REG - Corcel PLC - Brazil Collaboration Agreement

CorcelAnnouncement

10/07/2024 11:00

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RNS Number : 8773V  Corcel PLC  10 July 2024

Corcel PLC

("Corcel" or the "Company")

Brazil Collaboration Agreement

 

10 July 2024

 

 

Corcel Plc (London AIM: CRCL), the pan Angola-Brazil focused exploration and
production company, is pleased to announce that it has signed a Collaboration
Agreement (the "Agreement") with Conterp Serviços Técnicos Ltda ("Conterp"),
an energy services company operating onshore Brazil, under which the companies
will work together to identify, evaluate and acquire producing onshore oil and
gas fields in Brazil.

 

Under the Agreement, the Company and Conterp will collaborate to jointly
develop a pipeline of onshore opportunities in Brazil, where they will use
their respective resources to assess, rank and access with the intention to
acquire attractive producing assets. The partnership will combine Conterp's
local market knowledge and relationships, access to technology, services,
equipment and expertise of asset management of onshore Brazil oil and gas
fields with Corcel's subsurface capabilities, access to capital markets and
offtakers. The Parties have a particular interest at present in pursuing
projects focused on producing onshore oil and gas fields with significant
development and exploration upside in the Alagoas, Sergipe, Bahia, Rio Grande
do Norte, Rio de Janeiro, and Espirito Santo regions, where Conterp operates.

 

Conterp is an energy services company, with over 20 years of experience and
over 800 employees, providing Well Services, Drilling Contracting, Operation
and Maintenance, and Asset Integrity Management services. Its portfolio holds
a significant number of operational assets (equipment and technology) ranging
from several workover rigs, to well services and well intervention equipment.
The Company views Conterp as a strong go-to-market partner for onshore Brazil
oil and gas assets.

Corcel Interim CEO Scott Gilbert commented: "Our collaboration with Conterp
provides access to a pipeline of acquisition opportunities. Given the
well-understood geological landscape and mature nature of the market onshore
Brazil, our strength lies in our ability to execute 'above-the-ground.' This
is where our partnership with Conterp is crucial, providing Corcel with a
strong advantage."

 

Conterp CEO Oswaldo Souza commented: "We are looking forward to embarking on
this collaboration with Corcel. We are confident that our technical and
operational experience in the oil and gas sector onshore Brazil will
complement Corcel's, by providing Corcel with a strategic partner that can
mitigate execution risk and accelerate production in future assets they may
seek to acquire."

 

For further information, please contact:

 

Corcel Plc:

 

Scott Gilbert, Interim CEO

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

 

WH Ireland (NOMAD & Broker):

 

James Joyce / James Bavister /Andrew de Andrade

0207 220 1666
 
 

 

Vigo Communications (IR):

 

Patrick
d'Ancona
 

0207 3900
230

 

About Conterp

 

Conterp, based in Salvador, Brazil, is an energy services company founded in
2001 and that has grown rapidly since inception providing a wide service
offering to a diversified client base within the production segment of the oil
field services industry. Conterp's clients include small-cap, mid-cap and
large-cap E&P companies such as Petrobras, Carmo Energy, Braskem, Origem,
3R, Eneva and The Dow Chemical Company.

 

Conterp's current focus is to service producing oilfields where customers'
operations have tended to be more insulated from commodity price cycles
inherent in the oil & gas industry. It is now gearing for penetration of
renewable energy market services through existing client relationships and
transferable skills and equipment.

 

Conterp has a track record of delivering long-term projects with its
established client base and is well-positioned for supporting acquisition of
future opportunities from Petrobras' past and planned additional divestments
through to 2027.

 

Corcel's Interim CEO, Scott Gilbert, indirectly owns 12.7% of Conterp's share
capital.

 

About Corcel

 

In oil and gas, Corcel has a notable portfolio onshore Angola that includes
brownfield development opportunities and significant exploration upside. On
the brownfield development, focus has been on reactivation of the Tobias field
in block KON 11 with two wells drilled in 2H23 with oil shows. Additional work
in G&G and engineering is underway to review the results of the drilling
campaign and the well testing programs conducted through 1Q24.

 

The Company is also focused on the implementation of its exploration program
in both its operated asset, block KON 16 and its non-operated assets, namely
block KON 11 and block KON 12. On June 7(th), the Company announced that it
had received all relevant approvals to acquire new G&G data through an
Enhanced Full Tensor Gradiometry Survey (eFTG) to be conducted by the Metatek
Group during Q3 2024 aimed at delivering new geological insights into the
prospectivity of the Tobias and Galinda fields, other potential leads and
prospects, and provide insights to enable the reactivation of the
brownfields.

 

Corcel's portfolio consists of interests in three licences:

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

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

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

 

 

 

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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