RE: Opinion8 Oct 2023 09:10
Joe that decision is up to you,but if I held 5m at 2.1p average, I would average down based on recent events and future plans
We are on the cusp of a re rate ,
drilling our first well in Angola,results due in October .
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 £0.64 per bbl
£7.5m mkt cap / 11.7mmbbls = £0.64 per bbl
As my previous post, 3 different value creation events on an oil discovery
a) in the ground value $3 per bbl
b) on discovery $6 per bbl
c) on successful flowtest $10 per bbl
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 , wekniw 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
Asper 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 £7.5m 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 to your wildcat licence area
On top of Angola we also await news on Brazil, where multiple opportunities have been under review , expected to be oil and gas onshore from historic production fields to quickly drill and get back into production
We also wait news on selling off Mambare should add a few million overtime and prob less of a side show now REM & Lithium
The future looks exciting
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