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Schroders' Brough sinks £3m into oil minnow on board shake-up

Schroders' Brough sinks £3m into oil minnow on board shake-up

Schroders co-head of pan-European small caps Andy Brough (pictured) has sunk £3 million into a capital raising by Trinidadian oil and gas explorer Columbus Energy Resources, following a boardroom shake-up.

Brough, who directly runs the £1.1 billion Schroder UK Mid 250 and £705 million UK Smaller Companies funds, will take 10% of equity in the business following the investment.   

His backing, which installs the house as one of the first major City institutions on the share register alongside long term backer Commerzbank, occurred alongside a £1 million open offer

Columbus Energy effectively relaunched this spring, changing its name from LGO Energy as industry veteran Leo Koot was installed as executive chair.

A series of capital reorganisations and a 2015 default - against a backdrop of the collapse in oil prices - have cut the share price 93% since 2014, from 120p to 7p following this week’s cash injection.

Koot said: ‘Columbus is thrilled to welcome such a reputable institutional investor like Schroders onto our share register.

‘The new senior management team has worked hard to transform the business and through our initiatives, we are still on track to be cashflow positive by the end of the year.

‘We could have carried on at our current activity levels, however Columbus has a rare opportunity to accelerate its 2018 work programme, pursue value adding M&A opportunities, further grow our production and in turn our cash flow, as a result of the investment by Schroders.’

Over the last three years Citywire + rated Brough has returned 58.8% versus a small cap peer return of 49.5%.     

Schroders declined to comment.

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