LONDON (Alliance News) - Circle Oil PLC Wednesday said increased operational activity reduced its profit in the first half of the year but revenue increase as a result of its oil and gas sales.
Pretax profit for the six months ending June 30 was down by 36% to USD9.4 million from USD14.7 million in the first half of 2013. This was due to additional expenditure relating to increased operational activity, it said.
Circle increased payments for exploration and evaluation assets to USD26.5 million in the first half of 2014 from USD9.4 million in 2013. Administration costs also increased to USD3.0 million from USD2.0 million in 2013.
Revenue increased 13% to USD47.8 million in the first-half compared to USD42.3 million in the comparable period in 2013 due to a 13% increase in oil and gas sale revenue to USD47.8 million in the six months to June 30, compared to USD42.3 million in the first-half of 2013. This was due to an 11% increase in volume of oil sold in Egypt with a similar increase in sales of gas in Morocco, it said.
The company also increased sales of gas and associated liquids in Egypt to USD1.5 million in the first-half of 2014 compared to USD600,00 in 2013.
In Morrocco, Circle started drilling on two wells in the last four months, with six further wells due to follow in the next 12 months. The current drilling campaign is aimed at enlarging Circle's reserve base and further production growth, it said. Circle noted internal recoverable prospective resources estimates of 100 million barrels of oil from its El Mediouni-1 well offshore Tunisia.
"The recent potential discovery in EMD-1 offshore Tunisia opens and extends the prospectivity over the whole Mahdia permit and is a potentially game-changing event in Circle's development," said Chairman Stephen Jenkins. "With the drilling campaign in Morocco continuing with its second well and further operations planned in Oman, the company has a very active and hopefully fruitful second half of the year ahead."
Circle's share price was up 2.49% to 25.75 pence per share on Wednesday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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