Corcel Completes Major Angola Seismic Campaign, Eyes Drilling as Balance Sheet Strengthens

Yes, dilution – but a bigger platform

New equity does dilute, and the share count rose to 8,515,475,997 ordinary shares at 31 December 2025, then to 9,415,475,996 after the March 2026 subscription. The CEO also points out that over the last year the market capitalisation has moved from just under £10 million to roughly four times that level, with the share price up around 150%. That is the company’s claim, not new guidance.

Balance sheet snapshot and key metrics

Metric	31 Dec 2025	Prior period/point
Cash and cash equivalents	£5.183 million	£0.507 million (30 Jun 2025)
Total assets	£13.658 million	£8.313 million (30 Jun 2025)
Exploration & evaluation assets	£7.970 million	£6.806 million (30 Jun 2025)
Total equity	£8.882 million	£3.267 million (30 Jun 2025)
Current liabilities	£2.206 million	£5.046 million (30 Jun 2025)
Non-current payables	£2.570 million	Not disclosed previously
Short-term borrowings	£16,000	£555,000 (30 Jun 2025)
Loss after tax (H1)	£2.923 million	£1.694 million (H1 FY24)
Admin expenses (H1)	£2.806 million	£1.321 million (H1 FY24)
Shares in issue	8,515,475,997	9,415,475,996 post 19 Mar 2026 raise

P&L: costs step up as Corcel scales

Corcel posted a £2.923 million loss after tax for the six months to 31 December 2025, compared with £1.694 million a year earlier. Administrative expenses rose to £2.806 million from £1.321 million, driven by payroll, legal, funding costs and building technical capability as the business moves from planning to operations.

Loss per share held steady at (0.05)p. The company booked a small foreign exchange loss of £50,000 and £60,000 of other income. On cash flow, operations used £2.675 million, investment in exploration was £844,000, and equity financing provided £8.154 million, resulting in the sharp rise in cash.

Options, warrants and potential dilution

• At 31 December 2025, there were 578.4 million options and 196.45 million warrants outstanding that were anti-dilutive for EPS.
• On 19 March 2026, investors in the £3.6 million subscription received 950,000,000 warrants at £0.007, exercisable to 31 December 2027.

It is a sizeable potential overhang, though strike prices are above the subscription level and provide future funding if exercised.

Asset portfolio: exploration plus potential near-term production

• KON-16 – operated, 85% WI (71.5% net): seismic complete, first exploration well targeted within twelve months, post-salt and pre-salt objectives.
• KON-11 – non-operated, 20% WI (18% net): technical work advancing, potential for nearer-term production.
• KON-12 – non-operated, 25% WI (22.5% net): similar story to KON-11, with continued subsurface evaluation.
• Brazil: remains part of the strategy, with production-led opportunities under evaluation – specifics not disclosed.
• Battery Metals: Mt Weld REE project (80% WI). The legacy Mambare nickel-cobalt interest was written down to £nil in FY25 and is no longer classified as held for sale.

Near-term catalysts to watch

• Processing and interpretation of KON-16 seismic – expect mapping updates that set well location and target depth.
• Farm-down outcome at KON-16 – could reduce Corcel’s cash exposure to the first well.
• Rig schedule and drilling permits for the first KON-16 well within the next twelve months.
• Operational steps on KON-11 and KON-12 – any move toward production or testing would be meaningful.
• Acquisition-led production opportunities in Angola and Latin America – none disclosed yet, but flagged as active.

Risks and watchouts

• Execution risk: delivering a well on time and budget in Angola is the big test. Seismic helps, but exploration risk remains.
• Cost base: admin spend more than doubled year-on-year. Management says this builds capability, but it raises the breakeven bar.
• Dilution and warrants: the share count is higher and additional warrants could weigh on the register, albeit with potential cash inflow on exercise.
• Non-current payables of £2.570 million appeared this half. The detail is not broken out in the RNS.

Josh’s take: credible progress, now it is all about the drill

This reads like a company that has moved from talk to doing. Completing a 326 km seismic campaign safely and quickly, boosting cash to £5.2 million, and lining up further funds puts Corcel in the right shape for a first KON-16 well and a potential farm-down. That is all positive.

The flip side is a bigger cost base, continuing losses, and meaningful dilution – realities of early-stage E&P. For me, the de-risking from fresh seismic is the needle-mover. If processing confirms robust post-salt and pre-salt targets and a partner steps in on carry terms, the risk-reward tightens favourably. Until then, it is a funding-backed runway to the well.

Net-net: a constructive half-year with tangible operational progress and a sturdier balance sheet. The next updates on seismic interpretation, farm-down, and the KON-16 drill schedule will determine whether Corcel can turn momentum into barrels and cash flow.