13 May 2016 07:00
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13 May 2016
CIRCLE OIL PLC
("Circle" or the "Company")
Financial Update
Further to the announcement of 15 April 2016, Circle Oil plc (AIM:COP) the international oil and gas exploration, development and production company, is pleased to announce that International Finance Corporation ("IFC") has agreed to extend the suspension of the December 2015 redetermination and any repayments due under its Reserve Based Lending ("RBL") facility until 27 May 2016. IFC has indicated its willingness to consider further waivers as may be required to continue the Strategic Review process based on circumstances applying at the time of any application.
In addition, the Company has continued to focus on achieving an improvement in the regularity and quantum of US dollar payments from EGPC which now, alongside extracting US dollars from its Moroccan operations, is required to both satisfy its obligations to its creditors and fund operations. The Company expects to receive an improved payment from EGPC for the month of May compared to previous months, however the Company's cash flows and financial position remain under significant pressure and a sustained improvement in payments from EGPC is required.
For further information contact:
Circle Oil Plc (+44 20 7182 4913)
Mitch Flegg, CEO
Investec (+44 20 7597 5970)Chris SimGeorge Price
James Rudd
Jonathan Wynn
Murray (+353 1 498 0300)Joe Heron
Pat Walsh
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's shares were admitted to trading on AIM in October 2004.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.
Glossary
EGPC - Egyptian General Petroleum Corporation