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The news gets worse. Now their partners at Mt Weld have pulled the plug on any further investment in the project. Never a good sign of what is there.
Mt. Weld Update
28 March 2024
Corcel plc, (London AIM: CRCL), the Angolan focused exploration and production company, announces an update to its Mt. Weld rare earth element project, located 1.5km west/north-west of Lynas Rare Earth Element's Mt. Weld rare earth oxide mine, near Laverton, Western Australia.
Corcel's partner, Riversgold Limited (ASX:RGL) has informed the Company of its withdrawal from the Mt. Weld earn-in agreement, as part of a much larger tenement rationalisation process undertaken by RGL.
This decision will leave the Company with an 80% interest in the project, with the balance of 20% being held by Extraction Srl, an entity in which Corcel's Executive Chairman, Antoine Karam, owns 45%.
With the current and future shareholdings now clarified, the Company is assessing its options and next steps regarding further development of the project.
Corcel Executive Chairman, Antoine Karam, commented: "We thank our partners at Riversgold for driving Mt. Weld forward over the past year, including management of the initial drilling campaign at the project. While it is clear Riversgold's significant project rationalisation effort moves them to focus on other avenues, primarily lithium, it leaves Corcel with ultimate control of the project's next steps."
https://www.londonstockexchange.com/news-article/CRCL/mt-weld-update/16400834
Well at least we now know why they didn't release the flow rates before the conference (as many on here were confidently predicting). They haven't got any flow rates to release (as yet anyway).
"From experience I would confidently say that taking a long time to flow test a well is a sign that they are having trouble getting it to flow" No sh*t.
*Thinking", "maybe* - Have you ever held shares in the company?
On thinking about it, maybe that was 5 times less.
From experience I would confidently say that taking a long time to flow test a well is a sign that they are having trouble getting it to flow. No news in this business is usually bad news. They have now bought themselves some time but there is still no guarantee that this will flow at all, let alone at the high figures to meet previous production levels.
TO-13 might flow but from memory that well historically flowed at about 7 times less than TO-14.
It has been 3 months now, so perhaps they thought they had to?
Thanks Breq,
Great insight and explanation.
It makes you wonder why they didnt release an update when they had tested both the top and bottom?
Seems odd to issue an update on an unfinished flow test.
I'm all for having an opinion Sniper and I have no problem with investors retaining a voice having sold. However, when that voice wants to become the loudest and that poster spends countless hours posting irrelevant drivel then it becomes a problem. There is no harm highlighting someone's position, just for clarity.
You wouldn’t bet your house on this share but it’s certainly not boring, my holding is negligible so I’m riding the rollercoaster it certainly makes for an interesting hobby.
Dan, that’s quite an odd thing to post.
People sell / buy / trim down positions all the time, anyone selling still has a voice, in the same way that buyers do too.
Because you think everyone should buy and be happy with the latest RNS, and not have a negative view, doesn’t discount their opinion. We all have one.
People can turn bearish on a stock / the leadership team if they feel lied to, it doesn’t mean they should remain silent or always mention the positives on a company. It’s an open discussion board.
IMO the news is not good and those who want to lead others down the same path are often to blame for people losing their shirts.
If the RNS was positive and clear yesterday, I doubt you’d have angry investors here
I do like watching those that have sold out, you see people for who they really are.
You lot make me laugh. Any way you can twist this around to find the positive. Talk about rose-tinted specs.
Personally I am quite happy to wait for further news from the operators. If they can get decent flow rates then it will be easy enough to buy in and if they can't, well I've got nothing to lose and I won't have to panic sell all over again.
There are a lot of very big sells going through as delayed trades - all in the millions - and a few buys going through but all in the low hundreds of thousands.
Mcfcnige,
Sometimes it’s fixable, all depends on the specific circumstances.
As Ed says, they have almost certainly been testing the lower levels first and as we know it was the top 8m which flowed at 12,000 BODs.
Hopefully the historic flowing levels are the low hanging fruit. I’d test them and pull back the well to say 2,000 BODs to limit watering out. At 2,000 BODs the well will produce cash flow of $3m a month.
Just my thoughts.
Just one question TK44:
Are you being serious or are you being sarcastic?
Breq,
Possibly. This well reached TD, whereas TO-4 only penetrated the top 8m of the Binga. Oil companies test from the bottom up so you could be correct in saying that they've been trying to get the deepest parts of the well to flow first and spent the last number of weeks looking for a solution to that.
Regards,
Ed.
Yeah. dropp on MEN and BYOT is understandable as they will be cancelled. but this news was just delay. Will go back where it was.
And look at BCE - Beacon Energy - more recently who claimed their drill was going to flow at 900bopd but they only managed 40bopd.; and look at Desire Petroleum in the Falklands who declared an oil find that turned into water a couple of days later.
Every dill is differrent.
Nige,
Bad timing for sure just before Easter break, but a lot of companies will release updates like this. They may need to do an acid squeeze or something similar on part of the well, but all we can do is guess at present. I'd assume they didn't want to take time to get this engineering work done or folks would have been shouting for an update if we hadn't got one by end of April etc, they do have to keep the market updated etc. More prospective zones in TO-14 yet to be tested, so its a wait and see. Hopefully we'll get more updates on the engineering work over the coming weeks.
You could be correct as these delays have put the timeline out now for sure and the company would be coming under more pressure to update. Maybe the could have held off a little longer, but perhaps that still wouldn't have made a difference. It may take weeks to sort out the issue they've encountered. I'm sure we'll hear in due course.
Regards,
Ed.
Look at JOG market update in Sept 2017, and then consequently update in following October. A lot argued back then how orchestrated the update manoeuvre was to let in the bigger party(ies). Price shot up over 400%!
Yeah, bouncing strong!!!
Let's believe that TO-14 is going to flow at 12,500bopd - that's 2,500bopd net to Corcel.
Or that is what we were led to believe anyway in the RNS dated 28th December 2023. Unfortunately it hasn't happened so far.
I think the best approach is to claim to not have noticed or read the RNS and to see the drop as an unexpected buying opportunity - and by the way, that is me being sarcastic.
Bouncing strong
Especially if tle loss is 50% or more.
You're here so I doubt that... and who's this we? You sold out.