Corcel Delivers First Gas Production in Brazil
Why we think this is good
The successful workover of the EI-1 well in the IRAI field, with the well set to be brought online within 7 days, is a positive development for Corcel. The company has demonstrated its ability to execute on its strategy of acquiring cash-generating assets in Brazil, and the ROFR over the IRAI field and adjacent block provides expansion potential. However, the limited information on the commercial terms and overall production potential of the asset is a concern.
Key Points
- Successful workover of the EI-1 well in the IRAI field, Brazil
- Confirmed sustained gas production at 20,000m³/day (120 BOEPD / 706 Mscf)
- Well set to be brought online within the next 7 days, generating immediate revenue
- Corcel has a ROFR over 80% of the IRAI field and 100% of the adjacent TUC-T-172 block
Summary
Corcel Plc has announced the successful completion and initial results of the EI-1 well workover in the IRAI field in Brazil, where the company holds an option to acquire a 20% interest. The workover confirmed sustained gas production at 20,000m³/day (120 BOEPD / 706 Mscf), aligning with historical production rates. The well is set to be brought online within the next 7 days, reinforcing Corcel's strategy of acquiring cash-generating assets. Corcel has a Right-of-First-Refusal (ROFR) over 80% of the IRAI field and 100% of the adjacent TUC-T-172 block, positioning the company to expand its presence in a proven gas-producing region.