REG - Corcel PLC - Oil Well Tobias-14 Drilling Results

CorcelAnnouncement

28/12/2023 07:00

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RNS Number : 9824X  Corcel PLC  28 December 2023

Corcel PLC

("Corcel" or the "Company")

 

Oil Well Tobias-14 Drilling Results

Block KON-11 - Angola

 

28 December 2023

 

Further to the announcement of 03 November 2023, Corcel Plc (London AIM:
CRCL) is pleased to provide an update on the drilling results of the Tobias-14
("TO-14") well in the onshore Block KON-11, in Angola where it has a 20%
working interest (18% net). The Operator is Sonangol, one of the largest
national hydrocarbon producers in Angola.

Highlights:

o TO-14 well - located at the top of an anticlinal structure and an offset
well from the largest historic producer in the field, has reached planned
target depth of 781m

 

o Full Binga reservoir section (~80m) encountered in the well with identical
zones encountered as in previous TO-13 well and oil shows throughout

 

o The Operator and CRCL believe the results confirm the ability to reactivate
production through an early production system ("EPS") and imply significant
hydrocarbon potential remaining

 

o Well clean-up and flow testing now begins on TO-14

Antoine Karam, Executive Chairman of Corcel, commented: "The encouraging
results of the TO-14 well constitute a significant milestone toward
development of an EPS and providing line of sight to near-term revenue
generation for Corcel.

At a macro level, we've confirmed that the same formations are contiguous
between both wells, and data indicate that these zones contain movable oil
throughout the reservoir.  Given the historically wide well spacing of the
field, there appears to remain substantial areas both undrained and now
potentially re-charged since the original field was shuttered.

The next steps will focus on the testing of the TO-14 well so we can determine
formation pressures and ultimately flowrates, and we look forward to further
announcements as Sonangol, the operator, moves to well testing."

Tobias-14 Initial Results

The TO-14 well penetrated the entire Binga reservoir section (~80m column)
with potential pay zones seen in multiple intervals. TO-14, with a total depth
of 781m, was drilled in close proximity to TO-4 as an offset well from the
best historic producer in the original Tobias field; a well which produced at
its historic peak 12,580 bbls/d despite only penetrating the first 8m of the
reservoir.

The location of the well is at the top of the field's anticlinal structure,
set over the larger of the two compartments that constitute the reservoir.
 

TO-14 drilling encountered high fractured Oolitic Limestones in the reservoir
with good porosity values.  Initial pressure readings support Corcel's
predrill thesis that the reservoir has returned to its original pressure
levels through active recharge of the system.

The TO-14 well found no presence of water during drilling, despite the fact
that the offset TO-4 well had been reported to have watered out by the end of
its production life, further indicating that the field has fully
re-equilibrated.

Overall, the drilling results for the TO-14 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 both moveable
fluids and the ability to reactivate production in the field.

Therefore, the consortium is proceeding to testing of the TO-14 and then the
TO-13 wells, with the objective of flowing the wells and then moving on to the
next phase focused on designing the early production system.

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 a revised interpretation of the existing structures
along with the application of modern drilling and completion technology,
including potentially adding sidetracks or horizontal drilling to the Field
Development Plan ("FDP") will lead to a higher Original Oil in Place ("OOIP")
figure recognized in the reactivated field and subsequently more producible
field resource potential.

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 an extensive, 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 prospective oil resources are 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
 

 

 

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