Corcel provides an update on the drilling results of the Tobias-13 ("TO-13") well in onshore Block KON-11, in Angola, where the Company has a 20% working interest (18% net). The operator is Sonangol, the largest hydrocarbon producer in Angola.

Highlights:

• TO-13 drilling - at a downdip location from historic production - has ended as planned at a target depth of 958.5m
• Full Binga reservoir section (~120m) encountered in the well as prognosed with several potentially productive zones seen in multiple intervals
• Results confirm the ability to reactivate production through an early production system ("EPS") and imply significant hydrocarbon potential remaining
• Rig move to second well location currently underway  

Antoine Karam, Executive Chairman of Corcel, commented: 
"The initial results of the TO-13 well are an important moment for Corcel and highly encouraging, having successfully demonstrated hydrocarbons across multiple potentially productive zones and multiple intervals.  TO-13 looks to cornerstone development of a future EPS and provides Corcel with line of sight to near-term revenue generation, and the testing programme will give us invaluable data on how best to deliver on that goal.  We look forward to providing further updates on activities at TO-14 as they progress." 

Tobias-13 Drilling Results

The Operator, Sonangol, have advised Corcel that the Tobias-13 well penetrated the entire Binga reservoir section (~120m column), with potential productive zones seen in multiple intervals. The well concluded with a total depth of 958.5m, and was drilled in a downdip location from historic production wells, indicating scope for significant remaining hydrocarbon production potential.
The drilling results for the TO-13 well were positive, with oil shows found throughout the Binga reservoir in alignment with the distribution seen in historic production wells in the Tobias field, confirming the ability to reactivate production in the field.  Based on these results, the consortium is proceeding to drill a second well Tobias-14 ("TO-14"), with a rig move currently underway. 

Tobias-14 and Well Testing

With a view towards implementation of an EPS, the consortium is proceeding immediately to drill TO-14 (~1.3Km north-east of TO-13), with a spud date expected in mid-November.  In line with TO-13, TO-14 drilling is expected to last approximately 40-50 days, running concurrent with geological and geophysical studies on TO-13 results.

Resuming exploration activities in Block KON-11, specifically reactivating production in the Kwanza basin that has been shut-in since the 1990's, represents an important milestone for the Angolan oil industry and for Corcel itself. 

The Company will make additional announcements on further progress at KON-11 in due course. 

About KON-11 and the Kwanza Basin

As previously announced, KON-11 is considered a brownfield development and includes the historically producing Tobias field, drilled, and developed by Petrofina in the 1960s and 1970s, and inactive since the late 1990s.  The Tobias field constituted 12 historic vertical wells, and Corcel and the operator believe that revised interpretation of the existing structures along with the application of modern drilling and completion technology, including potentially horizontal drilling will lead to a higher Original Oil in Place ("OOIP) figure in the reactivated field being achieved.

The traditional Tobias field reservoir is in the Binga limestone, located at a depth of approximately 700m along the crest of the structure, with 4-14% primary rock porosity which is enhanced by a naturally fractured carbonate system.  Historic peak production at Tobias was 17,500 bbls/d with 29 MMbbls produced over the life of the field. 

Corcel's estimated unproduced contingent oil resources are estimated at 65 MMbls with 11.7 MMbls net to CRCL, the field will qualify for marginal field fiscal terms, as outlined by the Angolan government, resulting in advantageous royalty, tax and depreciation regimes.

KeyFacts Energy: Corcel Angola country profile