REG - Corcel PLC - Angola Operations Update

CorcelAnnouncement

31/05/2024 13:45

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RNS Number : 6975Q  Corcel PLC  31 May 2024

 

Corcel PLC

("Corcel" or the "Company")

Angola Operations Update

31 May 2024

Corcel Plc (London AIM: CRCL), the pan Angola-Brazil focused exploration and
production company, announces an update to its exploration and development
operations in onshore Angola.

Highlights:

o  Initial KON-11 drilling and well testing activities suspended

o  Focus turns to geological and geophysical data collection and studies

o  Onshore Angola remains a key commercial asset for Corcel - one with
multiple parallel avenues of value creation and development

Corcel Executive Chairman Antoine Karam commented: "While initial results in
Angola have not allowed immediate reactivation of the Tobias Field as
originally hoped, the block partners are undertaking a detailed review of how
to best utilize and exploit the two wells recently completed and further
develop the full potential of the block.  The Company and its block partners
believe KON-11 continues to offer significant developmental potential and that
these early testing results are by no means a definitive outcome.

Activities are accelerating at the Company's operated block, KON-16, which we
believe offers substantial upside and an attractive exploration risk/return
profile.

While the Company continues to actively review new projects as part of the
normal course of business, Corcel's interests in Angola remain key commercial
assets for the Company and we and our block partners believe that further
development will add significant value to our respective businesses as our
three blocks are advanced.

Meanwhile, the Company intends to host an investor event covering its current
plans and strategy in the near term, with further details to be provided."

Angola Operational Update:

The operator of Block KON-11, has reported to the block partners that it has
suspended well testing operations on TO-13 following inconclusive results.
After several weeks of well testing and engineering efforts the well has
produced minimal levels of water and oil to date.

With the initial well tests now completed, KON-11 operations will turn to
geology and geoscience efforts targeted to better understand these results and
how they might compare to the historic wells drilled and operated on the
Tobias field in KON-11.  The block partners believe that enhanced
understanding of the subsurface conditions including efforts made to better
understand the natural fracture system characteristics, any formation damage
and residual issues with water inflow should be the current focus.

Overall, the Company believes that the identified potential of the Tobias
reactivation effort, and KON-11 more broadly, remains significant, and that
these early results will both usefully inform next steps and lead the block
partners to ultimate commercial production in the block.

Activities at KON-16 during 2024 are expected to focus on G&G studies,
including review of existing seismic data, a review of the historic Tuenza-1
well which had oil shows in the pre-salt level and associated petrophysical
analysis.  The immediate goal of these efforts is to prepare an updated
prospect and lead table for consideration by the block partners.

The Company believes that KON-16 offers sizeable upside in the form of 1,029
MMbo unrisked recoverable leads in the pre-salt, where the Tuenza-1 well
(1960) was historically drilled on the block and oil and gas was found
bleeding from the core in the Cuvo formation.

Corcel Angola Overview:

The current Corcel Angola portfolio consists of three blocks in the onshore
Kwanza Basin:

Block KON-11 and KON-12 are considered brownfield redevelopment opportunities
as each block contains historic production from two separate fields, the
Tobias and Galinda fields, operated by Petrofina from the early 1960s through
to the 1990s, before both were shut-in it due to the encroachment of fighting
related to the Angolan civil war.  Combined historic production at both of
these fields was over 30 MMbbls.

Corcel's current unproduced prospective oil resources are estimated at:

o  KON-11 - 65.3MMbbls - 11.7 MMbbls net

o  KON-12 - 19MMbbls - 4.28 MMbbls net

 

KON - 11 (Non-Operated) (20% working interest - 18% net to CRCL)

o  Two new wells drilled indicating the presence of movable oil

o  12 historical wells + 2 new wells (Tobias Field)

o  Peak production of ~18,000 bopd in 1963

o  Reservoir: Oolitic fractured carbonates in the Binga Formation

o  API: 35°

 

KON - 12 (Non-Operated) (25% working interest - 22.5% net to CRCL)

o  8 historical wells (Galinda Field)+ 4 wells in the separate Pitchi
structure

o  Target reservoirs include the Cuvo Formation standstone and the Binga
Formation

o  API: 28-30°

KON-16 is considered a high-upside exploration block, with significant
pre-salt and post-salt targets and one historic well drilled on the license
that encountered oil shows in both the post and pre salt horizons.

KON - 16 (Operated) (35% working interest - 31.5% net to CRCL)

o  1 historical well with oil shows in the Cuvo formation

o  Sizeable pre and post salt targets across the block,

o  Post-salt 456 MMbbls - unrisked P50 (138 MMbo risked), 81.1 MMbls net

o  Pre-salt 1,029 MMbbls - unrisked P50 (223 MMbo risked), 215.9 MMbls

Corcel is the operator of Block KON-16 and a non-operator in Block KON-11 and
KON-12.

Politically, reactivation of the Kwanza Basin, remains a key governmental goal
in Angola, and interest in the most recent block bid rounds has led to
unprecedented interest in the region. Activities across the blocks are
expected to significantly increase in the coming years, which will ultimately
attract more service providers and lower costs of services, equipment and new
wells in due course.

Qualified Persons Statement:

Jennifer Ayers, a Geologist with over 25 years of relevant experience in the
oil industry and member of the American Association of Petroleum Geologists
and Geological Society of America, has reviewed this announcement for the
purposes of the current Guidance Note for Mining, Oil and Gas Companies issued
by the London Stock Exchange in June 2009.

For further information, please contact:

Antoine
Karam
Corcel Plc Executive Chairman

Development@Corcelplc.com (mailto:Development@Corcelplc.com)
 

Scott Gilbert
 
Corcel Plc CEO

Development@Corcelplc.com (mailto:Development@Corcelplc.com)
 

James Joyce / James Bavister /Andrew de Andrade
            WH Ireland Ltd NOMAD & Broker

0207 220 1666
 
 

Patrick
d'Ancona
           Vigo Communications IR

0207 3900 230

 

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulation (EU) No.
596/2014 which is part of UK law by virtue of the European Union (withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain.

 

 

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