 bopd of light sweet crude, with low decline rates. The well reached total depth ("TD") at 1,145 feet measured depth on 8 March 2017 and perforated over a 273-foot interval of net oil pay within the Mayaro reservoir was brought onto production at a stable initial rate of 55 bopd of light sweet crude oil. However, due to lack of pressure support in the reservoir, production from that well fell consistently after a few weeks and was only producing 8 bopd by 30 June 2017. It is evident that pressure support from the planned water-flood programme is required to increase the production on GY-682 to the levels approaching those seen at the start of the well's production.

A similar situation occurred on the second of the infill wells, GY-683, which was spudded on 31 March 2017 and reached TD at 1,250 feet measured depth on 4 April 2017. The well was completed on 9 April 2017 and was initially free flowing (i.e. without pumping) with an initial rate of 80 bopd of dry oil with API gravity of approximately 44 degrees. It was anticipated that once the natural flow period ended and the well was placed on pump, which actually took place after a few days of production, that an initial stabilised rate estimated to be approximately 65 bopd would be achieved and sustained. However, like GY-682, production rates from GY-683 reduced consistently over the course of the next two months due to lack of pressure support within the reservoir and was producing 18 bopd by the end of June 2017.

Production levels in 2Q 2017 were also affected by Tropical Storm Bret, the worst storm to hit Trinidad in over 10 years, and resulted in power line outages in June 2017 which affected Goudron Oil production for 10 days continuously. Average production in Q2 2017 was 327 bopd with a total of 62,505 barrels being sold from Goudron during 1H 2017.

As a result of the well performance results on GY-682 and GY-683 and also following a review of all operations in Trinidad by the new leadership team in June and July 2017, the following targeted initiatives, focused on optimising recovery and production, are being implemented in 2H 2017 using existing cash resources:

· The Mayaro sand infill programme is now on hold; as referred to above, Mayaro well infill drilling will be planned in conjunction with waterflood implementation projects in future

· The fast-tracked implementation of a simultaneous multi-pilot and multi-interval approach to Goudron Field water-injection, commencing Q3 2017, as opposed to the previously announced single pilot water-flood strategy which targeted just one reservoir interval

· A new Goudron Field well stimulation programme, targeting currently producing wells along existing mapped faults in the Goudron Mayaro reservoir

· The installation of smart pumping systems using downhole sensors, firstly on well GY-670

· Well interventions in the existing Bonasse field wells to re-activate continuous oil production aimed at increased production in Q4 2017

The potential of waterflooding as a technique to raise Goudron Field C sand and Mayaro reservoir recovery factors is to be tested through targeting pilot areas for selective water injection. GEPL submitted the Goudron Field Waterflood Pilot "A" Proposal to Petrotrin in June 2017 and received the CEC in early September 2017. The objective of the pilot is to increase oil rate and recovery in the GY-665 area C sand through water injection at selected well GY-667, GY-668 and GY-209. The intention of Pilot "A" is to utilize the existing Goudron Field produced water as the source for re-injection and target water injection to support key production wells GY-664 and GY-665. The Company has indicated to Petrotrin that a number of additional pilot injection areas will be proposed for possible simultaneous implementation including in the Mayaro reservoir and also to target pressure support to C Sand well, GY-670.

Early results from the new operational strategy are very encouraging with some wells increasing production more then 10-fold. Further information will be provided as the programme develops but the target of achieving sales volumes of around 550 bopd by the end of 2017 remains a key focus of management.

South West Peninsula

Elsewhere in Trinidad, Columbus, through its wholly owned subsidiary Lenigas Trinidad Limited ("LTL"), has developed a dominant lease position in the South West Peninsula ("SWP"), an area of underexplored land adjacent in the highly prolific East Venezuelan Basin with contiguous hydrocarbon geology to that found in nearby Venezuela. LTL holds rights to approximately 11,000 gross acres of prospective petroleum rights, including the shallow Bonasse and Icacos oil fields.

LTL holds all relevant exploration data in the SWP and has acquired, with Beach Oil Field Limited ("BOLT"), a proprietary soil geochemical survey and, in collaboration with the MEEI, a high resolution airborne gravity and magnetic dataset. The data and the lease position when taken together give LTL a significant competitive advantage in this underexplored region, where only one deep well, FRM-1, has been drilled and shallow oil fields have been discovered. This single deep well was drilled in 2008 to a depth of approximately 11,700 feet and discovered oil in the Lower Cruse formation before being abandoned following an accident.

In early 2017, LTL recently signed a Sale and Purchase Agreement ("SPA") with BOLT to acquire the entire shareholding in BOLT and thereby place the operatorship of the leases held by BOLT in LTL's hands.  As discussions with various parties have not been completed LTL has delayed the completion of the acquisition of BOLT and as a result the longstop date in the SPA, previously 30 April 2017, was mutually waived by the parties.

The Company has recently appointed a specialist adviser to help close out the SPA and other outstanding matters and the Company anticipates closing the SPA in Q4 2017.

Notwithstanding the decision to defer completion, LTL and BOLT commenced a handover of operations in late Q1 2017. During the last week of April, LTL transported approximately 200 barrels of oil from Bonasse to the sales point at Point Fortin, approximately 30 kilometres from the field, and this was sold to Petrotrin in May 2017. LTL is in a position to undertake regular oil sales and to start to increase production rates by the recommissioning of existing wells and equipment at the field. Once this SPA closes, LTL also plans to continue work to reactivate the Bonasse Oilfield which was previously shut-in since mid-2016 and has plans, in due course, to drill several new wells at Bonasse which it considers to be underexploited.

Operations at the Icacos Field have been restricted to routine well maintenance by the Operator in order to maintain continuous production. An application to the MEEI for a new PPL has been made for the Icacos License area which includes the Icacos Field and is a pre-requisite for further development work to take place. An extension of the PPL covering the BOLT license area has also been applied for with the MEEI prior to commencing additional work, including well interventions and the possible drilling of additional wells, to raise production levels.

Gross unrisked prospective resources of over 1.3 billion barrels of oil have been estimated in over 8 prospects and leads within the Columbus' SWP lease interests and in the medium term, the Company plans to complete the evaluation of the SWP leases and to propose the drilling of a programme of exploration wells with multiple potential reservoir targets. Preparation for drilling is expected to start mid-2018 when the commercial negotiations have been completed and all necessary Government approvals received.

Spain

During 2016, the Company maintained production operations at the Ayoluengo Field in northern Spain and continued its dialogue with the Spanish authorities on extending the existing La Lora Concession ("Concession") for a further two 10-year periods. Columbus' Spanish subsidiary, Compañía Petrolífera de Sedano, S.L.U. ("CPS"), was advised by its Spanish lawyers that it had a very strong case for an extension, notwithstanding that the hydrocarbon laws in Spain had changed extensively over the preceding 50 years of the Concession, which was originally awarded in 1967.

Over a four-five year period leading up to 2017, CPS prepared and submitted to the Spanish authorities' a thorough legal, technical and commercial case for the continuation of oil operations at Ayoluengo, where additional primary oil production employing the existing wells, and side-tracks from them, could be viably obtained. Further potential for secondary or enhanced oil recovery were also presented. The Company spent significant time, effort and costs in the years leading up to 2017 in its attempts to secure the licence extension.

On 27 January 2017, the Spanish Cabinet of Ministers came to a final decision, based on interpretation of applicable law, and issued a Royal Decree declining CPS's application for an extension and allowing the Concession to expire, effective at midnight 31 January 2017. This decision, although not entirely un-expected, was extremely disappointing and frustrating, especially coming only three days before the licence expiry date, leaving the Company very limited time to respond to the official notification and with very real implications for all CPS employees, contractors and the local community which relied on the Ayoluengo Field for local economic benefit and employment. This was, in part due to the lack of a government in Spain throughout 2016.

As a result of the Spanish decision, CPS had no choice but to suspend all petroleum activities at the Ayoluengo Field in accordance with best international standards, including the employment contracts of most operational staff and immediately submitted a formal letter of interest to the Ministry of Energy, Tourism and Digital Agenda in order to obtain a new 30-year concession over the Ayoluengo Field.

Since late January 2017, CPS has maintained the suspended Ayoluengo Field on a "care and maintenance" basis and carries out regular inspections through its local operational manager in order to meet its remaining regulatory and legal obligations. This includes a weekly inspection report received by Company management. Before a new tender process can be started, as described below, the Spanish authorities have to formally close out the licence through the approval of an "abandonment plan", even though this is, in practice, not a true abandonment (in oilfield terms) but a formal suspension of the field. In effect, this is done to ensure CPS has applied proper due process in its suspension activities. This process has, however, taken far longer than CPS and Company management would have wished, involving various inspections and the completion of many reports, documents and correspondence. At the time of issuing these Interim Results, it is understood that all outstanding matters have now been addressed to the satisfaction of the Spanish authorities and approval of the abandonment plan is imminent.

Throughout 2017, CPS and the Company have continued to meet our legal obligations to our local staff, including the making of ex-gratia payments, meeting all required employee taxation payments to the relevant authorities (even for suspended staff), as well as incurring various other ongoing costs for care & maintenance, accounting, regulatory, legal, insurance, etc. Whilst CPS managed to sell the remaining oil in storage at the end of January 2017, with revenues of 288,952 Euros being received in January and February 2017, CPS has been supported by the Company financially throughout; with costs of between 50,000-70,000 Euros per month being incurred. Whilst the Company has tried to keep these costs to a minimum, it has been a very frustrating few months and the Company continues to stress to the Spanish authorities that there is a need to move forward with the tender process as soon as possible.

It should be noted that CPS, through this difficult period, has received excellent ongoing support from the community local to the Ayoluengo Field, including the trade unions and local politicians, where there has been regular dialogue. Indeed, there have been a number of local demonstrations against the actions of the Spanish authorities (not against CPS), with the community supportive of the resumption of oil operations at the Ayoluengo Field as soon as possible. CPS and the Company wish to express our gratitude to our local management, staff and all other people supportive of our efforts to re-start production at the Ayoluengo Field at the earliest opportunity.

We are currently unable to assess the timing of any new award, but every effort is being made to expedite the process and we hope this will be commenced in early Q4 2017. Under European Union and Spanish legislation, the offer of a new concession requires a process of public tender in which the previous concession holder has preferential treatment. Prior to the Royal Decree the carrying value of the Spanish assets was £7.94 million which was fully impaired in the Annual Report and Accounts 2016.

CPS will look to apply for the new licence either on its own or with a partner and continues to examine the optimal route forward for the Company in this regard.

CORPORATE

The Company underwent a number of major changes to its leadership and Board composition during the period covered by these interim results and also during summer 2017:

· It was announced on 9 January 2017 that the Board of Directors was being restructured with immediate effect resulting in the termination of the post of non-Executive Chairman and the reduction in fees to the Chief Executive and the remaining non-executive directors. Steve Horton stepped down as Chairman on 10 January 2017 and Neil Ritson, the Company's Chief Executive agreed to combine his role with that of Chairman and simultaneously reduce his fee from £240,000 per annum to £200,000. This reflected a total annual saving to the Company of £120,000. The Company's non-executive directors; Michael Douglas and Gordon Stein, the latter of whom was appointed to the Board on 10 January 2017, accepted a new fee arrangement of £24,000 per annum, including their roles as chairman of committees, representing a further saving for the Company.

· The appointment of Leo Koot as Executive Chairman on 10 May 2017 and the resignation of Neil Ritson as Chairman & Chief Executive Officer. Mr Ritson left the Board immediately but remains as a Senior Adviser to the Company for a period of up to a year.

· The appointment of Gordon Stein, previously a non-executive director, as CFO on 15 June 2017 after James Thadchanamoorthy stepped down from his role as Finance Director with immediate effect.

· The appointment of Stewart Ahmed as Managing Director (Trinidad) on 16 June 2017. Mr Ahmed will be based in Trinidad full-time to drive the changes to the Company's operations in-country.

· The resignation of Fergus Jenkins from the Board on 1 August 2017. Mr Jenkins will remain as an adviser to the Company until 31 January 2018.

The new Executive Chairman, CFO and Managing Director (Trinidad) have all agreed to receive half of their fees for the first twelve months of their employment in the form of Company stock to be issued at the end of first year at a price of 2.2p per share, being the price at the time of the placement in March 2017 and broadly equivalent to the mid-market closing price of 2.18p on the day prior to the Executive Chairman's appointment.

The Company completed a capital consolidation, which was approved by shareholders at a General Meeting on 7 March 2017, involving a consolidation of every 20 Existing Ordinary Share into one Consolidated Share followed by an immediate sub-division of each Consolidated Share into one New Ordinary Share of 0.05p each and one Deferred Share of 0.95p each. The Directors considered that it was in the best interests of the Company's long term development as a public quoted company to have a more manageable number of issued ordinary shares and to a level which is more in line with other comparable AIM-traded companies.

The Company also obtained shareholder approval at the General Meeting on 7 March 2017 to send or supply documents and information to shareholders, who agree to this format, in electronic form and via a website. When a relevant document or information is made available on the Company Website and a member can always request a hard copy version of the document or information.

In the 6 months ending 30 June 2017, the Company raised a total of £2,500,000 (before expenses) through the issue of 113,636,374 new ordinary shares of 0.05p each in the Company at an issue price of 2.2 pence per New Ordinary Share, being a discount of approximately 12 per cent to the previous day's closing mid-price. The fundraising comprised a placing, including UK and Hong Kong based institutions, of £2.2 million by VSA Capital in conjunction with a fully underwritten offer of £0.3 million via PrimaryBid (the "Offer"). The Offer received a very strong response from investors and was fully subscribed with the Offer being placed on a "first come, first serve" basis and closed on 2 April 2017.

The Company announced it was changing its name to Columbus Energy Resources plc on 10 May 2017 and the change was effective from 15 June 2017.

At the end of Q2 2017, the debt outstanding to Lind was approximately US$1.524 million with all repayments having been made in cash. This debt had reduced to approximately US$1.344 million at the end of August 2017 (the "First Tranche"). On 10 September 2017, the Company executed the following value accretive amendments to the Funding Agreement:

· Lind agreed to increase the conversion price by 50% for the First Tranche to 4.5p per share from 3p per share upon completion of the deal.

· The Company granted Lind 17,992,308 shares, to be escrowed by Lind for at least six months from the date of issue (expected to be 23 September 2017).

· Lind has agreed with the Company that it shall receive the repayment of its next First Tranche monthly instalment in September 2017 in shares, totalling 2,307,692 shares at a conversion price of 3p per share.

· Lind also informed the Company that it intends on exercising its exclusive right to increase the Funding Agreement by US$750,000 (the "Second Tranche"), with the funds to be provided to the Company in Q4 2017. The Second Tranche is to be repaid by the Company over 24 months at a monthly rate of US$38,719 in cash or shares, with the Company exclusively determining the method of repayment on a monthly basis.

· Upon providing the Second Tranche, Lind will also be entitled to 7,692,308 share options, exercisable at a price 50% greater per share than the average share price for the 20 days prior to the date of award for a period of up to 40 months.

Outlook

Since 10 May 2017, the new management team has carefully evaluated the asset base and articulated a radically different operational and growth strategy which we have captured in our Strategic Roadmap (which will be included on our website on 14 September 2017). The low cost well interventions in the Goudron field have already yielded material success with some wells increasing production more then 10-fold. Field optimisation and well stimulation has proven the potential to grow Goudron production to the point where the field can generate sufficient free cash to grow the business using our own resources.

Water injection is the next material step towards transforming the business. With all formal approvals for the first pilot ("A") now in place, early indications from interference tests recently carried out look promising and we are ready to continue water injection in the major areas of interest.

Living within our means and the prudent application of growth capital will see Goudron production grow even further, building on our "multiple paths to production growth" approach. This will allow the business to drill, from our own cash resources, the most attractive exploration/appraisal wells in our under-explored SWP acreage. Preparation for drilling is expected to start mid-2018 when the commercial negotiations have been completed and all necessary Government approvals received.

Columbus is rich in growth opportunities and our strong reputation in-country should help us open up access to further brownfield re-development. Aligned with Petrotrin's ambition to grow native oil production, Columbus is well placed to expand beyond our present footprint.

During the course of 2018, we will continue to evaluate our operational results and mature our strategy to enter into the South American continent leveraging our regional operational experience.

Safe and environmentally sound onshore production operations, where there are proven reserves, will remain central to the Company's long-term growth proposition.

Leo Koot

Executive Chairman

12 September 2017

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.

GLOSSARY & NOTES

The estimates provided in this statement are based on the Petroleum Resources Management System ("PRMS") published by the Society of Petroleum Engineers ("SPE") and are reported consistent with the SPE's 2011 guidelines. All definitions used in the announcement have the meaning given to them in the PRMS.

FINANCIAL STATEMENTS

GROUP STATEMENT OF COMPREHENSIVE INCOMEFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

All operations are considered to be continuing (see note 2).

* During the six month period ended 30 June 2017, cost of sales included the depreciation of specific oil and gas assets of £633,000 (year ended 31 December 2016: £1,389,000).

GROUP STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2017

GROUP STATEMENT OF CASH FLOWFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

GROUP STATEMENT OF CHANGES IN EQUITYFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

1. Basis of preparation

The financial information has been prepared under the historical cost convention and on a going concern basis and in accordance with International Financial Reporting Standards and IFRIC interpretations adopted for use in the European Union ("IFRS") and those parts of the Companies Act 2006 applicable to companies reporting under IFRS.

The financial information for the period ended 30 June 2017 has not been audited or reviewed in accordance with the International Standard on Review Engagements 2410 issued by the Auditing Practices Board. The figures were prepared using applicable accounting policies and practices consistent with those adopted in the statutory accounts for the period ended 31 December 2016. The figures for the period ended 31 December 2016 have been extracted from these accounts, which have been delivered to the Registrar of Companies, and contained an unqualified audit opinion.

The financial information contained in this document does not constitute statutory accounts. In the opinion of the directors the financial information for this period fairly presents the financial position, result of operations and cash flows for this period.

This Interim Financial Report was approved by the Board of Directors on 12 September 2017.

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - Interim Financial Reporting as adopted by the European Union. Accordingly the interim financial statements do not include all of the information or disclosures required in the annual financial statements.

Basis of consolidation

The consolidated financial statements comprise the financial statements of Columbus Energy Resources Plc and its controlled entities. The financial statements of controlled entities are included in the consolidated financial statements from the date control commences until the date control ceases.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All inter-company balances and transactions have been eliminated in full.

Foreign currencies

The functional currency of each entity is determined after consideration of the primary economic environment of the entity. The group's presentational currency is Sterling.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

2. Segmental analysis

* Revenues were derived from a single customer within each of these operating countries.

** Operating loss includes management fee income/expenses charged by the Company to its subsidiaries.

*** As operations in Spain have only been temporarily suspended pending a new application for a new licence, it is still classified as an operating entity.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

2. Segmental analysis (continued)

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

2. Segmental analysis (continued)

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

3. Loss per share

In March 2017, the Company reorganised its share capital and reduced the number of ordinary shares in issue by a ratio of 20:1. The nominal value of each ordinary share remains unchanged at 0.05p. The number of shares disclosed in this note are following the capital reorganisation.

The calculation of loss per share is based on the loss after taxation divided by the weighted average number of share in issue during the period.

As the inclusion of the potential issuable ordinary shares would result in a decrease in the loss per share, they are considered to be anti-dilutive and as such, a diluted earnings per share is not included.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

4. Intangible evaluation assets

.

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

5. Property, plant and equipment

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

6. Called up share capital

In March 2017, the Company reorganised its share capital and reduced the number of ordinary shares, options and warrants in issue by a ratio of 20:1. The nominal value of each ordinary share remains unchanged at 0.05p. The number of shares, options and warrants disclosed in this note are following the capital reorganisation and the original exercise prices have been multiplied by 20.

During the period, 120.8 million shares were issued (year ended 31 December 2016: 255.1 million).

Total share options in issue

During the period, 4,163,231 options were issued (year ended 31 December 2016: 19,721,077). In addition to this, during the period, it was announced to the market that 25,000,000 option will be issued following the Company's next general meeting of shareholders. No options were exercised (year ended 31 December 2016: nil), lapsed (year ended 31 December 2016: nil) or cancelled (year ended 31 December 2016: nil).

Total warrants in issue

During the period, no warrants were issued (year ended 31 December 2016: nil), exercised (year ended 31 December 2016: nil) or cancelled (year ended 31 December 2016: nil). 204,090 warrants lapsed (year ended 31 December 2016: nil).

NOTES TO THE FINANCIAL STATEMENTSFOR THE INTERIM PERIOD ENDED 30 JUNE 2017

7. Events after the reporting date

On 11 September 2017, the Company announced that it had successfully renegotiated certain terms of the US$8.9m Convertible Security Funding Agreement with Lind Partners LLC including, an increase in the conversion price from 3p to 4.5p. Also, it was agreed that the next repayment be made in shares and Lind intends to provide a second tranche of funds to the Company in Q2 2017.

8. The financial information set out above does not constitute the Group's statutory accounts for the period ended 31 December 2016, but is derived from those accounts.

9. A copy of this interim statement is available on the Company's website: www.columbus-erp.com.