Corcel to shift exploration focus amid nitrogen shortage

15th Apr 2024 08:22

(Sharecast News) - Angola-focussed energy explorer and producer Corcel updated the market on progress at the Tobias Field reactivation on Monday, in Block KON-11 within the Kwanza Basin, where it holds a 20% working interest, or 18% ne.

The AIM-traded firm said Sonangol, one of Angola's major hydrocarbon producers, was overseeing the operation.

It reported the conclusion of initial well test activities at the TO-14 well in Block KON-11, with ongoing engineering efforts set to continue.

Nitrogen-assisted well clean-up operations revealed "significant" water production alongside oil shows and nominal oil saturation levels.

In response to nitrogen shortages in Luanda, in collaboration with Block Partners, the operator had chosen to transition to testing the TO-13 well.

Situated in what was deemed the least drained section of the reservoir and historic field, TO-13 presented an alternative focus for testing.

The equipment relocation process was estimated to span seven days, following which formal testing would start at TO-13.

Pending a successful well test and associated engineering evaluations, the operator was planning to revert to TO-14 to resume well clean-up and testing activities.

"With TO-13 testing shortly to commence, we will soon have an additional data set to aid in our efforts to both produce commercial oil in the short term and to reactivate and build out the Tobias field over the longer term," said executive chairman Antoine Karam.

"The company and its technical team remain buoyant regarding the ongoing potential of our Angolan interests in the Kwanza Basin."

At 0955 BST, shares in Corcel were down 12.33% at 0.32p.

Reporting by Josh White for Sharecast.com.