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 18th 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
The EI-1 well was re-entered for testing at the
gas zone, where a gas production rate of 20,000m3/day
(120 BOEPD / 706 Mscf) was observed during testing operations. As
announced on 18th 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 20,000m3/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 m3/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
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.
