The Company's Annual Report and Financial Statements for 2024, extracts from which are set out below, will be published and sent out to the Company's shareholders shortly and will be available on the Company's website at www.corcelplc.com.
Chairman's Statement
Dear Shareholders,
I am pleased to present Corcel Plc's Annual Report and Accounts for the financial year ending 30 June 2024. Our activities this year have set the path for a true transformation of Corcel, characterised by strategic realignment, commercial and operational milestones, and a strengthened commitment to delivering significant sustainable value for our stakeholders.
Strategic and Operational Progress
In July 2023, with the acquisition of 90% of Atlas Petroleum Exploration Worldwide Ltd ("APEX"), we embarked on a strategic pivot, focusing our efforts on high-impact onshore oil and gas assets in Angola's Kwanza Basin, namely: operated Block KON-16 and non-operated blocks KON-11 and KON-12. The operator of KON-11, Angola's national oil company, Sonangol Pesquisa e Produção, S.A. ("Sonangol"), drilled two wells (TO-13 and TO-14) in the Tobias field during Q3 and Q4 of 2023. Both wells had oil shows, indicating the presence of hydrocarbons in the field. Detailed work is currently being undertaken to assess the results and address the mechanical and performance issues, faced during the testing of these two wells.
In our operated block KON-16, we initiated Geological and Geophysical "G&G" studies and conducted an Enhanced Full Tensor Gradiometry Survey ("eFTG"), which was successfully acquired post year-end reporting during Q3, 2024, with processing ongoing. The eFTG is expected to provide highly accurate geophysical representations of critical information for developing a detailed exploration programme, comprising of a 2D seismic acquisition programme and an exploration well to establish the shallow post-salt and deep pre-salt prospectivity of KON-16.
In April 2024, to recalibrate the strategic direction, Mr. Scott Gilbert (a co-founder of APEX) was appointed as interim CEO, bringing to the Company extensive experience, operating in Brazil and in Angola, complementing the experience of Ms. Geraldine Geraldo, Executive Director (also a co-founder of APEX). In July 2024, post year end reporting, Scott was appointed as permanent CEO and an Executive Director to the Board. The newly formed management team delivered the following key milestones:
o Increased our equity in KON-16 from 31.5% to 49.5%, underscoring our confidence in what we believe to be one of the most exciting blocks in the onshore Kwanza Basin with not only a post-salt potential, but a significant pre-salt potential as well (September 2024);
o Delivered critical G&G progress, including the completion of the eFTG survey for developing prospectivity in KON-16 (Q2-Q3 2024);
o Signed a collaboration agreement with a Brazilian oil field services company, which has resulted in our entry into the country through the option agreement (with minimal dilution to shareholders) for the acquisition of gas production from the Irai field, onshore Brazil. Our collaboration has enhanced our operational capacity in Brazil, and we are presently reviewing several promising production acquisition opportunities in the region (July 2024);
o Strengthened the technical and operational team with the appointment of Chief Operating Officer, Richard Lane (November 2024);
o Secured new strategic investors with extensive experience in oil and gas in both Angola and Brazil (September 2024);
o Completed a full review and analysis of the mining portfolio, paving the way for operations to recommence in 2025 (Q3 2024).
Corcel is now firmly established as an energy company with three verticals, which intend to deliver a) significant upside through our Angola exploration assets, b) revenue from production through our entry into the Irai field and other potential acquisitions in Onshore Brazil, and c) continued exposure to rare earth and battery metals from our historical assets, which are very much at the forefront of energy transition and global electrification trends.
Financial Discipline and Fundraising
Financial resilience remains a cornerstone of our approach. In May 2024, we successfully raised £399,750 through equity issuances, reflecting continued investor confidence in our vision. These funds have been deployed strategically to advance our work programs in Angola, evaluate opportunities in Brazil, and support ongoing operational needs.
Prior to year end reporting, in June 2024, we raised a further £500,000 from strategic investors, again, reflecting investor confidence in the Company and the management team. These modest raises were completed with the intention of minimising dilution to shareholders, yet enabled the Company to deliver on several of its newly set strategic objectives.
In September 2024, the Company completed a fundraising of £1,220,000, which included the participation of several supportive long-term oil and gas investors.
We report during the period that the Group incurred a loss of £3.03 million (2023: loss of 1.26 million), primarily due to increases in administrative expenses £2.57 million (2023: £1.44 million), related to the expansion of the business and asset portfolio, and the impairment of £0.22 million to the Company's Canegrass project in Australia (2023: £nil). Project costs during the year held flat at £0.14 million (2023: £0.11 million) and finance costs fell to £0.13 million (2023: £0.45 million) reflecting the Company's transition to less expensive sources of capital.
Governance and Leadership
This year, we undertook a governance refresh to better align with our evolving strategic priorities. I was honoured to assume the role of Non-Executive Chairman. The Company is supported by a talented Board and an excellent leadership team with deep expertise across oil and gas, finance and international markets. Together, we are committed to ensuring robust governance as a foundation for existing operations and our growth ambitions.
Outlook and Future Plans
The upcoming year is poised to be one of great importance for Corcel.
Our key priorities for 2024-2025 include:
o Advancing the exploration program on KON-16;
o Building on our first acquisition, expanding our footprint in Brazil through strategic acquisitions targeting near-term production;
o Strengthening partnerships and working closely with the Operator in Angola to maximize the value of KON-11 and KON-12;
o Maximising value potential from our Battery Metals and Rare Earth assets;
o Upholding financial prudence and operational efficiency to sustain progress.
We remain steadfast in our commitment to building a balanced portfolio of energy assets, combining near-term production with long-term exploration upside, while delivering sustainable value for our shareholders.
On behalf of the Board, I extend my deepest gratitude to our shareholders for their unwavering support, to our employees for their dedication, and to our partners for their collaboration. Together, we are forging a resilient and dynamic Corcel, poised to thrive in an evolving energy landscape.