Corcel plc (AIM: CRCL): Equity raise to accelerate activities

• Corcel has raised £3.6 mm of new equity at a price of 0.40p with Investors also receiving one warrant per new share, exercisable at 0.70p per share.
• The warrants include an accelerator clause: if the shares trade at or above 0.85p for 25 consecutive trading days, the company may issue notice requiring warrant holders to exercise within 30 days.
• The additional capital enables Corcel to procure long‑lead items for the upcoming KON‑16 exploration well. This strengthens the company’s negotiating position in ongoing farm‑in discussions, where we understand multiple counterparties are already engaged.
• The warrant‑accelerator clause also creates a pathway to self‑fund a post‑salt well, adding meaningful optionality to the exploration programme.
• Corcel continues to evaluate potential acquisitions, including increasing its interests in KON‑11 and KON‑12. A stronger balance sheet enhances its ability to execute such transactions.
• Corcel currently holds 18% WI in KON‑11 and 22.5% WI in KON‑12. KON‑12 is particularly attractive, with four pre‑salt prospects identified with each estimated to hold 50–150 mmbbl of prospective resources.
• We maintain our 1.40p per share target price, incorporating the equity raise and updated £/US$ exchange rate. With improved negotiating leverage, we have marginally reduced the assumed asset‑value dilution associated with a farm‑in (previously ~50%).
• Our unrisked NAV for the first KON‑16 well remains over 5.2p/sh (assuming a 71.5% working interest), equivalent to roughly 13× the current share price.

Upcoming newsflow
The initial results of the recently acquired 2D seismic over KON‑16 is expected in 3Q26. Based on the results, the initial exploration well is planned to test both pre‑salt and post‑salt targets, with an estimated ~245 mmbbl of prospective resources net to Corcel’s working interest. The previously announced divestment of a 5% WI in KON‑16 to Sintana Energy for US$2.5 mm is expected to close in 2Q26. Total unrisked prospective resources across KON‑16 are estimated at ~745 mmboe net to Corcel, highlighting the scale of the opportunity. Our unrisked NAV for KON‑16 stands at ~18p/sh, representing over 40× the current share price.

Valuation
Our ReNAV is 1.44p/sh. It includes only one pre-salt and one post-salt prospect at KON-16. The overall unrisked NAV of the company based on its entire portfolio of leads and prospects is ~21 p/sh.