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FIRST LIGHT Corcel Plc (CRCL) – Tobias-13 Well Spudded in Angola Market Cap £2.5m Share Price 0.28p Corcel announced yesterday (10:03) that it has received notice from Sonangol (block operator and the national oil company of Angola) that the drilling of the Tobias-13 well, in which Corcel holds an 18% economic interest, has commenced. The company announced that the initial workplan for the relevant block (Block KON-11) is expected to include bringing production on early via an Early Production System and the drilling of additional wells, subject to drilling success at Tobias-13. As a reminder, the Tobias field was drilled and developed by Petrofina in the 1960’s and 1970’s. The field has been penetrated by 12 legacy wells. The field produced over 29 million barrels of oil historically. Corcel estimates that the remaining oil in place estimate for the field amounts to 65 million barrels of oil, on a 100% gross basis – a fraction of which would be produced depending on the recovery factor under a success case. For reference, the cost of the Tobias-13 well net to Corcel is expected to amount to $1.6M (on a minimum or dry-hole basis), based on company estimates, reflecting the reservoir’s shallow depth (circa 700m). WHI View: We expect this well to provide support to one of various competing interpretations of the Tobias reservoir and legacy production history, making it a very important well in our opinion from a conceptual perspective. Well/reservoir productivity and reservoir geometry/fracturing will play into the recovery factor and the Tobias-13 well will be revealing in those respects, we expect. In broad terms, we believe that Corcel’s involvement in the Tobias-13 well speaks to the strength of its local relationships in Angola. Angola has a long history as an oil producer and significant remaining potential to be unlocked, we believe. We are impressed by the pace of the progress being made by the company in Angola: We see the operator of the relevant block, Sonagol, pressing forwards and believe it is exciting to that the partners are focusing on early commercialisation of the field. We believe that oil prices will be well supported by a significant demand/supply imbalance, favouring the outlook for Corcel. Brendan Long, CFA Analyst brendan.long@whirelandcb.com 020 7220 1694
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