(Alliance News) - Corcel PLC on Wednesday said it has signed a deal to acquire 90% interest in Atlas Petroleum Exploration Worldwide Ltd.
Corcel is a London-based mining and mineral resource development company with interests in flexible energy storage and production. It manages operations in Papua New Guinea, Canada, Australia, and the UK.
The firm said it will pay consideration of GBP800,000 via the issue of 200 million new shares at GBP0.004 per share, locked up for 18 months.
Simultaneous to the acquisitions, APEX shareholders will make a GBP282,741 investment in Corcel, alongside investors from Brazil and Argentina's oil and gas sectors.
Corcel said APEX holds working interests of between 20% and 35% in three onshore blocks in Angola, containing two historically producing oilfields - which have potential for redevelopment of 85 million barrels P50 gross contingent oil resource - as well as one exploration license.
The exploration license has prospective resources of 1.46 billion barrels of oil, Corcel said.
Chair James Parsons said: "I am delighted to announce this first acquisition in our oil and gas strategy, providing a strong initial platform on which to progress our pan-Angola/Brazil growth strategy. The metrics on this acquisition are compelling for Corcel shareholders and the window is now open for rapid further consolidation onshore Angola alongside new asset acquisitions in Brazil.
"The Kwanza basin has been producing for 35 years, is a well understood petroleum system and has both significant scale and upside. Corcel sees significant opportunities to increase the legacy operator estimated resources given the structural configuration of the basin and recent new structural mapping."
Corcel shares rose 2.1% to 0.32 pence each in London on Wednesday afternoon.
By Harvey Dorset, Alliance News reporter
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Corcel (CRCL)