Corcel plc (AIM: CRCL): Equity raise from blue chip new investors bolsters balance sheet ahead of busy 2026
• Corcel has raised £3 mm of new equity at a price of 0.35 p per share from two blue chip new investors.• Following the raise, Corcel’s cash balance is expected to reach ~£6 mm by YE25. In addition, Sintana Energy will pay Corcel ~US$2 mm in cash upon closing the acquisition of a 5% interest in KON‑16. Together, the estimated cash position and receivable from Sintana represent ~25% of Corcel’s post‑raise market capitalization.
• The cash balance is significantly greater than the ~US$3 mm remaining commitment for the ongoing 2D seismic campaign, leaving Corcel with the financial flexibility to expand its position in Angola and/or pursue acquisitions. This could include a producing asset, which is core the Corcel’s business development activities. Potential opportunities include increasing its stake in KON‑11 (currently 18% WI) or KON‑12 (currently 22.5% WI). Notably, KON‑12 is particularly attractive, with four pre‑salt prospects identified, each estimated at 50–150 mmbbl of prospective resources.
• The year ahead is pivotal, as Corcel will seek a farm‑in partner for KON‑16 to drill a high‑impact exploration well by YE26. Our unrisked NAV for this well is ~6p per share, representing ~17x the current share price (assuming 71.5% interest)
• Reflecting the equity raise, we set a new target price of 1.40p per share, representing 4x the current share price.
2D seismic at KON-16
The ongoing 2D seismic acquisition programme, covering 326 line‑kilometres, will reduce line spacing from ~15 km to ~2.5 km, enabling a far more accurate representation of the subsurface. Data processing is scheduled for Q1 2026, with interpreted results expected by Q2/Q3 2026. Based on the seismic results, the initial exploration well will target both pre‑salt and post‑salt structures, with ~245 mmbbl of prospective resources net to Corcel’s working interest. Beyond the initial targets, two additional post‑salt and four additional pre‑salt prospects have been identified on KON‑16. Total unrisked prospective resources across the block are estimated at ~745 mmboe net to Corcel. Our total unrisked NAV for KON‑16 stands at ~18p per share, representing ~50x the current share price.
Valuation
Our ReNAV is 1.41 p per share. 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 per share.
Regency Mines is engaged as a natural resource exploration and development company. Co. manages a balanced portfolio of mineral and oil and gas projects and investments at different stages of development. Co. is active in multiple international locations including the U.K., Papua New Guinea, the U.S. and Greenland.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.
Auctus provides Corporate Broking, Equity Research and Investment Banking services.
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