Circle Oil Plc Regulatory News (COP)

18 Mar 2005 07:00

Embargoed: 0700hrs 18 March 2005 Circle Oil plc ("Circle Oil" or the "Company") Award of Block 49 in Oman, Middle East The Board of Circle Oil is pleased to announce that His Majesty Sultan QaboosBin Said al Said of Oman has approved the awarding of Block 49 to Circle Oilplc.Block 49, the Montasar block, has been awarded to Circle for a six year period.The first exploration period runs for 36 months followed by two 18 monthperiods. A work programme to include review of existing data and aerogravityand 2D and 3D seismic surveying has been agreed for the first period. A wellmay also be drilled during this time. Further drilling and seismic surveyingwill be carried out during the two additional 18 month periods.Block 49 covers an area of over 15,400 square kilometres and is situated in thesouthwest of Oman. It lies immediately to the west of Block 6 which producesover 700,000 barrels of oil per day. This concession is held by PetroleumDevelopment Oman, a company owned 60% by the Government of Oman, 34% by Shell,4% by Total and 2% by Partex Oman. Blocks 36 and 38 to the west of Block 49 areheld by Sinopec. Block 49 extends north to the Saudi Arabian border acrosswhich is located the Rub'Al Khali oil basin.It is expected that a Production Sharing Agreement covering all aspects of theexploration, development and production phases will be signed with the OmaniOil Ministry over the coming weeks.Commenting on the news, Mr. David Hough, Chief Executive of Circle Oil plc,said, "I am delighted that Circle has been awarded Block 49 as it gives theCompany significant exposure in a major oil producing country where almost allof the exploration and production areas are held by the larger oil companies.This acquisition further demonstrates the ability of Circle's technical team tosecure quality acreage in one of the world's main production areas."Mr. Jack Keyes, Circle's Chief Operating Officer commented that, "Theacquisition of Block 49 is part of Circle's ongoing strategy to establish apresence in the Middle East. It is the first of a number of explorationprojects currently being negotiated in that area. The fact that substantial oilproduction is taking place close to the borders of Block 49 is of majorsignificance and gives Circle great hope and encouragement for its explorationprogramme."David Hough, Managing DirectorCircle Oil PLCTel. +353 61 354831Ben SimonsHansard CommunicationsTel. 020 7245 1100ENDCIRCLE OIL PLC