Corcel PLC Reports Transformational Year with Kwanza Basin Dominance and Strengthened Balance Sheet

Why these FY25 results matter for Corcel shareholders

Corcel’s audited FY25 results show a business that has completed its pivot into oil and gas and is now executing at pace in Angola’s onshore Kwanza Basin. The year was defined by consolidation of the flagship KON-16 block, a fully funded seismic programme, and a step-change in financial flexibility post year-end. The flipside: sizeable legacy write-downs drove a larger statutory loss, and the real value unlock still rests on 2025 seismic and a first well in 2026.

If you’ve been watching for a credible pathway from “assets on paper” to “drill-ready”, this update delivers it. The Board also flags better governance, deeper technical bench strength, and management skin in the game – all welcome when a company is moving from talk to action.

Kwanza Basin: KON-16 control, cash in the door, seismic locked

KON-16 moved from a minority position to near-basin control. Corcel reports it has increased its net interest from 31.5% to 71.5% (subject to regulatory approval) and now has 80% operated control through APEX. That kind of consolidation matters: it improves strategic optionality, simplifies partner dynamics, and increases Corcel’s share of any future success.

• Interest build-up: 31.5% start of period, 49.5% at no cost (Sep 2024), a further 27% acquired (May 2025), then a conditional 5% monetised for $2.5 million to Sintana – validating asset value while retaining control.
• Technical progress: 100% coverage eFTG (gravity gradiometry), legacy 2D reprocessing, high-graded leads, and permits in hand. The Environmental Impact Assessment for seismic is approved post period.
• 2025 work programme: a 2D seismic acquisition of 326 line-km is designed, contracted with BGP after competitive tender, and fully funded.
• 2026 target: drill an exploration well testing both post-salt and pre-salt potential – a basin-making catalyst if successful.

Crucially, Corcel also booked a $500,000 deposit from Sintana (shown as £0.38 million deferred income), with a further $2.0 million subject to completion. That’s smart portfolio management: partial monetisation at an early stage without sacrificing operatorship or momentum.

KON-11 and KON-12: brownfield activity for nearer-term cash

Workovers restarted at Tobias-13 and Tobias-14 in January 2025, with production restoration plans advancing. Across KON-11 and KON-12, Corcel completed eFTG (100% in KON-12, 41% in KON-11) and is lining up potential 2D seismic in 2026. The strategy is clear: create a blend of near-term production and high-impact exploration across an integrated Kwanza acreage package.

Brazil: the option expired, but the playbook is unchanged

The IRAI Field option in Brazil has expired, though the reported workover during the option period delivered 20,000 m³/day (circa 120 boe/d gross). The CEO’s positioning here is pragmatic: a rolling screen of low-risk, short-cycle, onshore gas opportunities designed to be non-dilutive and complementary to Angola.

Financial health: stronger balance sheet, still loss-making

FY25 is a transition year on the P&L. The statutory loss widened mainly due to legacy write-downs rather than operating overrun. Post year-end, cash resources were bolstered significantly via a placing and a large warrant exercise, leaving the 2025 seismic fully funded and providing optionality for farm-downs or acquisitions.

Key metric	FY25	FY24
Loss after tax	£6.78 million	£3.03 million
Loss – continuing operations	£3.59 million	£3.01 million
Loss – discontinued operations	£3.20 million	£0.03 million
Administrative expenses	£3.13 million	£2.57 million
Cash at 30 June	£0.51 million	£0.27 million
Exploration & evaluation assets	£6.81 million	£7.71 million
Current liabilities	£5.05 million	£6.17 million
Short-term borrowings	£0.56 million	£1.33 million
Basic EPS	(0.17) pence	(0.20) pence

Funding runway and liquidity

• During FY25: £1.22 million raised (Sep 2024 at £0.001) and £2.72 million (Feb 2025 at £0.0016).
• Post year-end: £1.1 million placing (July 2025), £3.85 million from accelerated warrant exercises, and £3.0 million placing (December 2025 at £0.0035).
• Fully funded for the 326 line-km KON-16 seismic and core operational and business development activities through 2026.

On the negative side, discontinued operations (Mambare/Oro Nickel) generated a £3.20 million loss after the exploration licence was not renewed, and Mt Weld was impaired by £0.179 million as non-core. These are now largely ring-fenced legacy issues.

Governance and leadership: built for execution

Corcel highlights a cleaner governance framework, Board refresh, and direct personal investment from management. Key moves include the appointment of Chairman Pradeep Kabra and COO Richard Lane, plus enhanced Audit and ESG oversight. The tone is one of accountability and speed – exactly what investors want when a company is in its most active phase.

My take: the investment case now rests on KON-16 data and a 2026 well

Positives first: Corcel has executed the playbook – consolidate operatorship, bring in a strategic partner to validate asset value, secure fully funded seismic, and clear the path to a 2026 exploration well. The Board says shareholder alignment is strong, cash has improved markedly after year-end, and the auditor raises no material going concern uncertainties.

The risks are the usual ones for frontier onshore exploration: subsurface risk ahead of new seismic, execution risk on the ground, and dependency on regulatory approvals to finalise the KON-16 working interest. The balance sheet at the June year-end was still tight versus liabilities, though subsequent fundraises and warrant proceeds have eased that strain. Brazil remains a watch-list, not a driver, for now.

Net-net, the story has moved from aspiration to funded activity. If the 2025 2D seismic sharpens targets as hoped, the first KON-16 well in 2026 becomes a basin-level catalyst. That’s where the step-change value lives.

What to watch next

• KON-16 seismic acquisition and interpretation in 2025 – a matured prospect inventory is the near-term deliverable.
• 2026 first exploration well at KON-16 – a “make or break” event for valuation.
• KON-11/KON-12 workovers and any production restoration – nearer-term cashflow potential.
• Farm-downs or producing acquisitions – the CEO hints at optionality.
• Regulatory completion on KON-16 interest changes and Sintana transaction – de-risking the structure and cash receipts.

AGM and housekeeping

The AGM will be held at 10:00 am on Wednesday 28 January 2026 at The Wigmore Room, 33 Cavendish Square, London W1G 0PW. The full Annual Report and Accounts will be available on the Company’s website in due course. The auditor’s opinion is unqualified, with no material uncertainties over going concern highlighted.

Bottom line

Corcel closes FY25 as a focused operator with a commanding position in an increasingly interesting onshore basin, a better-capitalised balance sheet, and a clear operational calendar. The costs of getting here show up in the statutory loss, but the real yardstick now is whether 2025 seismic and a 2026 well can unlock the Kwanza Basin thesis. If they can, this year will be remembered as the setup.