Corcel, the pan Angola-Brazil focused energy company, has announced 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. 

“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,” Corcel CEO Scott Gilbert commented.

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.  

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

As KON-16 operator – Corcel has full control on costs and exploration timelines

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

eFTG will be fully integrated with the existing technical data over KON-16 and will enable the Company to high-grade prospective areas

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

New seismic acquisition in 2025 will allow the Company to drill the first new well on KON-16 since the 1960s

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.