Corcel PLC has provided an update on its exploration and development operations in onshore Angola. The company announced that initial drilling and well testing activities at KON-11 have been suspended, with a shift in focus towards geological and geophysical data collection and studies. The Executive Chairman, Antoine Karam, expressed optimism about the developmental potential of KON-11, despite the inconclusive initial testing results. The company also highlighted the accelerating activities at its operated block, KON-16, which is believed to offer substantial upside and an attractive exploration risk/return profile.
The operator of Block KON-11 has reported the suspension of well testing operations on TO-13 due to inconclusive results, with minimal levels of water and oil produced to date. The company plans to turn its attention to geology and geoscience efforts to better understand the results and potential of the Tobias reactivation effort. Meanwhile, activities at KON-16 are expected to focus on G&G studies, including a review of existing seismic data and petrophysical analysis, with the goal of preparing an updated prospect and lead table for consideration by the block partners.
Corcel's Angola portfolio consists of three blocks in the onshore Kwanza Basin, with Block KON-11 and KON-12 considered brownfield redevelopment opportunities due to their historic production from the Tobias and Galinda fields. The company's current unproduced prospective oil resources are estimated at 65.3MMbbls for KON-11 and 19MMbbls for KON-12. Additionally, KON-16 is considered a high-upside exploration block, with significant pre-salt and post-salt targets.
Politically, the reactivation of the Kwanza Basin remains a key governmental goal in Angola, with increased activities across the blocks expected to attract more service providers and lower costs of services, equipment, and new wells in due course. The company also intends to host an investor event to cover its current plans and strategy in the near term.
In conclusion, Corcel PLC's Angola operations update reflects a strategic shift in focus towards geological and geophysical studies, as well as an optimistic outlook on the developmental potential of its blocks in the onshore Kwanza Basin.