REG - Corcel PLC - Angola Update

CorcelAnnouncement

03/11/2023 07:15

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RNS Number : 3221S  Corcel PLC  03 November 2023

Corcel PLC

("Corcel" or the "Company")

 

03 November 2023

Tobias-13 Well - Angola Update

Further to the announcement of 6(th) September 2023, Corcel Plc (London AIM:
CRCL) is pleased to provide an update on the drilling results of the Tobias-13
("TO-13") well in onshore Block KON-11, in Angola, where the Company has a 20%
working interest (18% net). The operator is Sonangol, the largest hydrocarbon
producer in Angola.

Highlights:

o  TO-13 drilling - at a downdip location from historic production - has
ended as planned at a target depth of 958.5m

o  Full Binga reservoir section (~120m) encountered in the well as prognosed
with several potentially productive zones seen in multiple intervals

o  Results confirm the ability to reactivate production through an early
production system ("EPS") and imply significant hydrocarbon potential
remaining

o  Rig move to second well location currently underway

Antoine Karam, Executive Chairman of Corcel, commented: "The initial results
of the TO-13 well are an important moment for Corcel and highly encouraging,
having successfully demonstrated hydrocarbons across multiple potentially
productive zones and multiple intervals.  TO-13 looks to cornerstone
development of a future EPS and provides Corcel with line of sight to
near-term revenue generation, and the testing programme will give us
invaluable data on how best to deliver on that goal.  We look forward to
providing further updates on activities at TO-14 as they progress."

Tobias-13 Drilling Results

The Operator, Sonangol, have advised Corcel that the Tobias-13 well penetrated
the entire Binga reservoir section (~120m column), with potential productive
zones seen in multiple intervals. The well concluded with a total depth of
958.5m, and was drilled in a downdip location from historic production wells,
indicating scope for significant remaining hydrocarbon production potential.

The drilling results for the TO-13 well were positive, with oil shows found
throughout the Binga reservoir in alignment with the distribution seen in
historic production wells in the Tobias field, confirming the ability to
reactivate production in the field.  Based on these results, the consortium
is proceeding to drill a second well Tobias-14 ("TO-14"), with a rig move
currently underway.

Tobias-14 and Well Testing

With a view towards implementation of an EPS, the consortium is proceeding
immediately to drill TO-14 (~1.3Km north-east of TO-13), with a spud date
expected in mid-November.  In line with TO-13, TO-14 drilling is expected to
last approximately 40-50 days, running concurrent with geological and
geophysical studies on TO-13 results.

Resuming exploration activities in Block KON-11, specifically reactivating
production in the Kwanza basin that has been shut-in since the 1990's,
represents an important milestone for the Angolan oil industry and for Corcel
itself.

The Company will make additional announcements on further progress at KON-11
in due course.

About KON-11 and the Kwanza Basin

As previously announced, KON-11 is considered a brownfield development and
includes the historically producing Tobias field, drilled, and developed by
Petrofina in the 1960s and 1970s, and inactive since the late 1990s.  The
Tobias field constituted 12 historic vertical wells, and Corcel and the
operator believe that revised interpretation of the existing structures along
with the application of modern drilling and completion technology, including
potentially horizontal drilling will lead to a higher Original Oil in Place
("OOIP) figure in the reactivated field being achieved.

The traditional Tobias field reservoir is in the Binga limestone, located at a
depth of approximately 700m along the crest of the structure, with 4-14%
primary rock porosity which is enhanced by a naturally fractured carbonate
system.  Historic peak production at Tobias was 17,500 bbls/d with 29 MMbbls
produced over the life of the field.

Corcel's estimated unproduced contingent oil resources are estimated at 65
MMbls with 11.7 MMbls net to CRCL, the field will qualify for marginal field
fiscal terms, as outlined by the Angolan government, resulting in advantageous
royalty, tax and depreciation regimes.

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)
 

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.

 

About Corcel Plc

 

Corcel Plc is an Angolan focused oil and gas company, with a range of
appraisal and exploration interests in the region. The Company's primary
assets are located in the Kwanza Basin, which is currently being reactivated
after several decades of underinvestment.

 

Corcel retains several additional mining interests, including exposure to
nickel, cobalt, rare earth elements and lithium.

 

Corcel Plc is quoted on the AIM market of the London Stock Exchange.

 

www.corcelplc.com (http://www.corcelplc.com)

 

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