Corcel PLC (LSE:CRCL) shares rose strongly in Wednesday morning’s trade as it has consolidated its position in Block KON-16 in Angola’s Kwanza Basin.
It announced it has acquired an additional 30% gross (27% net) interest in the block through its subsidiary APEX, taking its stake to 85% (gross).
At the same time, Corcel also agreed to divest a 5% net interest in the block to partner Sintana Energy Inc (TSX-V:SEI, OTCQB:SEUSF), freeing up $2.5 million in proceeds and marking an asset value of $50 million for the ‘pre-seismic’ exploration asset.
As part of the arrangement, Corcel and Sintana have entered a wider collaboration to seek other opportunities in Angola.
Corcel noted that the proceeds from the Sintana deal will support the seismic campaign, which is a precursor to a planned exploration well in 2026.
"We are extremely pleased to have executed two value-accretive transactions in rapid succession,” Corcel chief executive Scott Gilbert said.
“The strategic alliance with Sintana are clear validations of Corcel's first-mover advantage in the onshore Kwanza Basin. Starting with a 35% gross interest in KON-16, we increased our stake to 55% in September 2024 at no cost to Corcel.
“Today, with a modest outlay, we have secured a controlling interest in the block.
“We have firmly consolidated, monetised, and funded forward - all while preserving substantial long-term upside.”
Robert Bose, Sintana chief executive, added: "Our emerging partnership with Corcel is emblematic of our strategy to partner with best-in-class entrepreneurs and deploy high impact capital that provides exposure to significant resource opportunities.
“Our partnership with Corcel provides us a superior platform for our entry to Angola and we are particularly excited about the potential of KON-16.”
In London, Corcel shares were up 25% on Wednesday, changing hands at 0.27p.