The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Of course Layla, but joke with the information to hand. Im good in at 0.38p, topped up this morning.
- Funded
- Oil Proven,
- current mcap x at least 5-10 (£50-100m) is underpinned now
- historically producing field, so production pretty mucb guaranteed per RNS
- downside risk is pretty much zero
- Upside is HUGE just on current info and todays RNS
- Circa $1bn of Oil to CRCL from this drill alone.
- 300mmbls across all prospects
LFG!!
APEX Portfolio Overview:
The APEX portfolio is located onshore Angola, and consists of interests in three licences:
o KON - 11 Non-Operated - 12 historical wells (20% working interest - 18% net to CRCL)
o KON - 12 Non-Operated - 8 historical wells (25% working interest - 22.5% net to CRCL)
o KON - 16 Operated - 1 historical well (35% working interest - 31.5% net to CRCL)
KON-11 and KON-12 are considered brownfield development opportunities and include the historically producing Tobias and Galinda fields, both drilled and developed in the 1960s and 1970s by Petrofina, with combined historic production over 30 MMbbls. Both licences are operated by Sonangol (the Angolan national oil company).
APEX's total reported unproduced contingent oil resources are estimated at:
o KON-11 - 65 MMbbls, 11.7 MMbls net to CRCL
o KON-12 - 19 MMbbls, 4.28 MMbls net to CRCL
All three blocks have significant post and pre-salt prospective resources, both stratigraphic and structural with APEX estimating Prospective Resources of:
o Post-salt 456 MMbbls - unrisked P50 (138 MMbo risked), 81.1 MMbls net to CRCL
o Pre-salt 1,029 MMbbls - unrisked P50 (223 MMbo risked), 215.9 MMbls net to CRCL
Targeting over 300MMBls to us
11.7m is to CRCL so $990m
Given 120m, could be another 20%, so closer to 15m
So well north of $1.2bn to CRCL. Thats their share, and we have a mcap of 10m. Joke.
Across all prospects over 300mmbls to CRCL.
Bloomy, 5-10x BECAUSE the potential of other wells and also the massive prospect of 300mmbls starts to be priced in.
Look at 88e and idiotic oilers and their mcaps with less proven than here, jst based on potential.
This is a HUGE result, make no mistake and only the start.
I think its the 300mmbls that really does it, 11.7-15mmbls underpins a £100m mcap easily, so the downside risk is next to zero, and upside is huge just on this initial drill.
What an opportunity to get in at ground zero.
APEX Portfolio Overview:
The APEX portfolio is located onshore Angola, and consists of interests in three licences:
o KON - 11 Non-Operated - 12 historical wells (20% working interest - 18% net to CRCL)
o KON - 12 Non-Operated - 8 historical wells (25% working interest - 22.5% net to CRCL)
o KON - 16 Operated - 1 historical well (35% working interest - 31.5% net to CRCL)
KON-11 and KON-12 are considered brownfield development opportunities and include the historically producing Tobias and Galinda fields, both drilled and developed in the 1960s and 1970s by Petrofina, with combined historic production over 30 MMbbls. Both licences are operated by Sonangol (the Angolan national oil company).
APEX's total reported unproduced contingent oil resources are estimated at:
o KON-11 - 65 MMbbls, 11.7 MMbls net to CRCL
o KON-12 - 19 MMbbls, 4.28 MMbls net to CRCL
All three blocks have significant post and pre-salt prospective resources, both stratigraphic and structural with APEX estimating Prospective Resources of:
o Post-salt 456 MMbbls - unrisked P50 (138 MMbo risked), 81.1 MMbls net to CRCL
o Pre-salt 1,029 MMbbls - unrisked P50 (223 MMbo risked), 215.9 MMbls net to CRCL
APEX Portfolio Overview:
The APEX portfolio is located onshore Angola, and consists of interests in three licences:
o KON - 11 Non-Operated - 12 historical wells (20% working interest - 18% net to CRCL)
o KON - 12 Non-Operated - 8 historical wells (25% working interest - 22.5% net to CRCL)
o KON - 16 Operated - 1 historical well (35% working interest - 31.5% net to CRCL)
KON-11 and KON-12 are considered brownfield development opportunities and include the historically producing Tobias and Galinda fields, both drilled and developed in the 1960s and 1970s by Petrofina, with combined historic production over 30 MMbbls. Both licences are operated by Sonangol (the Angolan national oil company).
APEX's total reported unproduced contingent oil resources are estimated at:
o KON-11 - 65 MMbbls, 11.7 MMbls net to CRCL
o KON-12 - 19 MMbbls, 4.28 MMbls net to CRCL
All three blocks have significant post and pre-salt prospective resources, both stratigraphic and structural with APEX estimating Prospective Resources of:
o Post-salt 456 MMbbls - unrisked P50 (138 MMbo risked), 81.1 MMbls net to CRCL
o Pre-salt 1,029 MMbbls - unrisked P50 (223 MMbo risked), 215.9 MMbls net to CRCL
Targeting over 200MMBls to us
APEX Portfolio Overview:
The APEX portfolio is located onshore Angola, and consists of interests in three licences:
o KON - 11 Non-Operated - 12 historical wells (20% working interest - 18% net to CRCL)
o KON - 12 Non-Operated - 8 historical wells (25% working interest - 22.5% net to CRCL)
o KON - 16 Operated - 1 historical well (35% working interest - 31.5% net to CRCL)
KON-11 and KON-12 are considered brownfield development opportunities and include the historically producing Tobias and Galinda fields, both drilled and developed in the 1960s and 1970s by Petrofina, with combined historic production over 30 MMbbls. Both licences are operated by Sonangol (the Angolan national oil company).
APEX's total reported unproduced contingent oil resources are estimated at:
o KON-11 - 65 MMbbls, 11.7 MMbls net to CRCL
o KON-12 - 19 MMbbls, 4.28 MMbls net to CRCL
All three blocks have significant post and pre-salt prospective resources, both stratigraphic and structural with APEX estimating Prospective Resources of:
o Post-salt 456 MMbbls - unrisked P50 (138 MMbo risked), 81.1 MMbls net to CRCL
o Pre-salt 1,029 MMbbls - unrisked P50 (223 MMbo risked), 215.9 MMbls net to CRCL
Just the start and over 200MMbls to us on the way!!
Remember this ain’t a one drill pony. They’re partnered with Sonangol on several blocks.
Here’s the RNS from May when we acquired these blocks from APEX
APEX Portfolio Overview:
The APEX portfolio is located onshore Angola, and consists of interests in three licences:
o KON - 11 Non-Operated - 12 historical wells (20% working interest - 18% net to CRCL)
o KON - 12 Non-Operated - 8 historical wells (25% working interest - 22.5% net to CRCL)
o KON - 16 Operated - 1 historical well (35% working interest - 31.5% net to CRCL)
KON-11 and KON-12 are considered brownfield development opportunities and include the historically producing Tobias and Galinda fields, both drilled and developed in the 1960s and 1970s by Petrofina, with combined historic production over 30 MMbbls. Both licences are operated by Sonangol (the Angolan national oil company).
APEX's total reported unproduced contingent oil resources are estimated at:
o KON-11 - 65 MMbbls, 11.7 MMbls net to CRCL
o KON-12 - 19 MMbbls, 4.28 MMbls net to CRCL
All three blocks have significant post and pre-salt prospective resources, both stratigraphic and structural with APEX estimating Prospective Resources of:
o Post-salt 456 MMbbls - unrisked P50 (138 MMbo risked), 81.1 MMbls net to CRCL
o Pre-salt 1,029 MMbbls - unrisked P50 (223 MMbo risked), 215.9 MMbls net to CRCL
Both the Tobias (KON-11) and Galinda (KON-12) fields were discovered and originally developed in the 1960s. Both reservoirs are in the Binga limestone with 4-14% porosity and located at 700m and 1,900m respectively. Peak production at Tobias was approximately 17,500 bbls/d and at Galinda was approximately 2,700 bbls/d. Historic total production, which started in 1960 and ceased in the early '80s, was 29MMbbls and 2.8MMbbls respectively. APEX and Corcel believe that significant recoverable volumes of oil remain in place at both locations and initial plans may include additional seismic work to firm up drill locations, as well as a combination of vertical and horizontal wells. The development plan envisioned for KON-11/12/16 qualify for marginal field fiscal terms, as outlined by the Angolan government, resulting in advantageous royalty, tax and depreciation regimes
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
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