Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
Recap on valuation as we have a few newbies posting and any potential investors looking to buy
Sale of assets
WWG $2.8m
Mambare $4.1m
Mt weld $1m (partial)
Total $7.9m
c£6.4m
Crcl mkt cap £6m
Angola
REM
Lithium
All in for free
Add in funding of £10m @ .80p, 100% premium now to current sp
Brazil onshore oil and gas assets underreview
Angola onshoreand offshore assets under review
Current Angola apraisal drilling
The first drill is an appraisal well, of which Corcel has 11.7mmbbls contingent resources
As a current valuation per bbl we are valued at just £0.51 per bbl
£6 mkt cap / 11.7mmbbls = £0.51 per bbl
3 different value creation events on an oil discovery
a) in the ground value $3 per bbl
11.7mmbbls x $3 = $35.1m mkt cap / £28m mkt cap
b) on discovery $6 per bbl
11.7mmbbls x $6 = $70.2m mkt cap / £56m mktcap
c) on successful flowtest $10 per bbl
11.7mmbbl x $10 = $117m mkt cap / £93m mkt cap
The current drill is a well into a proven oil field , the tobias oil field
current estimate is 65mmbbls of recoverable oil remains ,the current recovery factor used is 31%,so suggest the oil in place is around 200mmbbls
There has been 12wells drilled historically, the area of closure is mapped and the 4previous wells that failed were outside the closure
The current drill is drilling through the proven reservoir, which is upto 100m thick
Info on the below link
https://www.corcelplc.com/project/onshore-kwanza-basin/
Once confirmed and as per July presentation, drilling to continue with one or more wells , expectation is for horizontal drilling from this first vertical wellbore.
Horizontal drilling will access more of the reservoir , we know the reservoir is upto 100m thick but the area of closure has been mapped to 3400 acres , so if Google is correct this is an area of 3709m x 3709m
https://www.propertycalcs.com/area/acres/3400
Please review the following link ,item C , increase the length of payzone
https://geology.com/articles/horizontal-drilling/#b
This will ramp up production, multiple times that of vertical well produces
As per timeframes , first oil is a quick turnaround expected in 6- 9months from now
Once into production, we will be cash generating !
No more dilution to shareholders
from the current mkt cap £6m there is huge upside to the forecasted aggressive production numbers , the plan looks to quickly drain the reservoir by production from horizontal drilling...
Item B on the below link
https://geology.com/articles/horizontal-drilling/#b
buying now and holding for a few years ..
multiples in value
Then any other success in Angola especially from KON16 where our share is 300mmbbls ,although this is exploration there was 12m oil found in previous well, so not your wildcat licence area
Lots of upside from current £10m mkt cap
Https://www.londonstockexchange.com/news-article/CRCL/angola-update/16194576
Whilst we wait
Well worth doing some research into the geology for the deeper targets beneath the thick salt layer
The rift between the Santos and kwanza basins
the success the santos Basin has achieved drilling deeper below the salt
https://www.marinetechnologynews.com/blogs/angola-pre-salt-development-700377
The salt acts as a thick seal, with migration pathways into the uplift and oil is trapped beneath the thick salt
To date not many wells have penetrated the salt layer , they have targeted the shallow oil reservoirs
Huge upside potential for us on the salt leads
Recent articles refer to us testing a 2nd reservoir from the same drillpad
If that is correct they may go deeper and test beneath the salt layer where the greatest potential is for oil accumulation
Click on the link below
https://www.corcelplc.com/project/onshore-kwanza-basin/
If you look at the map of the blocks and look at Tobias oil field , where we are curently drilling
Anyone see what's just about showing underneath the oil field
"Salt lead"
Further reading , highlights the salt potential leads on KON11 & 12
https://africaoilgasreport.com/2021/04/geosciences/angolas-onshore-kwanza-basin-offers-an-underexplored-basin-with-a-world-class-petroleum-system/
https://geoexpro.com/seeking-operatorship-in-angola/
https://geoexpro.com/onshore-hydrocarbon-exploration-opportunities-in-angola/
Sonangol announced, for August, the start of drilling of TWO oil wells in Block Kon 11, of the Onshore Kwanza Basin, in assets with the potential to contribute to the growth of production operated by the company, raising it from 2.0 to ten percent of the total Angolan oil industry.
The president of the Executive Committee of the Exploration and Production Business Unit (UNEP) of Sonangol, Ricardo Van Deste, declared, quoted by the “Ngol” program, broadcast by the company on RNA, that Kon 11 was identified as the block with the greatest potential of reactivation.
Campo Tobias, where the Block is located, was discovered in 1961 with an initial volume of 94.3 million barrels, having operated until 1996, when it was abandoned with 28.95 million barrels produced, with a remainder of 65.35 million barrels.
At the peak of operations, Kon 11 had a production of 18,000 barrels per day, obtained from a total of eight wells, where “light oil is obtained, of very good quality and very well accepted by our refinery”, said Ricardo Van Of this, remembering that, “in the past, this field was one of those that supplied oil to the Luanda Refinery”.
drilling goals
The drilling aims to confirm the reservoir’s production potential in order to optimize the development plan with these results, although the company already sees Campo Tobias as an opportunity to accelerate the start of production.
According to Ricardo Van Deste, “UNEP has been carrying out studies for some years to assess the potential of its blocks operated in the onshore area of the Kwanza Basin”, with which it identified Kon 11 as “the asset with the greatest potential for reactivation of production”, something that can happen in the short term.
Block Kon 11 is the first to be drilled as part of these operations, with the ground preparation work being concluded, said Ricardo Van Deste, considering such operations as an important milestone for the Angolan oil industry, “because it marks the beginning of exploration and production activities in an area with great potential, but which has been without production since the 1990s”.
https://africantender.deals/sonangol-begins-drilling-to-reactivate-two-wells-in-angola/
Recap on valuation as we have a few newbies posting and any potential investors looking to buy
Sale of assets
WWG $2.8m
Mambare $4.1m
Mt weld $1m (partial)
Total $7.9m
c£6.4m
Crcl mkt cap £6m
Angola
REM
Lithium
All in for free
Add in funding of £10m @ .80p, 100% premium now to current sp
Brazil onshore oil and gas assets underreview
Angola onshoreand offshore assets under review
Current Angola apraisal drilling
The first drill is an appraisal well, of which Corcel has 11.7mmbbls contingent resources
As a current valuation per bbl we are valued at just £0.51 per bbl
£6 mkt cap / 11.7mmbbls = £0.51 per bbl
3 different value creation events on an oil discovery
a) in the ground value $3 per bbl
11.7mmbbls x $3 = $35.1m mkt cap / £28m mkt cap
b) on discovery $6 per bbl
11.7mmbbls x $6 = $70.2m mkt cap / £56m mktcap
c) on successful flowtest $10 per bbl
11.7mmbbl x $10 = $117m mkt cap / £93m mkt cap
The current drill is a well into a proven oil field , the tobias oil field
current estimate is 65mmbbls of recoverable oil remains ,the current recovery factor used is 31%,so suggest the oil in place is around 200mmbbls
There has been 12wells drilled historically, the area of closure is mapped and the 4previous wells that failed were outside the closure
The current drill is drilling through the proven reservoir, which is upto 100m thick
Info on the below link
https://www.corcelplc.com/project/onshore-kwanza-basin/
Once confirmed and as per July presentation, drilling to continue with one or more wells , expectation is for horizontal drilling from this first vertical wellbore.
Horizontal drilling will access more of the reservoir , we know the reservoir is upto 100m thick but the area of closure has been mapped to 3400 acres , so if Google is correct this is an area of 3709m x 3709m
https://www.propertycalcs.com/area/acres/3400
Please review the following link ,item C , increase the length of payzone
https://geology.com/articles/horizontal-drilling/#b
This will ramp up production, multiple times that of vertical well produces
As per timeframes , first oil is a quick turnaround expected in 6- 9months from now
Once into production, we will be cash generating !
No more dilution to shareholders
from the current mkt cap £6m there is huge upside to the forecasted aggressive production numbers , the plan looks to quickly drain the reservoir by production from horizontal drilling...
Item B on the below link
https://geology.com/articles/horizontal-drilling/#b
buying now and holding for a few years ..
multiples in value
Then any other success in Angola especially from KON16 where our share is 300mmbbls ,although this is exploration there was 12m oil found in previous well, so not your wildcat licence area
Current sale of assets covers mktcap
Lots of upside from current £6m mkt cap
No probs
Great interview with AK , clearly he's looking to get us into production ASAP and build up a strong portfolio in Angola
As my previous post e are getting in a ground zero
First sp catalyst due within the next few days
Exciting times
Yrabsmurruc
How long to drill to 700m on a dry hole basis onshore ?
Clearly not over 50days !
What could be happening out in the field ?
Wel weknow the objectives of the drill waste confirm oil in place, potentially to increase oil in place and to understand reservoir performance
Now we aren't talking about a small payzone ..
Up to 100m oil column
Testing will take sometime