Circle Oil Plc Regulatory News (COP)

7 July 2010

CIRCLE OIL PLC

("Circle" or the "Company")

Egypt Operating Update

Circle (AIM: COP), the international oil and gas exploration, development and production company, is pleased to announce that the Al Amir SE-6X down-dip flank appraisal well successfully tested a hydrocarbon bearing interval over a pay zone of approximately 8 feet in thickness in the Lower Rudeis within the interval 13,776 to 13,784 feet. A drill stem test flowed 45⁰ API oil at a sustained average rate of 66 bopd and 1.1mmscf/d of gas using a 32/64" choke. The well was shut in for pressure build-up and plugged back to a depth of 10,520 feet.  The well test confirms the presence of hydrocarbon resources in the Lower Rudies interval and whilst the Lower Rudeis formation will not produce at this time the results of the perforation and testing indicate potential for future work programmes. 

The Company is now preparing this well to test the main oil-bearing zone of the Kareem Shagar Sandstone. This has historically proven to be productive in other wells in the Al Amir SE field area. Once the Kareem sandstone is tested and evaluated, a further announcement concerning the results of the well will be made.

The NW Gemsa Concession, containing the Al Amir and Geyad Development Leases, covering an area of over 264 square kilometres, lies about 300 kilometres southeast of Cairo in a partially unexplored area of the Gulf of Suez 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 Concession partners include: Vegas Oil and Gas (50% interest and operator); Circle Oil Plc (40% interest); and Sea Dragon Energy (10% interest).

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In accordance with the guidelines of the AIM Market of the London Stock Exchange, Professor Chris Green, Chief Executive Officer of Circle Oil Plc, an explorationist and geophysicist with over thirty years oil & gas industry experience, is the 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. Professor Green has relied on primary information supplied by the operator in carrying out his review.

For further information contact: 

Circle Oil Plc (+44 20 7638 9571)Professor Chris Green, CEO

Evolution Securities (+44 20 7071 4300)Rob Collins : Chris Sim : Neil Elliot

Fox-Davies Capital (+44 20 7936 5230)Daniel Fox-Davies : Philip Davies

Citigate Dewe Rogerson (+44 20 7638 9571)Martin Jackson

Murray Consultants (+353 1 498 0320)Joe Murray : Joe Heron 

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 and Egypt, with a combination of producing, low-risk near-term production and acerage with significant upside exploration potential.  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; the Ras Marmour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; and the Zeit Bay area of Egypt. Circle also has the largest licence holding of any Company in Oman. In addition to offshore Block 52, 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. Circle may use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment. In addition it may seek farm-outs to selected partners who would then invest in the exploration and continue through to the development of the assets for production.

Further information on Circle is available on its website at www.circleoil.net.