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10 Nov 2008 07:00
10 November 2008
CIRCLE OIL PLC
("Circle" or the "Company")
Drilling Update
Gas Discovery in Morocco
Circle Oil Plc (AIM: COP), the international oil and gas exploration and development company, is pleased to announce that the exploration well ONZ6 has been drilled, logged and successfully tested in the Ouled N'Zala Permit, Morocco.
The Company confirms a discovery in the Upper Ouled Formation with the well testing gas at a sustained rate of 3.32 MMscfd. The well has been completed as a potential producer and the drilling rig has now moved to the Sebou permit to commence drilling the second location of the six well drilling programme planned for the two permits.
A full technical evaluation of all the results is underway which will allow for forward planning as a precursor to further assessment of the resource including conducting an extended well test. A full assessment of Reserves has not yet been completed.
The Ouled N'Zala Permit lies north-east of Rabat in the Rharb Basin, Morocco. The Rharb Basin is a foredeep Basin located in the external zone of the Rif Folded belt. The concession agreement includes the right of conversion to a production licence of 30 years, plus extensions, in the event of commercial discoveries.
David Hough, CEO of Circle, said:
"This discovery in our first well in Morocco is excellent news for Circle. The well has been completed in readiness for an extended production test and the field test results are in line with our expectations for this area. We look forward to the results of the next well which will be the first in the Sebou Permit where Circle holds a 75% interest.''
For further information contact:
Circle Oil plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden
James Cassley
Fox-Davies Capital (+44 20 7936 5230)
Richard Hail
Citigate Dewe Rogerson (+44 20 7638 9571)Martin JacksonGeorge Cazenove
Notes to Editors
Circle Oil Plc
Circle Oil Plc (AIM: COP) is an international oil & gas company with an expanding portfolio of assets in the Middle East and North Africa, with a combination of low-risk production in Morocco and significant development and exploration upside potential in Morocco, Tunisia, Oman, Egypt and Namibia. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco including gas production; the Ras Mamour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; the Zeit Bay area of Egypt where it has had a recent oil discovery and the Owambo Basin, Namibia. Circle also has the largest licence holding of any Company in Oman. In addition to its highly prospective Block 52 offshore, the Company also has an ongoing exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses in prospective hydrocarbon provinces and through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may itself opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.
Further information on Circle Oil is available on its website - www.circleoil.net
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