Columbus Energy Limited

August 23, 2010 18:11 ET

Columbus Energy Sells Its 5% Interest in Columbus Oil and Gas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 23, 2010) - Columbus Energy Limited (TSX VENTURE:CEL) has entered into an agreement, subject to regulatory approval, to sell its 5% interest in Columbus Oil and Gas to Robert Charles Laslett for a cash payment of US$42,500 and US$2,975,000 in royalty payments from production of the Isis Oil Field as follows:

  1. A royalty of US$0.275 per barrel of crude oil production in excess of four million barrels but less than six million barrels providing the Brent price during each quarterly period averages over US$70 per barrel up to a maximum amount payable of $555,000.
  1. A royalty of US$0.495 per barrel of crude oil production in excess of 6 million barrels up to a maximum payable under the agreement of US$2,420,000.

Mr. Laslett is the majority shareholder in British Virgin Islands Business Company Columbus Oil and Gas which has a 100% interest in Columbus (Tunisia) Oil and Gas, Inc. organized and existing under the laws of Tunisia.

Columbus Energy Limited purchased a 5% interest in Columbus Oil and Gas in July 2007 for cash payments of US$1,100,000 as per its news release of July 05, 2007 and as amended in its news release of October 26, 2007.

The Company has negotiated, subject to regulatory approval, a 20,000,000 unit private placement at $0.05 per unit to gross $1,000,000. Each unit will consist of one common share and a transferable five year purchase warrant allowing the purchaser to purchase an additional share at a price of $0.10. A finder's fee will be paid on a portion of the placement.

The Company is negotiating the terms and conditions with a European Company to make application and acquire a Coal property in Europe. Further details will be announced after the negotiations have completed.

This news release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, exploration results and future plans and objectives of the Company are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include market prices, exploitation and exploration results, availability of capital and financing, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, unanticipated environmental impacts on operations and other exploration risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Columbus Energy Limited
    Douglas W. Scheving
    Director and Corporate Secretary
    1 604 684 7619
    604 684 7346 (FAX)