REG - Corcel PLC - Angola Oil and Gas Acquisition Completion - TVR

CorcelAnnouncement

02/06/2023 16:45

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RNS Number : 5529B  Corcel PLC  02 June 2023

Corcel PLC

("Corcel" or the "Company")

 

Angola Oil and Gas Acquisition Completion - TVR

02 June 2023

Corcel Plc (London AIM: CRCL), the extractive industries exploration and
development company, with interests across battery metals and oil and gas,
announces that with the signing of Risk Service Contracts KON-11, KON-12 and
KON-16 in Luanda, Angola last week and the satisfaction of the other
conditions precedent, it has now completed the acquisition of its 90% interest
in Atlas Petroleum Exploration Worldwide Limited ("APEX") as announced on 24
May 2023.

About the APEX Portfolio:

 

The APEX portfolio is located onshore Angola, and consists of interests in
three licences:

o  KON - 11 Non-Operated - 12 historical wells (20% working interest - 18%
net to CRCL)

o  KON - 12 Non-Operated - 8 historical wells (25% working interest - 22.5%
net to CRCL)

o  KON - 16 Operated - 1 historical well (35% working interest - 31.5% net to
CRCL)

 

KON-11 and KON-12 are considered brownfield development opportunities and
include the historically producing Tobias and Galinda fields, both drilled and
developed in the 1960s and 1970s by Petrofina, with combined historic
production over 30 MMbbls.  Both licences are operated by Sonangol (the
Angolan national oil company).

 

APEX's total reported unproduced contingent oil resources are estimated at:

o  KON-11 - 65 MMbbls, 11.7 MMbls net to CRCL

o  KON-12 - 19 MMbbls, 4.28 MMbls net to CRCL

 

All three blocks have significant post and pre-salt prospective resources,
both stratigraphic and structural with APEX estimating Prospective Resources
of:

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

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

 

Both the Tobias (KON-11) and Galinda (KON-12) fields were discovered and
originally developed in the 1960s.  Both reservoirs are in the Binga
limestone with 4-14% porosity and located at 700m and 1,900m respectively.
Peak production at Tobias was approximately 17,500 bbls/d and at Galinda was
approximately 2,700 bbls/d.  Historic total production, which started in 1960
and ceased in the early '80s, was 29MMbbls and 2.8MMbbls respectively. APEX
and Corcel believe that significant recoverable volumes of oil remain in place
at both locations and initial plans may include additional seismic work to
firm up drill locations, as well as a combination of vertical and horizontal
wells.  The development plan envisioned for KON-11/12/16 qualify for marginal
field fiscal terms, as outlined by the Angolan government, resulting in
advantageous royalty, tax and depreciation regimes.

 

Placing Settlement Update

 

The Company further announces that the international wire transfers for the
vendor equity subscription relating to 50,489,500 shares, also announced on 24
May 2023, are underway and the issue of the associated shares will be
announced when the funds have been fully received.  Admission for the
remaining 228,240,839 shares is expected to take place on or around 06 June
2023. The Company will make additional announcements in due course.

 

The Company further announces that the second tranche of the placing announced
originally on 28 March 2023 has now settled, and accordingly it has issued
85,714,285 new ordinary shares to Extraction SRL, a company controlled by Mr.
Antoine Karam.

 

Total Voting Rights:

Application will be made for 85,714,285 new ordinary shares to be admitted to
trading on AIM and it is expected that their admissions to AIM will take place
on or around 09 June 2023.

Following Admission of the second tranche of the 28 March 2023 placing shares,
the Company's total issued share capital will consist
of 1,309,312,406 Ordinary Shares, with one voting right per share. The
Company does not hold any shares in treasury. Therefore, the total number of
Ordinary Shares and voting rights in the Company will be 1,309,312,406 from
Admission. This figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if they are
required to notify their interest in, or a change in their interest in, the
share capital of the Company pursuant to the FCA's Disclosure Guidance and
Transparency Rules.

 

For further information, please contact:

Scott Kaintz
 
Corcel Plc CEO

020 7747 9960
 
 

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

0207 220 1666
 

Patrick d'Ancona
 
Vigo Communications IR

0207 3900
230

 

 

 

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