Corcel plc (AIM: CRCL): Restarting intervention activities at Tobias field
• Intervention activities will soon restart at the Tobias-13 and Tobias-14 wells on Block KON-11, aiming to re-establish production at the Tobias field.• Discovered in 1961, the Tobias field initially had an estimated 94 mmbbl of oil in place. Twelve wells were drilled, with eight producers reaching peak production of 17.5 mbbl/d.
• The Tobias-13 and Tobias-14 wells, drilled in late 2023/early 2024, did not flow oil to the surface during initial testing.
• Overall, the field could be re-developed with four wells to recover approximately 7 mmbbl (around 1.8 mmbbl per well), assuming an initial production rate of 600 bbl/d. Corcel holds an 18% net interest in the field.
• Our unrisked NAV for Tobias is 0.06p per share.
• The larger opportunity at KON-11 lies in exploration. There are multiple post-salt leads on KON-11 similar to Tobias. Further 2D seismic (200 line km) is expected to be conducted in 2025 to map the prospects, potentially leading to an exploration well.
• We reiterate our target price of 1.00p per share. KON-11 is one of three onshore blocks held by Corcel in the Kwanza basin. The most significant for Corcel is KON-16 (49.5% net interest), where the first exploration well will target both a post-salt (~100 mmbbl) and a pre-salt (~300 mmbbl) prospect. Successful drilling of a post-salt target could add 1.15p per share, with a further unrisked value of 3.44p per share for the pre-salt target.
Valuation
Our ReNAV is unchanged at 1.07p 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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