Member Info for Edgein

Stas20,

What huge debt was that which I3E took on? Both acquisitions by them were with equity and not debt. Their main acquisition for the Cenovus assets was a £40m equity placing.

Regards,

Ed.

Tiburn,

Spot on. The make whole amount is also something to look out for too when they're far advanced in talks with an industry leader. Its interesting too that the 2P on CCU is from the Frontier 2. We don't yet have reserves for Frontier 1 or BFFDU and they could come in think and fast after a JV. But certainly the rising production from BFU will make those bonds much easier to settle with cash and makes the possible buyout from the hedge too (as would a potential lump sum from an industry leader).

Regards,

Ed.

Nige,

Absolutely, we might get another couple of $ mill in from selling Mambare, its certainly on the chopping block at the moment. That money is likely to be put to good use.

Regards,

Ed.

Pedrobull,

That's fine when the share price is over 0.8p (which most here expect). But the current way of looking at it is, why would they convert at 0.8p when they're 0.5p to sell at the moment. They would be better to take cash and buy at 0.55p :). But as you suggest the share price is likely to be well above 0.8p during that 36 month period. However Mr Karam is a major holder in Extraction Erl so will have a say on whether to take cash or convert. Placing shares is only really dilutive when they don't increase shareholder value, as this possible £10m is to be used in Angola and Brazil I see it as being materially accretive if it brings us to first production from Tobias. They do need the money at the moment as they'll have to fund these one or more wells and related infrastructure some how, the way they're chosen is at a large premium to the current share price. I currently hold millions of these in the 0.2s so that may sway my opinion somewhat. :)

Regards,

Ed.

Pedrobull,

You are assuming that all of these loan notes will be converted at a premium which they may not be:

"The notes will attract an interest rate of 12% per annum, accruing daily. Any drawn down interest and principal outstanding after 36 months is to be repaid to the Lender in either cash or shares at the discretion of the Lender."

We'll see. But Mr Karam won't want to dilute himself too much as he holds around 10% of the shares. If we do get more shares as a result of the convertible notes its certainly accretive it if means that they can develop Tobias at a large premium to the current share price. Any shares that are converted at 0.8p will be looking for a profit. This is a very good deal compared to the majority of AIM funding.

As Mr Karam put it:

"This funding, offered by Extraction Srl and approved by the Corcel Board, will enable the Company to more rapidly drive value creation for shareholders and, equally importantly, is demonstrative of the changes occurring in the business both operationally in Angola and financially in the nature of the funding being utilised. With this instrument in place, the Company now has a cost-effective long-term facility it can access without having to consider more dilutive and expensive sources of capital on offer. With this facility now available to help accelerate our activities, we now await initial results from the drilling of our first oil well in the Kwanza Basin, Angola ."

Regards,

Ed.

Dicko,

We have still to see our first Brazilian acquisition and things are moving at a fast pace in Angola so far. We also know that the company wants to consolidate in Angola too. If we establish a production and cash flow base in Brazil and Angola and given Mr Karam's financial contacts who know where it will end up. Could be a string of acquisitions and wells to come, both of those countries are very keen to up their onshore oil and gas production.

Regards,

Ed.

Nige,

£100m, give it time! :) Exciting times for sure, we could have back to back wells in Angola between now and Q1 24 and a Brazilian acquisition to squeeze in somewhere too and to ice that cake, well funded too.

Regards,

Ed.

Sienna,

Zephyr are further advanced at the moment. I looked at them briefly last week, From memory its something like 3mmbbls of reserves but 30mmbbls of contingent resources. Decent prospective from them too. They're currently on about 1400bopd net. So they're not big, they're no I3E put it that way. We could catch and perhaps pass them on reserves pretty quick (fingers crossed), perhaps on production too depending on timing of the future wells. Reserves are worth a lot more than contingent resources so it all depends on how quickly Sonangol move after T-13, the company has mentioned one or more wells, we should see a more detailed forward plan soon. If they're planning on being in production in Q1 next year those further wells should come soon, fingers crossed. Also they are based in USA rather than Africa so a different investment risk profile to CRCL.

We do currently have the assets for a significant cap. Today's funding is a major step forward as we've got a 18% wi in these wells which in turn should lead to potentially material production (the field did previously peak at 17500bopd producing 30mmbbls, there's apparently another 65mmbbls still down there). So Tobias and Galinda could get us to pretty healthy production levels at a time where the oil price is steadily increasing. The company could become self funding pretty quickly. Then the big exploration targets come into play.

Regards,

Ed.

That should have read Anglo African oil and gas.

Regards,

Ed.

Hi Nige,

Now that we are funded for Angola we;re already well ahead of many of the small cap AIM players, We'll have a better idea when we see the results of their first well in Angola, but as F1D said, £15m or even £20m wouldn't look out of place here. We could have a full swing material field development ongoing in the very near term depending on the results of T-13. If T-13 comes in as planned £20-30m wouldn't look out of place here now that we're funded. That funding might also get us our first production in Brazil, so thing may move swiftly. I'd expect us to compete with the likes of Zephyr Energy in due course (£56m approx). But lets see we await the imminent results of T-13 and our first Brazilian acquisition and plenty of room to bag yet. I still intend to hold for the next 3-5 years as this company is going places and I've seen what Tullow and Africa Oil and Gas did previously (both small caps to big caps from African oil discoveries).

Regards,

Ed.

Shouston,

It sure is a perfect time to be increasing production and unhedged. Be very intersting to see where production is from Feb 24 onward. Pressure in the BFU should be going great guns by then and flowing back down that fit for purpose GGS. Some did very accurately predict this year end oil supply crunch. $100/bbl+ looks highly likely in the coming weeks.

Regards,

Ed.

DC,

Quite likely given the current oil price, its a great time to become an oil producer onshore Angola. Lets hope we see some very good flow rates in the next couple of weeks. This field has been highly productive in the past and now we're funded for multiple wells which answers that looming question. Now when Mambare sells it'll just be spare cash, put to good use of course!

What a turnaround since Mr Karam came onboard.

Regards,

Ed.

Torino,

It sure does, funded to to the tune of up to £10m at an almost 80% premium to the share price and will be used for Angola and Brazil. Doesn't have to be repaid for 3 years and may do so from cash at the time, done this way to minimize dilution to shareholders! Many little companies heavily dilute or struggle to get funds at all, thanks to our new Chairman and his company we get funded at a large premium and potentially pay it back int the future from Angolan and Brazilian cash flow. Superb deal, roll on the results of the first well. I see we have a January tranche which could be used for either second well in Angola or surface infrastructure if needed.

Regards,

Ed.

Good links guys! Good to see the company very active on the social media side of things, but more importantly attending that conference in Angola. Best way for Mr Karam to consolidate more Angolan assets is on the ground in country, that conference will allow him to meet the people he needs to meet. Awesome stuff.

Regards,

Ed.

Luke,

Thanks for posting that. Good to see that Align have a 2p target as soon as Q1 next year.

Regards,

Ed.

Hi Nige,

You're welcome, yeah looks like a great move to get Mr Karam in and get this momentum behind Angola. Flying start compared to those mining assets. Shouldn't be long before we have some more news, yeah that forward plan will make for interesting reading.

Regards,

Ed.

Confounded,

The companies still believe there is 60mmbbls approximately down there to get our hands on, so even if its not in contact with a source its still down there according to Sonangol's interpretation of the field. We know what the field peaked at from those 7 producers and 1 injector so they were highly productive wells that recovered 30mmbbls approx from just 700-800m. Since they think there is another 60mmbbls to get out then I reckon we're gonna see some more good wells yet! Especially new horizontal wells, they could potentially make a significant difference, I'd still be expecting pretty good reservoir pressures down there to get that predicted level of contingent. My guess currently is that the current well will come up with a decent oil column, good pressure and good productivity, but lets see. Lets see what the upcoming RNS will reveal.

Regards,

Ed.

Hi Confounded,

Yes I agree on the strategy end of it too. It was very convenient that Mr Karam came in for 20% of Mt Weld with the timing needed to pay the signing bonus for Angola. Yeah I agree that the strategy is being lined up to chop the rest of the mining assets to make way for Angola and Brazil and a streamlined focused oil and gas producers. Happy days.

Regards,

Ed.

Confounded,

That's a possibility. It depends on the source and migration etc. The field may have been faulted from the source before it was discovered therefore no longer being charged, it may still be connected with migration pathways to the source rock. They'll know better when they get down there. But it could effectively be like a 30 year pressure build up test. They'll know how pressured it is when they get down to the Binga formation, and fingers crossed a lot of untapped oil pay. This is a big field, there's only been 7 producers on it and they'll have limited drainage areas as vertical wells, especially those with the 4% porosity, it is highly fractured though. I'm expecting there to be still large areas of unswept oil, we'll find out soon enough.

Regards,

Ed.

Nige,

True. There were more seismic lines shot around 2010, so more work has been done on it since Petrofina had their hands on the field. Yes I agree that this location will have been hand picked by Sonangol, they also work with the majors offshore Kwanza basin so they'll be familiar with the geology, better than many.

Definitely very exciting for sure as its not just the two field redevelopments on these licences its also the expo upside of these relatively unexplored blocks. So our £6m market cap at the moment has plenty of room to increase. Look at the size of our contingent compared to the likes of AXL or BCE etc and see where they are capped. I expect Sonangol to keep the pace up if the first well comes in. So plenty of bags left to get here yet imo regardless of Brazil, in fact I see this as only the start.

Blocks KON-11 and KON-12 both have these two large post-salt discoveries, KON 16 is purely an exploration block, They're all almost coastal with KON-4 and KON-15 right on the coast beside our blocks. There is a lot of oil offshore Angola so pretty good locations. The oil offshore has been found pre-salt and that is where most of our exploration prospective resource comes from 1bn bbls gross or thereabouts. There have only been a handful of pre-salt wells across these blocks so the exploration upside is significant and the prospective high. The company also has 31.5% wi in KON-16. So if/when they establish production from Tobias/Galinda they have a lot of big targets to hunt down. If only 10% of that 300mmbbls net comes in it would be very material to CRCL.

Regards,

Ed.