Corcel PLC (LSE:CRCL)’s share price rallied after it confirmed that the Tobias-13 (TO-13) oil well in Angola has significant potential for further production.
Its share price rose to a peak of 0.69p on Friday morning, before settling at 0.60p by 09.53 am, slightly above its closing price of 0.59p yesterday.
The mining company said it has concluded drilling at the location in onshore Block KON-11 where historic production had previously taken place in the Binga reservoir at a target depth of 958.5 metres.
Corcel, which has a 20% interest in the block, said the results “confirm the ability to reactivate production” through an early production system and suggested that there is “significant hydrocarbon potential remaining”.
Antoine Karam, executive chairman of Corcel, said: "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."