Corcel PLC
("Corcel"
or the "Company")
Brazil Collaboration
Agreement
10 July
2024
Corcel Plc (London AIM:
CRCL), the pan
Angola-Brazil focused exploration and production company, is
pleased to announce that it has signed a Collaboration Agreement
(the "Agreement") with Conterp Serviços Técnicos Ltda ("Conterp"),
an energy services company operating onshore Brazil, under which
the companies will work together to identify, evaluate and acquire
producing onshore oil and gas fields in
Brazil.
Under the Agreement, the Company and
Conterp will collaborate to jointly develop a pipeline of onshore
opportunities in Brazil, where they will use their respective
resources to assess, rank and access with the intention to acquire
attractive producing assets. The partnership will combine Conterp's
local market knowledge and relationships, access to technology,
services, equipment and expertise of asset management of onshore
Brazil oil and gas fields with Corcel's subsurface capabilities,
access to capital markets and offtakers. The Parties have a
particular interest at present in pursuing projects focused on
producing onshore oil and gas fields with significant development
and exploration upside in the Alagoas, Sergipe, Bahia, Rio Grande
do Norte, Rio de Janeiro, and Espirito Santo regions, where Conterp
operates.
Conterp is an energy services
company, with over 20 years of experience and over 800 employees,
providing Well Services, Drilling Contracting, Operation and
Maintenance, and Asset Integrity Management services. Its portfolio
holds a significant number of operational assets (equipment and
technology) ranging from several workover rigs, to well services
and well intervention equipment. The Company views Conterp as a
strong go-to-market partner for onshore Brazil oil and gas
assets.
Corcel Interim CEO Scott Gilbert commented:
"Our
collaboration with Conterp provides access to a pipeline of
acquisition opportunities. Given the well-understood geological
landscape and mature nature of the market onshore Brazil, our
strength lies in our ability to execute 'above-the-ground.' This is
where our partnership with Conterp is crucial, providing Corcel
with a strong advantage."
Conterp CEO Oswaldo Souza commented: "We are looking forward to
embarking on this collaboration with Corcel. We are confident that
our technical and operational experience in the oil and gas sector
onshore Brazil will complement Corcel's, by providing Corcel with a
strategic partner that can mitigate execution risk and accelerate
production in future assets they may seek to
acquire."
For
further information, please contact:
Corcel Plc:
Scott Gilbert, Interim
CEO
Development@Corcelplc.com
WH
Ireland (NOMAD &
Broker):
James Joyce / James Bavister /Andrew de Andrade
0207 220 1666
Vigo Communications (IR):
Patrick d'Ancona
0207 3900 230
About Conterp
Conterp, based in Salvador, Brazil,
is an energy services company founded in 2001 and that has grown
rapidly since inception providing a wide service offering to a
diversified client base within the production segment of the oil
field services industry. Conterp's clients include small-cap,
mid-cap and large-cap E&P companies such as Petrobras, Carmo
Energy, Braskem, Origem, 3R, Eneva and The Dow Chemical
Company.
Conterp's current focus is to
service producing oilfields where customers' operations have tended
to be more insulated from commodity price cycles inherent in the
oil & gas industry. It is now gearing for penetration of
renewable energy market services through existing client
relationships and transferable skills and equipment.
Conterp has a track record of
delivering long-term projects with its established client base and
is well-positioned for supporting acquisition of future
opportunities from Petrobras' past and planned additional
divestments through to 2027.
Corcel's Interim CEO, Scott Gilbert,
indirectly owns 12.7% of Conterp's share capital.
About Corcel
In oil and gas, Corcel has a notable
portfolio onshore Angola that includes brownfield development
opportunities and significant exploration upside. On the brownfield
development, focus has been on reactivation of the Tobias field in
block KON 11 with two wells drilled in 2H23 with oil shows.
Additional work in G&G and engineering is underway to review
the results of the drilling campaign and the well testing programs
conducted through 1Q24.
The Company is also focused on the
implementation of its exploration program in both its operated
asset, block KON 16 and its non-operated assets, namely block KON
11 and block KON 12. On June 7th, the Company announced
that it had received all relevant approvals to acquire new G&G
data through an Enhanced Full Tensor Gradiometry Survey (eFTG) to
be conducted by the Metatek Group during Q3 2024 aimed at
delivering new geological insights into the prospectivity of the
Tobias and Galinda fields, other potential leads and prospects, and
provide insights to enable the reactivation of the
brownfields.
Corcel's
portfolio consists of interests in three licences:
· KON - 11
Non-Operated - 20% working interest - 18% net to CRCL
· KON - 12
Non-Operated - 25% working interest - 22.5% net to CRCL
· KON - 16 Operated
- 35% working interest - 31.5% 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.