Corcel PLC has announced that preparatory work has begun for drilling and appraisal on Block KON-11 in Angola, where the company holds a 20% working interest. The initial workplan includes one or more new wells, with the focus being on early oil production if the drilling program is successful. The consortium will then evaluate the geological and geophysical data to improve the structural maps of the block and resume production. Reactivating production in the Kwanza Basin, which has been shut-in since the 1990s, is seen as an important milestone for the Angolan oil industry.
Corcel's Executive Chairman, Antoine Karam, stated that the commencement of activity in Angola is a significant milestone for the company as it refocuses its strategy and aims to create value for investors. The company will provide further updates on work plans and progress at Block KON-11 in due course.
Block KON-11 is a brownfield development that includes the historically producing Tobias field, which has been inactive since the late 1990s. The field has 12 historic vertical wells, and Corcel believes that revised interpretation of the existing structures, along with modern drilling and completion technology, could lead to higher oil production. The traditional Tobias field reservoir is in the Binga limestone, with 4-14% porosity located at a depth of approximately 700m. The field has produced 29 million barrels of oil over its lifetime, with peak production reaching 17,500 barrels per day.
Corcel estimates that there are 65 million barrels of unproduced contingent oil resources in the field, with 11.7 million barrels net to the company. The field qualifies for marginal field fiscal terms outlined by the Angolan government, resulting in advantageous royalty, tax, and depreciation regimes.
For more information, please contact Antoine Karam, Executive Chairman of Corcel, or the company's nominated advisor and broker, WH Ireland Ltd.