Corcel PLC
("Corcel" or the
"Company")
KON-16 Increase in Working
Interest
Strategic Investor -
Fundraising
24 September
2024
Corcel Plc (London AIM: CRCL), the pan
Angola-Brazil focused energy company, is pleased to announce that
its 90% subsidiary, Atlas Petroleum Exploration Worldwide Limited
(APEX), has received authorisation from the National Concessionaire
of Angola, the National Agency for Petroleum, Gas and Biofuels
("ANPG") for the assignment of an additional 20% interest in its
operated block KON-16, onshore Angola. The assignment of this
incremental equity, which will result in APEX holding a 55% gross
(49.5% net to Corcel) equity interest in KON-16, is subject to the
procedures set out in the Joint Operating Agreement ("JOA") and the
requisite governmental approvals.
The Company simultaneously announces a subscription
of £1,220,000 with strategic investors to fund its ongoing
operations and strategy in both Angola and Brazil.
Highlights:
o Acquistion of an
additional 20% interest in block KON-16 in the Kwanza Basin,
Angola, brings Corcel's interest, as operator, in the block to 55%
gross / 49.5% net at no cost to Corcel
o Introduction of new
strategic investors with significant oil and gas experience to the
Company's investor register
o Completion of an
equity funding raising of £1,220,000 gross at a price of £0.001 per
share
Corcel CEO Scott Gilbert commented: "We continue to pursue a
strategy focused on our three energy verticals - exploration, near
term production, and the support for energy transition through our
battery metals portfolio. This significant increase in our
working interest in KON-16 is an important milestone. Increasing
our stake at no cost to the Company, demonstrates the creative and
accretive nature of the opportunities we are continuously
targeting, and sets us up with a commanding position in what we
believe to be the most exciting onshore block in the Kwanza basin,
having had oil shows in the pre-salt from the historical well
drilled in the 1960's.
Additionally, the support secured in this fundraise from
strategic investors that have deep experience in oil and gas
sector, and in Angola in particular, is a testament to our sound
strategy and a foundation for sustainable growth. We are grateful
to the National Concessionaire of Angola, ANPG, for their continued
support. Since taking over as concessionaire in 2019, ANPG
continues to act as a true partner for oil and gas companies by
providing a great environment for investments, through timely
approvals, measures to limit financial exposure, as well as
flexible terms for companies in Angola. We look forward to making
further announcements on our exploration efforts in KON-16 and
other progress in our other two verticals in the near
term."
KON-16
Acquisition:
The acquisition of this incremental interest,
pursuant to the JOA for the block and subject to obtaining the
requisite governmental approvals, shall be free of any costs to
APEX and will take Corcel's total interest in KON-16, where Corcel
is the Operator, from 35% to 55% gross (49.5% net) to the
Company.
o The Acquisition,
which has become available due to a withdrawal of a partner to the
block for reason unrelated to the block itself or its operations,
provides the Company with a material operated interest in block
KON-16 - a large 1,022 km2 block (252,500 acres) in the
onshore Kwanza Basin, Angola
o As KON-16 operator -
Corcel has full control on costs and exploration timelines
o Enhanced Full Tensor
Gradiometry Survey ("eFTG") acquisition completed in September
(press release on 10 September 2024) over 100% of the license area
- final product expected before year-end
o eFTG will be fully
integrated with the existing technical data over KON-16 and will
enable the Company to high-grade prospective areas
o Results of the eFTG
data integration will allow the company to design a focused 2D
seismic acquisition program in 2025 - with acquisition, processing,
and interpretation all currently estimated to occur in 2025
o New seismic
acquisition in 2025 will allow the Company to drill the first new
well on KON-16 since the 1960s
o Any new well drilled
on KON-16 would be testing significant potential resources and
success would be highly significant to Corcel and the people of
Angola
Fundraising:
The Company has raised £1,220,000 from the issuance
of 1,220,000,000 new ordinary shares ("Placing Shares") of £0.0001
at a price of £0.001 per share (the "Fundraising") to a group of
strategic investors who are supportive of the Company's strategic
plans in Angola and Brazil.
The Company intends to use these proceeds to advance
its operations in Angola, including in block KON-16, and to pursue
additional opportunities both in Angola and Brazil with more
details to be announced in due course.
General Meeting:
The Fundraising will result in the
issuance of 1,220,000,000 new ordinary shares. Currently, the
Company has limited remaining shareholder authority to issue new
ordinary shares for cash on a non-pre-emptive basis.
Accordingly, 580,000,000 of Initial Placing Shares ("Initial
Placing Shares") will be issued under the Company's existing share
authorities, whilst 640,000,000 of Further Placing Shares ("Further
Placing Shares") are to be conditional upon, inter alia, the
passing of resolutions to be put to shareholders of the Company at
a general meeting of the Company.
The Company will publish a
circular to convene the General Meeting to propose Resolutions to
enable completion of the Placing and a renewal of routine equity
authorities to support the Company's ongoing operations. A
further announcement covering the details of the general meeting
will be made and a circular containing the notice of meeting will
be published and sent to shareholders in the coming days and will
be available on the Company's
website, www.corcelplc.com. Shareholders are urged to
vote by proxy in accordance with the instructions set out in the
notice of general meeting.
Total Voting
Rights:
Application will be made for the 580,000,000 Initial
Placing Shares to be admitted ("Admission") to trading on AIM and
it is expected that Admission will occur on or around 01 October
2024.
Following Admission, the Company confirms that its
total issued share capital will consist of 3,038,300,515
Ordinary Shares, with one voting right per Ordinary Share. The
Company does not hold any Ordinary Shares in treasury. This
figure may be used by shareholders in the Company as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change in their
interest in, the share capital of the Company pursuant to the
FCA's Disclosure Guidance and Transparency Rules.
Further updates will be provided on
the Total Voting Rights following completion of the upcoming
general meeting and issuance and admission of the Further Placing
Shares.
For
further information, please contact:
Scott
Gilbert
Corcel Plc CEO
Development@Corcelplc.com
James Joyce / James Bavister /Andrew de Andrade
Zeus Capital NOMAD &
Broker
0207 220 1666
Patrick d'Ancona
Vigo Communications IR
0207 3900 230
About Corcel
Corcel has a notable oil and gas
portfolio in onshore Angola that includes brownfield development
opportunities and significant exploration upside.
Corcel's
Angola portfolio consists of interests in three
licences:
· KON
- 16 Operated - 55% working interest - 49.5% net to CRCL
· KON
- 11 Non-Operated - 20% working interest - 18% net to
CRCL
· KON
- 12 Non-Operated - 25% working interest - 22.5% net to
CRCL
The information contained within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse Regulation (EU) No. 596/2014
which is part of UK law by virtue of the European Union
(withdrawal) Act 2018. Upon the publication of this announcement,
this inside information is now considered to be in the public
domain.