REG - Corcel PLC - Successful result in the EI-1 well workover Brazil

CorcelAnnouncement

24/02/2025 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:20250224:nRSX1767Ya&default-theme=true

RNS Number : 1767Y  Corcel PLC  24 February 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")

 

Successful result in the EI-1 well workover, Brazil

 

24 February 2025

 

Corcel Plc (AIM:CRCL), the pan Angola-Brazil focused energy company, is
pleased to announce the successful completion and initial results of the EI-1
well workover as reported by the operator,  Petroborn Óleo e Gás S.A.
("Petroborn"), in the IRAI field, where the Company holds an Option to acquire
an initial 20% interest, as previously announced on 18(th) November 2024.

 

Highlights:

·    EI-1 well workover in the IRAI field, Brazil, confirms sustained gas
production at 20,000m³/day (120 BOEPD / 706 Mscf), aligning with historical
production rates

·    The well is set to be brought online within the next 7 days,
reinforcing Corcel's strategy of acquiring cash-generating assets

·    Corcel's first production milestone in Brazil (should it decide to
exercise the Option), just three months after securing the IRAI opportunity,
demonstrates the company's rapid execution capability and disciplined capital
strategy

·    With a Right-of-First-Refusal (ROFR) over 80% of the IRAI field and
100% of the adjacent TUC-T-172 block, Corcel has positioned itself to expand
its presence in a proven gas-producing region with low-cost, high-margin
assets

·  Video interview with Corcel's Chief Commercial and Strategy Officer,
Geraldine Geraldo: https://tinyurl.com/3jvfkysv (https://tinyurl.com/3jvfkysv)

 

The EI-1 well was re-entered for testing at the gas zone, where a gas
production rate of 20,000m(3)/day (120 BOEPD / 706 Mscf) was observed during
testing operations. As announced on 18(th) November 2024, the workover of the
EI-1 well, located onshore Brazil in the state of Bahia, is part of a two-well
workover program where the Company, through its wholly-owned subsidiary CRCL
Brazil Ltd., holds an option to acquire i) a 20% interest in the IRAI gas
field, ii) a Right-of-First Refusal ("ROFR") over the remaining 80%, and iii)
another ROFR for 100% of the adjacent TUC-T-172 exploration block ("IRAI
Opportunity"), also located in the state of Bahia, onshore Brazil.

 

Geraldine Geraldo, Corcel's Chief Commercial and Strategy Officer, commented:
"We announced the IRAI Opportunity in November last year to pave the way for
an accelerated journey in acquiring producing opportunities in Brazil - in 3
months, from signing to production, we have delivered the first step in that
journey, with the first well meeting expectations. This achievement highlights
our ability to execute with precision both commercially and operationally,
while strategically securing high-quality opportunities. Our focus now turns
to further evaluating the IRAI opportunity through the second workover well
and other ongoing studies. Should we decide to exercise the option following
the results of the next workover and a final investment decision, this will
mark a significant milestone for Corcel: revenue from gas sales. We thank our
operational partner, Petroborn, and we remain committed to leveraging this
successful strategy to build a robust oil and gas production base for the
company in Brazil, while derisking our exploration upside in Angola."

 

EI-1 Well Workover Results:

 

Petroborn has completed the initial workover activities at the EI-1 well, in
the IRAI field in Brazil. The EI-1 well was drilled in 1963 to a total depth
of 576m and was temporarily abandoned by the operator at the time. EI-1 was
then re-entered in 2019 and a gas bearing sandstone at 417m was tested and
brought online for 22 months between 2020 and 2022. After producing a total of
19.8MMm3 of gas (120,000 barrels of oil equivalent) the well was shut-in for
operational and commercial reasons.

 

The EI-1 well has now been re-entered again where the gas zone at 417m was
tested and completed for production. During the testing operations (2 separate
tests of 7 hours and 6.5 hours) a gas production rate of 20,000m(3)/day (120
BOEPD / 706 Mscf - at a stabilised rate) was reported by the operator. This
rate compares to the historical production performance of the well where EI-1
produced an average of 20,000 m(3)/day in the last 3 months of production
(March-May 2022) before it was shut-in.

 

The operator is now working on the above ground gas production facilities and
to connect the EI-1 well to the existing gas production infrastructure at
IRAI. It is expected that the well will be brought online within the next 7
days, immediately generating revenue to Petroborn, and subsequently to Corcel
should it exercise the Option.

 

IRAI Asset Overview:

 

The IRAI gas field is located in the Tucano Sul Basin, about 110km NW of
Salvador, Brazil. IRAI is particularly attractive due to the shallow nature of
the gas reservoirs, with producing gas zones ranging in depth from 220-825m
across the field area. This, combined with the relatively high gas production
rates seen in the field, with the EI-3 well peaking at >40,000m3/day (250
BOEPD) of gas, provides the Company with a unique opportunity to materially
increase production and revenue generation at low rates of expenditure. Gas
reservoirs at IRAI are of good quality, with an average of 13m of net pay and
23% porosity.

 

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 NOMAD &
Broker

020 3829 5000

 
 

Jonathan Wright / Rupert Holdsworth Hunt                   Auctus
Advisors  Joint Broker

07711 627449

 

Patrick d'Ancona
                       Vigo Communications IR

0207 3900 230
 

 

Qualified Persons Statement:

 

Richard Lane, a Geologist with over 16 years of relevant experience in the oil
and gas industry and member of The Geological Society of London, 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.

 

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 by acquiring 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 Operated - 55% working interest - 49.5% 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  UPDTJMBTMTJTTJA