Member Info for Edgein

Hige,

Yeah agreed. Its a well they've been careful with and the extent of the column with multiple intervals and shows throughout. Carbonates can be complicated to drill too due to the natural fractures. But you'll also notice something interesting too. Now that they have drilled and logged this well it took close to 60 days (6th September spud) and the next one is estimated to have 40-50 days drill time. The more wells a company drills into the same target the more they learn how to handle the reservoir and the faster and cheaper wells become.

Definitely lots of news to come. Geological and geophysical analysis of TO-13 while drilling TO-14 so we'll get more updates there and also newsflow from TO-14 spudding etc. Updates on the progress towards the EPS. Plus we may get some more of these other acquisitions and updates on the sale of the mining assets and perhaps results from Mt weld too. So yeah lots of news to look forward to over the coming months.

Regards,

Ed.

Hi Nige,

No worries. Well you need to remember that oil companies always drill beyond the reservoir. While you might get some miners that drill to a certain depth and have mineralization beyond the end of a set depth hole this never happens with oil and gas. They never stop mid oil column unless they have a technical reason for doing so as they want to know the full extent of the oil column. Then the second reason, 2D seismic isn't an exact tool, its a reflection of what's down there. With modern 2D and the previous well info they could reasonable estimate the depth but sometimes reservoirs come in deeper or shallower than expected, its not that uncommon.

This was the Binga they encountered, so primary target, so not a deeper or additional target according to the RNS, Its just turned out to be a little deeper and more extensive then expected and according to today's release confirmed significant hydrocarbons and straight onto TO-14.

Regards,

Ed.

P.s.

As for leaks etc. 7am RNS releases need to be lodged the day before so no leaks from either Sonangol or Corcel. Did some act on the information lodged and checked by Nomad etc. Not for me to speculate on because we've had other large traders this last month and we all knew result was getting close.

Hi Nige,

Same as usual, should be a £30-50m cap at present. As expected the Tobias field is delivering, perhaps a bit better than expected too. This is a large field that has only 7 production wells in it, it covers 3400 acres or over 13sq kms so as per prognoses lots of oil remaining down there. 11.7mmbbls net at present (prior to today's result) is a great starting position. With more wells drilled and the EPS we will have a better idea of future scale, today's news will sink in to the market and so will the next well etc. I'd have to review my target though as they acquire more blocks. If the market starts to factor in the 300mmbbls net prospective upside cap could go much higher.

Regards,

Ed.

Nonsense. Before drilling this well Tobias had circa 65mmbbls of gross contingent, 11.7mmbbls net to Crcl. The 120m oil column has implications for oil in place and contingent. Where you get 11mmbbls target from I've no idea as the small Galinda field is also bigger than that. Tobias and Glainda together are around 16mmbbls net contingent to CRCL.

Regards,

Ed.

Good morning Nige,

I'm super today thanks, hope you've been enjoying today's RNS too. I bet Luke is having a good day too with the amount he holds!

Yeah previously suggested 100m oil column through old logs pre 1980's. Now modern well has identified 120m gross column with multiple intervals that compare with the previous producing wells. Straight onto next well, always a good sign. I hope you were able to accumulate as many as you could in the 0.2s.

Yeah very true lots more news to come from TO-14 over the next 40-50 days, Sonangol hoping to spud by middle of this month and then result around Christmas or new year. Plenty of info to get out regarding the early production system I'd imagine too. Cap is tiny, upside is huge so I bet you're also expecting a good run! Then we have further Angolan consolidation and Brazilian acquisitions to look forward to at some point too. But what a great start to the journey, much much more to come from the looks of it.

Regards,

Ed.

Torino,

With the announced sales of the mining asset and the recent £10m funding package from Extraction srl we're funded way more than one more well.

Regards,

Ed.

Previosuly thought to be 100m we now have 120m gross oil column in the Binga at this location with mutliple potential pay zones. So 393ft (wow) of oil in the Binga and shows throughout.

" Full Binga reservoir section (120m) encountered in the well as prognosed with several potentially productive zones seen in multiple intervals"

"Results confirm the ability to reactivate production through an early production system ("EPS") and imply significant hydrocarbon potential remaining"

"with oil shows found throughout the Binga reservoir in alignment with the distribution seen in historic production wells in the Tobias field, confirming the ability to reactivate production in the field"

So its little wonder they're straight on for back to back drilling, they can get in a workover rig once the development drilling is finished. So we should be looking at the results of TO-14 around Christmas and new year. With an increase in oil column from the modern logs its quite possible they'll need to rework the oil in place and contingent resources.

As Dicko has pointed out the salt layers are very good at forming top seals, oil is commonly associate with salt domes, also these tend to overlie syn-rift deposition so large potential volumes of source too. Its why KON-15 looks compelling, near shore, both salt domes and salt diapirs present.

Well done to fellow holders Tobias is game on and potentially bigger than expected given this result.

Regards,

Ed.

Mike,

Well done for finding that one great link, lots of detail in that one, I downloaded a copy. I do like the look of KON-13 and KON-15.

One that the new guys might find interesting is this link I posted previously:

https://geoexpro.com/onshore-hydrocarbon-exploration-opportunities-in-angola/

Regards,

Ed.

Hi Nige,

With previous funding and the $1.6m interest free loan from the sale of Mambare they're in a good position. If they require a draw down of the 0.8p notes they would have to inform the market, but just not give specifics of what its for. They could say its for operational purposes/working capital rather than say its for really large sales tanks. :)

Regards,

Ed.

Good morning Nige,

Well CRCL would have to meet any cash calls that Sonangol make. They would be kept up to speed on what its for. The company could say something along the likes of draw down for working capital etc. But they still couldn't release information about T-13 without Sonangol approval, but they certainly still have to meet ongoing costs. Not something to be concerned about though as the company is well funded from the interest free loan and Mr Karam's 0.8p financing. If there are more cash calls then it shows there's something going on!

Regards,

Ed.

Hi Nige,

Smkr pretty much covered what the plan is from those recent news releases. There could be all sorts of scenarios going on at the moment. T-13 is going to be a proof of concept that there is at least 65mmbbls recoverable and based on that further drilling. Yes I would imagine that means back to back wells to have production early next year, separator, storage tanks and flow lines all would need ordered based on how productive the wells may be. But from the presentation now to early Q1 is planned for drilling.

You can have a good idea how successful a well is from logging and coring, CHAR for example didn't flow test their wells offshore Morocco but know the pressure and gas saturation levels etc. Wells can be flow tested at a later time using a workover rig while the drill rig gets on with drilling and completing wells. So there are all sorts of possible scenarios that might happen. Hopefully the company will update us soon on what is happening though. Some will be here for multiple wells and multiple acquisitions so no rush.

Regards,

Ed.

Yrab,

For even more balance, Sonangol are a very large professional company and like other large professional oil companies will be able to maintain tight hole status if they chose to do so. So in theory they could drill all necessary wells and remain tight hole on all until they feel like it. CRCL cannot release any information until Sonangol allows them to do so, sensitive or otherwise.

Regards,

Ed.

Dicko,

Agreed. The large field covers 3400 acres and had only 7 vertical production wells and one injector for the entire area and as you mention a significant oil column. Sonangol did pre-drill studies and came to the conclusion that there's around 65mmbbls still in this large field. We'll know much on the results of this initial well, the drainage area of a vertical well will be a fraction of a horizontal. We'll know in due course if Sonangol were accurate in their pre-drill prediction, there is significant well spacing between the previous production wells from the CRCL presentation, clear infill potential.

Regards,

Ed.

Good morning Nige,

It may well do. We've now got some really interesting and high potential assets in Angola already. So if its more of the same, i.e blocks with contingent or redevelopment potential, then no, I would imagine with the current assets then an RTO and admission document wouldn't be necessary, we may soon have a producing asset, fingers crossed. However if they go down the route of the likes of AET or SRSP where Trafigura are helping to fund large acquisitions offshore then yes RTO and suspension likely. Check out the past 12 months news from AET as an example of what can happen with a material acquisition offshore Angola. SRSP are a slightly different case as they're currently delisted, but same principal as their acquired blocks/reserves/production is/are even larger than those of AET. But the end result is likely to be mid-cap. So the fact that Mr Karam and team are looking offshore as well as partnering Sonangol onshore is very exciting. Those assets being acquired by AET and SRSP are being sold by Sonangol.

Regards,

Ed.

Dicko,

Great find, that highlights the potential of this one. Looking for more blocks onshore and offshore including producing assets. Good stuff. Sale of those mining assets going to be put to good use from the sounds of it.

Regards,

Ed.

Hi Nige,

I'm good, hope you are too!

Well costs will be ongoing, day rates on rigs and crew. From the presentation you referred to, looked like rig booked through to next year. Sonangol are well funded too! :) They're doing something for sure otherwise we would have heard. We'll no doubt get an update soon.

Regards,

Ed.

Hi Nige,

I would assume that its development drilling on Tobias rather than an additional well elsewhere. Company suggested results in October so drilling through to warly Q1 suggests at least one more well before first production scheduled for Q2 next year. Yes the company has stated that the further drilling of one or more wells would be dependent on the outcome of the initial well. Clearly the drilling on Kon-12 block next year is entirely independent of that. Sonangol must have more than one rig slot available.

Regards,

Ed.

Ash,

It might be also something to do with the fact that our neighbours are drilling prolific oil producing wells. Industry leaders aren't interested in old fields in Michigan. However, COPL PRB JV negotiations 13 months and counting.

Regards,

Ed.

FF,

What is the relevance of an old field in the Michigan Basin to an undeveloped discovery in the Powder River Basin? Why on earth are you not using examples from the PRB, its not as if there's a shortage of those?

Regards,

Ed.

Careful,

The JV negotiations are being run by Art and COPL America the outcome/success or failure of the JV will be down to them and them alone, Anavio like you say have one board member of the parent company and negligible shareholder vote at present (no TR-1) so little to no influence on the JV discussions or outcome.

Regards,

Ed.