TIDMCRCL
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
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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END
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