REG - Corcel PLC - Corcel Consolidates KON16 Interest & Secures $2.5M

CorcelAnnouncement

14/05/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250514:nRSN6100Ia&default-theme=true

RNS Number : 6100I  Corcel PLC  14 May 2025

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.

 

Corcel PLC

("Corcel" or the "Company")

 

Corcel Consolidates Block KON-16 Interest and Secures $2.5M through Strategic
Alliance with Sintana Energy Inc

 

 

14 May 2025

 

Corcel Plc (AIM:CRCL), the pan Angola-Brazil focused energy company is very
pleased to announce that, through its subsidiary Atlas Petroleum Exploration
Worldwide Ltd ("APEX"), it has conditionally acquired an additional 30% gross
interest in its operated Block KON-16 in the Kwanza Basin, onshore Angola,
from a joint venture partner of the block, subject to Governmental approval.
Concurrently, Corcel is also delighted to announce the signing of a binding
heads of terms for a strategic alliance with Sintana Energy Inc (SEI: TSX-V)
("Sintana"), a transaction that secures $2,500,000 in exchange for a 5% net
interest in Block KON-16. The result of these two transactions, upon
completion, will increase Corcel's net interest in Block KON-16 from 49.5% to
71.5%.

 

Highlights:

·    APEX acquires an additional 30% gross (27% net to CRCL) interest in
Block KON-16, consolidating an 85% controlling interest in its high-impact,
high-potential operated block;

·    APEX has entered into a binding heads of agreement to sell a 5% net
interest in Block KON-16 to Sintana Energy Inc for a cash consideration of
$2,500,000, which provides an indicative gross value of $50,000,000 for the
entirety of KON-16, pre-seismic;

·    Corcel enters a strategic alliance with Sintana Energy Inc through a
Joint Study and Bid Agreement ("JSBA"), which targets further opportunities in
onshore and offshore Angola; and

·    Transaction proceeds enable Corcel to accelerate and fund its 2025
seismic program in KON-16 leading to drilling an initial exploration well in
KON-16 in 2026.

 

Scott Gilbert, Chief Executive Officer at Corcel commented: "We are extremely
pleased to have executed two value-accretive transactions in rapid succession.
Upon completion, our acquisition of an additional working interest and the
strategic alliance with Sintana are clear validations of Corcel's first-mover
advantage in the onshore Kwanza Basin. Starting with a 35% gross interest in
KON-16, we increased our stake to 55% in September 2024 at no cost to Corcel.
Today, with a modest outlay, we have secured a controlling interest in the
block. We have firmly consolidated, monetised, and funded forward - all while
preserving substantial long-term upside.

 

As we continue to build Corcel, we do so with a stronger balance sheet, a
clear strategic vision, and a growing track record of delivering non-dilutive,
value-generative transactions. Our focus now shifts to operational delivery
and continuing to scale with discipline.  I would like to thank Sintana for
sharing our vision, the Corcel team for their outstanding execution, ANPG for
their continued support, and, of course, our shareholders for their trust and
patience as we position Corcel for sustained growth and regional leadership."

 

Robert Bose, Chief Executive Officer at Sintana commented: "Our emerging
partnership with Corcel is emblematic of our strategy to partner with
best-in-class entrepreneurs and deploy high impact capital that provides
exposure to significant resource opportunities.  Our partnership with Corcel
provides us a superior platform for our entry to Angola and we are
particularly excited about the potential of KON-16.  We look forward to much
success together."

 

Transaction Details:

 

Acquisition of a 30% gross interest in KON-16:

Through APEX, its 90% owned subsidiary, Corcel has acquired a 30% gross (27%
net to CRCL) interest in its operated Block KON-16 from Intank Global DMCC
("Intank"). The acquisition of this incremental interest, subject to the
requisite government approvals, shall complete with a cash payment to Intank
of $500,000. As part of the Sale and Purchase Agreement, signed between Corcel
and Intank, Intank shall receive a future 5% Overriding Royalty Interest
("ORRI") limited to the first development area of KON-16 in the event of a
commercial discovery. The attributable losses for the year ended 31 December
2024 for the 27% net interest acquired in KON-16 are £81,271.

 

Divestment of a 5% net interest in KON-16:

Corcel has subsequently agreed a binding heads of terms to divest a 5% net
interest in KON-16 to Sintana by selling a 5.88% equity stake in a newly
formed Special Purpose Vehicle ("SPV") that will hold the consolidated 85%
interest in KON-16.  Following completion of this transaction, Corcel's net
interest in KON-16 will be 71.5%. The cash consideration for the acquisition
of the net 5% interest in KON-16 is $2,500,000 and as part of the agreement,
Sintana will receive a future 2.5% Net Profit Interest ("NPI") on Corcel's
interest in KON-16 up to $50,000,000, after which the NPI reduces to 1.5%, in
the event of a commercial discovery. The attributable losses for the year
ended 31 December 2024 for the 5% net interest acquired in KON-16 are
£15,050.  A $500,000 down payment of consideration is receivable upon
entering into the heads of terms, with a further $2,000,000 payable upon
completion.

 

Joint Study and Bid Agreement:

Corcel and Sintana have also executed a Joint Study and Bid Agreement
establishing an alliance to evaluate and pursue oil and gas exploration and
production opportunities in Angola both onshore and offshore.  Under the
agreement, both parties commit to jointly collaborate on evaluating
opportunities. Participation in any specific opportunity is voluntary and
subject to unanimous agreement on commercial and other bid terms.

 

Strategic Rationale:

The transactions with Intank and with Sintana represent significant milestones
in Corcel's efforts to unlock value from its upstream oil and gas portfolio in
Angola's Kwanza Basin. The acquisition of an additional 30% gross interest and
the subsequent sale of a net 5% participating interest in KON-16 for a cash
consideration of $2.5 million provides clear market validation of the asset's
potential and monetises part of Corcel's position at a relatively early stage
of the project lifecycle.

 

Key strategic benefits of the Sintana transaction include:

 

·      Early-Stage Value Realisation: The deal crystallises upfront cash
returns on Corcel's investment in KON-16 and provides tangible evidence of
third-party valuation support at a material premium to historic entry costs

·      Non-Dilutive Capital Inflow: The proceeds strengthen Corcel's
balance sheet without dilution to shareholders, enhancing the Company's
ability to progress its broader portfolio and strategic objectives

·      Partnership with an Industry-Aligned Counterparty: Sintana brings
both capital and strategic alignment, offering a collaborative pathway to
de-risk and advance the KON-16 block through exploration drilling planned in
2026

·      Preserved Control and Future Upside: Corcel retains a significant
majority interest and strategic control over the asset, while Sintana's
acquisition is structured to support governance efficiency and future joint
liquidity considerations

·      Attractive Long-Term Profit Participation: The Net Profit
Interest structure allows Sintana to benefit from long-term cash flows,
aligning incentives without impacting Corcel's near-term operational strategy
or asset development plans.

 

Overall, this transaction strengthens Corcel's position as a nimble and
value-focused energy company in sub-Saharan Africa, demonstrating disciplined
portfolio management and a clear path to monetisation, while retaining
significant upside exposure in a high-potential asset.

 

Next Steps:

The Company will update the market upon the completion of the acquisition form
Intank, which remains subject to Angolan Government approval, and on the
completion of the sale to Sintana, that remains subject to a sale and purchase
agreement. On completion and approval of the Environmental Impact Assessment
on KON-16 (announced 30 April 2025), the Company will then be able to move
forward with seismic acquisition operations, which will ultimately lead to the
drilling of the first new well on the block since the 1960's. At present, an
acquisition program of 300-line km of 2D seismic is planned over KON-16 to
better image targets in both the shallow post-salt and the deeper pre-salt
levels. The Company is also currently reviewing and interpreting recently
received reprocessed 2D seismic and data from the 2024 acquisition of high
resolution eFTG data over KON-16, which will result later this year in an
independent resource report on the asset to quantify volumetrics.

 

About KON-16:

Corcel holds an operated and controlling interest in KON-16, which is a large
(1000 sq. km) block in the onshore Kwanza Basin. KON-16 has benefited from
high quality regional scale modern 2D seismic acquisition in 2010-2012, which
identified significant post and pre-salt prospectivity that was previously not
imaged. Despite the large scale of the KON-16 area, only 1 historic well has
been drilled inside the block (Tuenza #1, in 1960) and therefore significant
potential is believed to remain. Prospectivity ranges from shallow oil-prone
targets analogous to the nearby Tobias and Galinda fields, to the deeper
pre-salt play, which is analogous to the deep-water Kwanza Basin discoveries
(TotalEnergies Kaminho Project).

 

For further information, please contact:

 

Scott
Gilbert

Corcel Plc, CEO & Director

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

 

James Joyce / James Bavister / Andrew de Andrade

Zeus Capital Ltd, NOMAD & Broker

020 3829 5000

 
 

Jonathan Wright / Rupert Holdsworth
Hunt

Auctus Advisors LLP , Joint Broker

07711 627449

 

Patrick d'Ancona
 

Vigo Consulting Limited, IR

0207 3900 230
 

 

About Corcel:

Corcel has a notable oil and gas portfolio in onshore Angola that includes
brownfield redevelopment opportunities and significant exploration upside.
Corcel marked a new country entry into Brazil through the option to acquire
rights to producing gas and exploration assets, further diversifying its
portfolio and enhancing its growth potential.

 

Corcel's Angola portfolio consists of interests in three licenses:

 

·      KON - 16 upon completion: operated - 80% working interest - 71.5%
net to CRCL

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

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

 

Corcel's Brazil portfolio consists of the option to acquire:

 

·      20% interest in the IRAI gas field

·      Right-of-first refusal ("ROFR") over the remaining 80% in the
IRAI field

·      ROFR for 100% of the adjacent TUC-T-172 exploration block,
located in the state of Bahia, onshore Brazil

 

Corcel's Battery Metals portfolio consists of an 80% working interest in the
Mt Weld Rare Earth Elements project in Western Australia.

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDAIMATMTIBMBA