19 Aug 2015 07:00
19 August 2015
Circle Oil plc
("Circle" or the "Company")
Extension of Permit for Mahdia Licence in Tunisia
Circle Oil Plc (AIM: COP), the North African focused oil and gas exploration, development and production company, is pleased to announce that the Tunisian Authority has approved the application to renew the exploration permit on its Mahdia block the ("Permit"). The Permit is being extended for three years until 19 January 20181 and Circle Oil, as operator, currently has a 100% working interest in the Permit.
The Mahdia permit offshore Tunisia covers an area of 3,024km2, and contains the El Mediouni structure which was drilled by Circle's EMD-1 well in August 2014. As announced on 26 August 2014, the well encountered notable oil shows in the Ketatna (Oligo-Miocene) carbonates. While mud losses prevented log data acquisition, Circle considers the shows to indicate a significant resource from the structure. The Permit also contains a number of similar prospects which the Company look forward to exploring in further detail.
The extension of the licence carries with it a one exploration well and one appraisal well commitment and a requirement to acquire 300km2 of 3D seismic.
Circle outlined its strategy for the Mahdia licence at its recent AGM. Given its material working interest the Company intends to select suitable partners with whom it can evaluate and develop the El Mediouni structure and other prospects on the permit. Circle has already had initial expressions of interest from a number of oil and gas companies with the financial strength and industry experience to make them suitable joint venture partners. The confirmation of this extension of the Permit will give interested parties greater certainty in making a formal approach and should greatly assist the Company in concluding an agreement.
This farm out strategy will minimise Circle's financial commitment, reduce risk, and still allow the Company to benefit from the potential of the discovery. This approach is fully consistent with Circle's strategy to grow the Company in a sustainable manner and deliver value to shareholders in a low oil-price environment.
Mitch Flegg, CEO Circle Oil comments;
"Circle Oil wishes to place on record our thanks to the Tunisian Consultative Committee on Hydrocarbons. We look forward to continuing to work with them with the aim of delivering a project which would bring considerable benefit to the people of Tunisia and to Circle. We will now move forward with the process of identifying a suitable partner or partners to work with us to realise the value of this exciting discovery."
ENDS
1The licence extension has been granted from January 20th 2015 until January 19th 2018.
For further information contact:
Circle Oil plc (+44 20 7638 9571)
Mitch Flegg, Chief Executive Officer
Investec (+44 20 7597 5970)Chris SimGeorge Price
James Rudd
CitigateDewe Rogerson (+44 20 7638 9571)Martin JacksonShabnam Bashir
Murray Consultants (+353 1 498 0300)Joe Heron
Pat Walsh
In accordance with the guidelines of the AIM Market of the London Stock Exchange the technical information contained in the announcement has been reviewed and approved by Mitch Flegg, Chief Executive Officer of Circle Oil Plc. Mitch Flegg, who has over 33 years of experience, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies,
Mitch Flegg holds a BSc in Physics from Birmingham University and is a member of the Society of Petroleum Engineers (SPE) and the Petroleum Exploration Society of Great Britain (PESGB).
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas exploration, development and production Company holding a portfolio of assets in Morocco, Tunisia, and Egypt with a combination of low-risk, near-term production, and significant upside exploration potential. The Company listed on AIM in October 2004.
Internationally, the Company has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW Gemsa permit in Zeit Bay area of Egypt.
Circle's strategy is to locate and secure additional licences 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 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 is available on its website at www.circleoil.net.