Sign In
27 Oct 2009 13:30
ο»Ώ
27thΒ October 2009
CIRCLE OIL PLC
("Circle" or the "Company")
Successful Testing ofΒ Al-Amir SE-4XΒ Appraisal Well,
NW Gemsa DevelopmentΒ Lease,Β Egypt
Circle Oil plc (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce that the Al-Amir SE-4X appraisal well has been successfully drilled and tested in the onshore North West Gemsa Development Lease inΒ Egypt.
Circle is delighted to confirm that the Kareem Formation (the "Formation") sandstones under test flowed 42° API oil and gas at sustained average rates of 5,500 bopd and 7.159 MMscfd using a 64/64" choke from the lower of two identified pay zones. The well, which is the third appraisal well to be drilled on the Al-Amir SE discovery area, has been completed, connected into the local infrastructure and is in production.
Log result based interpretations indicate that the total net thickness of the two pay zones is approximately 69 feet. The upper pay zone identified in the Kareem Shagar Sandstone is 23 feet thick and will be tested at aΒ later date.Β The lower tested pay zoneΒ in the Kareem RahmiΒ SandstoneΒ is 46Β feet thick.Β
A full technical evaluation of all the results is underwayΒ to permit development planning and is a precursor toΒ further assessment of the resourceΒ potential. An assessment of reserves has not yet been completed.
TheΒ Al-Amir test programme began once theΒ drilling rig moved to the north andΒ commenced drilling the Geyad 2 well which is the first appraisal well in the Geyad discovery area. The primary target will again be the Kareem Formation and it is planned alsoΒ to test for secondary targets in the Pre-MioceneΒ Nubia sandstones prognosed at a depth ofΒ 11-12,000 feet.
The NW Gemsa Development Lease is contained within the NW Gemsa concession coveringΒ an area ofΒ over 260Β square kilometres and lying about 300 kilometres southeast ofΒ Cairo,Β in a partially unexplored area of theΒ Gulf of SuezΒ Basin. The concession agreement includes the right of conversion to a production licence of 20 years, plus extensions, in the event of commercial discoveries. The North West Gemsa ConcessionΒ partners include:Β Vegas Oil and Gas (50% interest and operator);Β Circle OilΒ plc (40% interest);Β and Premier Oil plc (10% interest).
David Hough, CEO of Circle, said:
"This successful appraisal well,Β which has given the best results to date in the Al-Amir discovery areaΒ and will add to our current production,Β is yet more excellent news for Circle Oil. Al-Amir SE-4XΒ hasΒ gone into production and we will achieve stabilized production from the well as quickly as possible. We can be justifiably very pleased with the results of our ongoing drilling programme as these drilling successes further strengthen the Company's position and we look forward to the continuing appraisal of these growing assets."Β
Glossary
Bopd -Β Barrels of oil per day
API -Β American Petroleum Institute density scale
MMscfd - Millions standard cubic feet per day
In accordance with the guidelines of theΒ AIMΒ Market of the London Stock Exchange, Professor Chris Green,Β Chief Operating OfficerΒ of Circle OilΒ plc,Β an explorationist and geophysicist with over thirty years oil & gas industry experience,Β is a qualified person, as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies, who has reviewed and approved the technical information contained in this announcement.Β Professor Green has relied on information supplied by the operator in carrying out his review.
For further information contact:
Circle Oil plcΒ (+44 20 7638 9571)
David Hough, CEO
Β
Collins Stewart Europe LimitedΒ (+44Β 20 7523 8350)
Adrian Hadden
Fox-Davies CapitalΒ (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe RogersonΒ (+44 20 7638 9571)
Martin Jackson
George Cazenove
Notes to Editors
Circle Oil Plc
Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production Company with an expanding portfolio of assets in Morocco, Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term production and significant exploration upside potential. The Company listed on AIM in October 2004.Β
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in southernΒ Tunisia; the Mahdia Permit offshoreΒ Tunisia; the Grombalia Permit in northernΒ Tunisia; theΒ ZeitΒ BayΒ area ofΒ EgyptΒ and the Owambo Basin, Namibia. Circle also has the largestΒ licenceΒ holding of any Company inΒ 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 investmentΒ programmes,Β monetiseΒ 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 atΒ www.circleoil.netΒ
Follow the stocks
