Columbus Energy Resources said today that it had signed a sale and purchase agreement to buy out its partner’s share in the Icacos field, onshore Trinidad.
Columbus currently has a 50% working interest in the field and wants to buy Touchstone Exploration’s 50% equity stake.
The effective date of the transaction, which is subject to regulatory approvals, is April 1, 2018.
Columbus will pay at least $500,000 for Touchstone’s current net 11 barrels of oil per day.
It will pay the consideration over time until January 1, 2021. Touchstone subsidiary Primera will also receive, in the event of increased production, 25% of any net revenue above the current baseline.
Columbus will be entitled to 100% of all revenue from Icacos from January 1, 2021.
Columbus executive chairman Leo Koot said: “We are pleased to have signed a sale and purchase agreement for the purchase of a 50% interest in the Icacos field and we look forward to quickly closing the transaction, further strengthening our position in the SWP, so that we can increase production from Icacos and integrate the acreage into our regional strategy.
“We are on track to building a core exploration, appraisal, development and potentially significant production hub in the South West Peninsula of Trinidad. In line with our ongoing focus on capital discipline, we are not expecting to pay any upfront payments for the Icacos purchase.
“The consideration will be deferred and mirror the actual production levels from the Icacos field. All operational activities on Icacos will be funded from existing cash resources.”
Mr Koot was managing director of Middle Eastern firm Taqa’s North Sea unit for five years.